MEGA buys GOLD

[Mega]

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

[Gnosis]

Re: MEGA buys GOLD

I will be buying gold soon.
How and with whom are you buying may I ask?

[grapejelly]

Re: MEGA buys GOLD

for physical in the US check out apmex.com

[Mega]

Re: MEGA buys GOLD

Perith Mint in Aus via a Euro-broker, not cheap but its 100% (backed by the Aussie Goverment).
Mike

[Jim Nickerson]

Re: MEGA buys GOLD

Perith Mint in Aus via a Euro-broker, not cheap but its 100% (backed by the Aussie Goverment).
Mike

As is the bonar by the US.

[Mega]

Re: MEGA buys GOLD

Do you trust the US?
Schiff don't!
I Don't !

Mike

[Jim Nickerson]

Re: MEGA buys GOLD

Do you trust the US?
Schiff don't!
I Don't !

Mike

No, I don't trust the US, but why would one necessarily trust the Aussie government more? And I don't know the answer to that question.

Governments and the power that accrues to the leaders seem to me mostly to behave the same the world over.

I'm in no way suggesting that what you are contemplating is not a good thing. I don't know if it is or isn't, or whether or not your thinking is or isn't correct.

[rj1]

Re: MEGA buys GOLD

Gold is going way up. Shocks me. I was thinking it was near topping out soon though, then Bernanke comes out today and prioritizes stopping a recession that's already occurring over inflation. Mr. Bernanke, that's fine and great, it makes my gold assets worth more though.

It is starting to make its way to the normal people that gold price is so high (midway down):

http://sports.espn.go.com/espn/page2...erbrook/080108

TMQ Futures Up in Heavy Trading: After the tech-stocks bubble burst in 2000 and dragged down Wall Street, everyone claimed it was obvious all along that this would happen; though, mysteriously, most who claimed they knew all along nevertheless failed to sell before the market collapse. After the housing bubble burst in 2006, everyone claimed it was obvious all along that this would happen; though, mysteriously, most who claimed to have known all along failed to sell their real estate when the market was high or even merely to re-fi to a fixed-rate mortgage. With the benefit of hindsight, investors, economists and pundits always say bubbles were "obvious." Though mysteriously, they fail to notice at the time!


So what bubble is inflating right now, to be deemed an "obvious" bubble after many shirts are lost? Gold has been up for seven straight years, rose at 31 percent in 2007 and already has risen several percentage points in 2008. The metal is now selling for $863, versus about $600 in 2004, and the price rise appears unrelated to any increase in the underlying economic utility of the commodity. Gold has little functionality beyond jewelry and dental fillings -- almost all those who buy gold plan to hold their purchase and sell at a higher price, rather than use the gold to make something. That is, they are counting on market psychology to make their purchase more desirable, rather than adding value to it themselves. Just a word of advice: THIS IS THE CLASSIC PATTERN OF A BUBBLE! Tulip bulbs, Web start-up stock, nutria, Florida condos: If the price is rising fast and buyers are jumping in solely with the goal of flipping, a bubble is in progress. Last week, gold futures rose to their highest level since January 1980, which is when the last gold bubble burst. Don't say you weren't warned! But after the gold bubble bursts, do feel free to say this was obvious all along.

[Guest]

Re: MEGA buys GOLD

RJ1 -

Some people concluded even two or three years ago that gold was beginning to sketch out the contours of a future "parabolic spike". So yes in that sense it will indeed wind up bubble-like. As to it's being useless, there seems to me a curious myopia in this viewpoint. A ''store of value" with a several thousand year pedigre, has evidently established a very consistent "use" during the course of all those many extremely varied civilizations. It's usefullness was so vehemently affirmed, that nations went to war, or were precluded from going to war, precisely due to the having of it, or the lack of it. That's a heck of a lot of clout, for a useless metal.

