Posted by Tina
Here come the seventies…
As Fed Prints Money, Gold, Oil Soar – IBD
During that troubled decade(1970’s), huge amounts of money moved from productive assets into inflationary hedges such as gold and oil to protect investors’ capital. Central banks printed money like mad. The result was raging inflation, shortages and lower standards of living. Not to mention disco…
Just barely stayin’ alive…stayin’ alive…
There are a lot of people that strongly think gold will at least hit $1500 soon and many are saying $2000 an ounce in 10-12 months. This does not bode well for our trust in paper currency.
I heard a guy on NBC yesterday say it would be $5k in 5 years. And silver, the poor man’s gold, will rise as well.
Gosh Peggy…let’s hope some sense comes to DC before it hits 5K or it won’t really matter; inflation will make buying a loaf of bread difficult even if we do have some gold tucked away! 😮 MG!
Wow…if that happens you know our paper currency won’t be worth diddly.
I have a few uncirculated 1 oz gold coins in the safe deposit box and I have a few pounds of pure silver coins there too. Sure glad I got them now. Wished I had 100X more.
Yup, we’ll be just like Germany before WWII, needing a wheelbarrow of cash for a loaf of bread. As longs as the Feds keep printing money to pay the bills we are headed for double digit inflation. Only question is how big the first digit is.
Gold and silver are examples of the Bigger Fool theory of investing. Neither one does anything or has any significant use, and neither produces a product or service that can make a profit. You just hope that however much you paid this year, you can sell it for even more next year to the bigger fool than you were. Of course, if you and everyone else are broke, then you are all trying to sell your gold at the same time, so the price would drop. As for buying a loaf of bread, remember that you still have to sell your gold somewhere and receive regular folding money in return. If the currency is worthless, as some claim it will be, then what do you do with your gold? Just try going to Safeway and paying for your groceries with a hunk of gold. In fact, try it today, and see what happens. If you really think Armageddon is right around the corner, then forget about gold and buy ammunition.
Soaps: “Gold and silver are examples of the Bigger Fool theory of investing.”
Gold isn’t an investment so much as a way to protect investments during times like this. As stock values fall the value of gold rises and wealth holds steady. To be effective one must purchase the gold when the price is low.
“If the currency is worthless, as some claim it will be, then what do you do with your gold?
If it comes to that gold would be best be spent purchasing farmland and equipment from someone that needs to sell rather than bread at Safeway.
“If you really think Armageddon is right around the corner, then forget about gold and buy ammunition.”
Good advice, with or without Armageddon 😉
You know, you all were written up in Harpers … back in August ….
Alas, Armageddon has passed you by. You’ll just have to plod on, under this appallingly progressive administration, to prosperity, of a sort.
Guess it all depends on how you define prosperity. The definition of a communist is somebody who has nothing and wants to share it with you…that ain’t prosperity to me.
Libby, want to read something blunt from a guy in South Korea? Here’s a person who has benefited by America and look how he sees things from his side of the ocean…warning R for language:
http://www.freerepublic.com/focus/f-religion/2121410/posts