MEGA buys GOLD

[raja]

Re: MEGA buys GOLD

History is proof that this is just not true. Gold does have intrinsic value. And no, it will NEVER be just another metal. Remember, central banks still hold a lot of the stuff. The Chinese and the Russians are building up their stocks too. IF and WHEN all central banks sell all their gold and the Chinese (and other peoples) will think that this is a good for nothing metal, then what you write may happen. Chances for it in this century? ZERO.

Historically, gold was used as currency in the US . . . but it isn't anymore. Fiat money and digital money is all that's left. I think that teaches us that gold can be dispensed with.

Even though gold is being stored now by CBs, I think that governments would prefer that gold was no longer a factor in the world economy. Gold is an inviolate measure of government's debasement of money, and they would just as soon be rid of it.

I don't know about the timing, but IMHO eventually gold will return to it's jewelry and electronic value. There's not enough of it to represent the world's wealth, and it's too inconvenient for daily exchange.
The reason it was used as money in the past was due to it's rarity. Modern governmental control can create artificial digital rarity -- if it gets it's act together -- but that might take awhile.

[c1ue]

Re: MEGA buys GOLD

Modern real money: gift cards. They are backed by the merchant who issues them. And they can be digitally transmitted.

GJ,

This is a great point.

I haven't considered it at length, but it would seem 'gift cards' are a great way to get around the legal issues of issuing your own currency.

All that is needed is to change the denomination from dollars...

[BiscayneSunrise]

Re: MEGA buys GOLD

[QUOTE=grapejelly;24189]Modern real money: gift cards. They are backed by the merchant who issues them. And they can be digitally transmitted. This isn't rocket science. The government could be out of the "money" business to everyone's advantage in the long run...and this will I think happen anyway. As usual, we are brainwashed to believe in government monopolies as necessary. "Democracy" gives the King credibility but it is the same old dictatorship.

Same with frequent flyer points. And like fiat currency, the airlines get to say what they are worth and even how you get to use them.

Some are predicting a future currency based on either a basket of commodities or a basket of equity indexes.

[grapejelly]

Re: MEGA buys GOLD

Remember Grapejelley's motto:

Money that is "backed" is meaningless.

Money that can be redeemed...now that is something!!!!

[metalman]

Re: MEGA buys GOLD

EJ, you an Schiff had better be right about this or it's death by BONGO!
Mike

ej said buy gold in 2001 @ $260. schiff? now it's $900 and mega is buying. time for metalman to sell?

[grapejelly]

Re: MEGA buys GOLD

ej said buy gold in 2001 @ $260. schiff? now it's $900 and mega is buying. time for metalman to sell?

I think the US dollar will rally in 2008 and gold will fall.

Maybe gold will be at $760. Who knows. But if your timeframe is longer than a year I would buy gold. And I would buy gold anyway because nobody can predict the future and that's why you own gold.

I wouldn't discount silver either...

[Mega]

Re: MEGA buys GOLD

Schiff thinks its a go-er BTW its just past it peek of what 1980?...........Peter & Mega think it got a long way to go yet Matey!
Mega

[Mega]

Re: MEGA buys GOLD

Sorry 81:-

Adjusted for inflation, Gold remains below record levels however. The $875 an ounce level reached in 1981 would equate to around $2,200 today.

Might piss pass that as well as India & China join in!
Mega

[rabot10]

Re: MEGA buys GOLD

EJ, you an Schiff had better be right about this or it's death by BONGO!
Mike

I like the PM - for 50k you can go direct - 250k no fees - what does Peter say about that?

[Mega]

Re: MEGA buys GOLD

Sorry Rick
Perth Mint?
Mike

[grapejelly]

Re: MEGA buys GOLD

I thought this thread was about gold, not paper

[rabot10]

Re: MEGA buys GOLD

ej said buy gold in 2001 @ $260. schiff? now it's $900 and mega is buying. time for metalman to sell?

lol not yet metal guy - soon

[Tulpen]

Re: MEGA buys GOLD

I think that the time to short is coming soon.

Too many people are getting into the bubble thinking that gold is going to $3000 and that it is a sure thing.

[grapejelly]

Re: MEGA buys GOLD

I think that the time to short is coming soon.

Too many people are getting into the bubble thinking that gold is going to $3000 and that it is a sure thing.

gold prices have risen in tandem with the Euro/US$. Once the Euro begins to correct gold prices will likely fall. This isn't a bubble, just a routine correction in a bull market.

There *is* no gold bubble. There is not the widespread public participation. Nobody I know gives a crap about gold (yet).

[Tulpen]

Re: MEGA buys GOLD

There *is* no gold bubble. There is not the widespread public participation. Nobody I know gives a crap about gold (yet).

Check today, GLD is the 9th most active stock on the Amex with almost 18 million shares traded with more than one hour to go.