In a way the early 21st Century is a bit unique - the entire world followed the US off the gold standard - and w've had several decades to grossly inflate the alternative media of exchange. When a "forgotten" asset class gets rediscovered the upside is not an intuitive number. It is an "undiscovered value" which is not a factor of it's value back in 1970 for example. The volumes of fiat which have replaced it far exceed it's current inflation adjusted value.

The thing about parabolic spikes in any asset class is that once they are well under way, they sort of "predict their own future". Even without factoring in all the empirical data worldwide evidencing the global fiat currencies are undergoing some serious realignments, the fundamentals for hard stores of value today seem superb. Put that empirical observation together with the fact that "parabolic spikes predict their own conclusons" and you've got a very interesting "inflection point" in the progress of precious metal valuations.

I marvel a bit at those who consider gold to be expensive compared to the multiples of enlargement in the currency and credit markets. I guess gold is a topic which conjures up a lot of flashes of irrationality one way or the other - at present, my sense is that the irrationality pertains to those who consider gold to be in any way overvalued compared to the fundamentals, or to the point it seems to occupy in it's own trajectory.

Gold will have (one of a series of) a blowoff spikes - maybe even within a year. But anyone who thinks that's it for this upcycle is to my mind ignoring a tremendous weight of data that suggests just the opposite.

[raja]

Re: MEGA buys GOLD

In the future, I think all money will be digital . . . credit cards of some sort. Metal coins and bills are too cumbersome and unnecessary.

It's true that digital money is the same as government fiat, and it will be devalued over time. But government will always be with us, and in charge of the money, so this is an inevitable part of life.

I expect that the future of gold is to return to it's value as a metal. After all, gold will be devalued if people don't value it, and it is has small intrinsic value.

That being said, I do hope to profit from a huge gold bubble in the coming months/years. I just hope I'm lucky enough to get out near the top.

[grapejelly]

Re: MEGA buys GOLD

In the future, I think all money will be digital . . . credit cards of some sort. Metal coins and bills are too cumbersome and unnecessary.

It's true that digital money is the same as government fiat, and it will be devalued over time. But government will always be with us, and in charge of the money, so this is an inevitable part of life.

I expect that the future of gold is to return to it's value as a metal. After all, gold will be devalued if people don't value it, and it is has small intrinsic value.

That being said, I do hope to profit from a huge gold bubble in the coming months/years. I just hope I'm lucky enough to get out near the top.

money is backed by something. Digital money can be backed by goods, services, or commodities and should be or it is not really money.

[BlackVoid]

Re: MEGA buys GOLD

"money is backed by something."
Current money is not backed by anything. You are right, it is not really money.


cheap but its 100% (backed by the Aussie Goverment).
My grandparents lost a LOT of money because they believed in some gold certificate backed by the government. In a fiscal emergency (which may be due soon), the government will not back your worthless paper. I would not trust ANY government.

"I expect that the future of gold is to return to it's value as a metal. After all, gold will be devalued if people don't value it, and it is has small intrinsic value."

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.

[The Outback Oracle]

Re: MEGA buys GOLD

Perith Mint in Aus via a Euro-broker, not cheap but its 100% (backed by the Aussie Goverment).
Mike

Mike

There is a warrant traded on the ASX .....ZAUWBA which is essentially Gold backed by the Perth Mint. It might save you dealing through European brokers...depending on the fees.

I agree with all the comments re Governments. Anyone who trusts a Government, particularly, here just this is probably a cheaper more liquid way of doing it than buying from the Mint and having them store it for you. I think from memory they have a 3% spread buying and selling as well.

Cheers

[grapejelly]

Re: MEGA buys GOLD

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.

The things people vote on, Hilary or Obama, is hardly of any consequence. The real issues are not talked about except by a "longshot" like Ron Paul (okay, I'll step away and go quietly now...)

[Rajiv]

Re: MEGA buys GOLD

Two relevant itulip threads on this concept

Complementary Currencies

and

Money and Debt - Part III - Segregated Monetary Functions