Surviving the Dollar Collapse in Charlotte (taxes, living, legal)

[CouponJack]

Originally Posted by CharlotteCharlotte

Very true Gold has been going up steadily and is an excellent investment. I just think that the percent return on Silver will be far greater in the coming months/years than it would be if one owned Gold.

Simple rule I follow is that when the average joe or herd starts telling you to invest in something, we are in a bubble....

Which is exactly what is going on w/gold right now...

[lumbollo]

Originally Posted by CouponJack

Simple rule I follow is that when the average joe or herd starts telling you to invest in something, we are in a bubble....

Which is exactly what is going on w/gold right now...

The average person, these days, has no idea about gold in terms of investment as I would expect that few people have any aside from some jewellery. After FDR took everyone's gold and gold certificates in 1933 and replaced them with federal reserve notes there hasn't been enough gold in US circulation to make much difference except to those savy enough to hold it. The law that allows a president to do this is still on the books BTW, but the government doesn't bother because they know it there isn't enough of it in private hands in the USA to worry about. (this law allows them to seal all safety deposit boxes so the government can withhold anything deemed necessary for the economy which is how they got all the gold back then)

Gold is going through the roof, not because of anything that US citizens are doing but because it is moving in vast quantities from the West to the East (globally). This has been going on since 9/11. As an example India's central bank just today bought 200 metric tons of gold and is moving it to India to shore up their reserves. Individuals buying gold here won't even come close to a fraction of that.

[CouponJack]

I don't think there's anything wrong w/holding some gold (physical) as a hedge and diversifier to your portfolio, however providing 8 yrs of data mining of gold's performance is practically worthless. Over the long term the historical rate of return in commodities is very low and my crystal ball is too cloudy to determine if the long term rate of gold will be any good.

[lumbollo]

Originally Posted by CouponJack

..... Over the long term the historical rate of return in commodities is very low and my crystal ball is too cloudy to determine if the long term rate of gold will be any good.

Gold has been such a good store of wealth that it has been used for this for over 5000 years, maybe longer.

The dollars we have now, federal reserve notes, which is fiat money issued by a private system, have only been around for 80 years and they are worth less each year.

Maybe I am missing something, but given that comparison, I don't see a downside.

[CouponJack]

Originally Posted by lumbollo

Gold has been such a good store of wealth that it has been used for this for over 5000 years, maybe longer.

The dollars we have now, federal reserve notes, which is fiat money issued by a private system, have only been around for 80 years and they are worth less each year.

Maybe I am missing something, but given that comparison, I don't see a downside.

Maybe this is the wrong thread, but I was comparing gold to equities...(not the dollar)...never mind, my bad..

[lumbollo]

^Oh no problem. Here is a 10 year chart of the stock market expressed in terms of gold. Stock market is normally expressed in terms of Federal Reserve Notes.

[CouponJack]

Originally Posted by lumbollo

^Oh no problem. Here is a 10 year chart of the stock market expressed in terms of gold. Stock market is normally expressed in terms of Federal Reserve Notes.

stock market expressed in terms of gold? Not sure what the point is....yes, the BROAD market has been flat over the past 10 yrs, but no one I know put all their life savings on November 3rd 1999 in the broad market. I diversifed just like many long term buy and hold investors.

Please explain

[mullman]

Originally Posted by lumbollo

Maybe I am missing something, but given that comparison, I don't see a downside.

The downside is that once every other cable tv or radio ad touts 'now is the time to invest in gold!', it is too late.
Now it's just cattle time rounding up the clueless to overpay.

[lumbollo]

Originally Posted by mullman

The downside is that once every other cable tv or radio ad touts 'now is the time to invest in gold!', it is too late.
Now it's just cattle time rounding up the clueless to overpay.

Anyone that takes advice about investing from cable TV is setting themselves up to be busted. However just because they give advice to invest in something doesn't automatically mean it is a bad, you are gonna get burnt, move. This is a logical fallacy.

The mistake that people are making now, in terms of investing, is assuming that we are in a typical business cycle and this will work itself out in a few years. I personally don't believe this is the case for a number of reasons and because of those reasons, the old tried and true isn't going to work. Tried and true is invest in stocks and real estate.

BTW, there was a popular, often cited article out at the time in 2003 that said that Gold was way over bought and to get out of it soon. At that time it was ~350/oz.

[CouponJack]

Originally Posted by lumbollo

Anyone that takes advice about investing from cable TV is setting themselves up to be busted. However just because they give advice to invest in something doesn't automatically mean it is a bad, you are gonna get burnt, move. This is a logical fallacy.

The mistake that people are making now, in terms of investing, is assuming that we are in a typical business cycle and this will work itself out in a few years. I personally don't believe this is the case for a number of reasons and because of those reasons, the old tried and true isn't going to work. Tried and true is invest in stocks and real estate.

BTW, there was a popular, often cited article out at the time in 2003 that said that Gold was way over bought and to get out of it soon. At that time it was ~350/oz.

Basically lumbollo what you are saying is that "this time its diffferent" in terms of what's worked for many years will not work in the future. There have been mania's over time (tulip craze, dot com bubble, peak oil, etc) and there will be cycles in the future..that I can guarantee w/100% certainty... I can't guarantee where the DOW will be in 2015 or the price of gold, but frankly I don't care.


I disagree 100% w/that(guess we'll have to agree to disagree ) and will continue to have a diversified portfolio that has served me well in the past and believe will serve me well in the future.