Explain gold investing to me??

[Larro Darro]

One of my friends own a pawn shop. He always pays current market price for rings and such. Jewelry stores have a 1600% markup over market prices, by the way. When the price of gold was so high, he sold a couple of pounds of old rings and necklaces a month. Now that it has dropped again, he is holding on to them. If you realy want gold, go to your local pawn broker and ask to buy up some of his old jewelry in bulk. He will sell it for just a little over market price if he has a bunch of old stuff he hasn't sold. But don't melt it down. That is against the law.

Larro

 

[TnAndy]

But don't melt it down. That is against the law.

Larro

What law ?

 

[TnAndy]

In my uninformed opinion, there is no advantage to owning or investing in a rock. The value is dependent on what others think the value is (supply/demand/artificial supports).

That is pretty much true for every single thing on earth. The market in anything is established by folks wanting to buy it.

Just so happens gold and silver have thousands of years of history of folks wanting them, so the value of it has never been zero.....whereas every paper currency that ever came off the press has a history of being worthless at the end of it's scam.

Personally, I'd likely never trade a gun or ammo, since you might find yourself on the wrong end of them down the road if things got tough.

And the reason money was invented ( real money ) was barter is clunky. I have two chickens to trade, but can't find anyone that has socks I want.

Money is also handy as a storage of labor for rainy days. I raise a perishable crop ( say watermelons ) with a limited shelf life...if I can sell them, I can store that money away to purchase things I need later that might not be available today at Barter Town. If I sell my melons for a dime each, I can reduce a truck load to a pocket load.

Many folks don't believe in real money. I understand, the FED and the feds have done a tremendous brainwashing job over the last 100 years. I'm not here to convert anyone.

But I do often hear the same argument...."I'd rather have this or that over gold or silver". To which I reply "Nothing says you can't do both". And I am a prepper.

 

[MossRoad]

One of my friends own a pawn shop. He always pays current market price for rings and such. Jewelry stores have a 1600% markup over market prices, by the way. When the price of gold was so high, he sold a couple of pounds of old rings and necklaces a month. Now that it has dropped again, he is holding on to them. If you realy want gold, go to your local pawn broker and ask to buy up some of his old jewelry in bulk. He will sell it for just a little over market price if he has a bunch of old stuff he hasn't sold. But don't melt it down. That is against the law.

Larro

I don't think its against the law to melt your own gold. In fact, I know several people that do it and sell it.

 

[Larro Darro]

I don't think its against the law to melt your own gold. In fact, I know several people that do it and sell it.

You are right. I was thinking of minting.

Larro

 

[TnAndy]

You can mint it as well.....you simply can't use the word "dollar" on it, or call it anything in dollar terms. There are private mints around that crank out all kinds of coins.....usually overpriced, and/or with just a fraction of plated metal on a cheap slab, but they are commemorative coins....not money per se.

THEN there are quite a few mints around that crank out REAL coins:

Forum I belong to: Gold is Money - The Premier Gold and Silver Forum -- Goldismoney got together some years back, designed our own 1 ounce silver round, and had our own coins stuck by a mint.


One of my favorite 1oz rounds is the Constitution round:

 

[Larro Darro]

I did a quick google search, and I must have been thinking about bullion. But since it has been legal since 1974, it shows how much I know about the subject. I'll just shut the door as I leave.

Larro

 

[LD1]

In my uninformed opinion, there is no advantage to owning or investing in a rock. The value is dependent on what others think the value is (supply/demand/artificial supports). If the economy, government, and financial institutions collapse you will have rocks to throw at people.

It seems preferable to buy guns, ammo, and supplies. Any of those can be resold and, in case of a total catastrophe, would be valuable bargaining chips.

And, no, I'm not a Prepper.

That is pretty much my stance on it to.

I hear all these radio and TV ads (for the last several years) that claim now is the time to buy, blah blah. Whel, when you are selling, you are always going to tell your customers that :mur:

And it always seems places want to sell for more than market value, and buy for less than market value. Makes no sense to me. If an ounce of gold is worth (lets say) $1500, why on earth would I want to spend $1600 for it, and if in a few weeks I need money, and gold is still stable at $1500/ounce, I would have to sell it for $1400????

It really seems to me (and my un-educated self) that gold isnt really worth what gold is worth. And it seems there are alot of folks out there taking advantage of people needing money and paying well below what value is. And taking advantage of people who are buying into all the hype of owning gold, and selling it to them for way more than it is worth telling them that prices are set to skyrocket.....:mur:

 

[grsthegreat]

I used to purchase gold coins years ago thru bullion dealers. Was just for fun. Nothing like the feel of 1OZ gold coins. This was back when gold was $300/oz or so. Mind you 20 years ago, $300 was worth WAYYYYY more than $300 today is worth.

After several years, i got tired of hiding them so i decided to sell them. Gold had gone up about $100/oz at that time, so i thought id make a little money. Then the dealers took their cut, then the fed govt took its cut (capital gains). I ended up with about the amount of cash i invested.

I guess if i had bought at $360 and sold at 1,900 id be in pig heaven, but i know i wouldnt have sold then, and it would now be worth 1,200. Still not bad,but then i probably wouldnt sell it at 1,200 cause i was sure it would go to $5,000 like all the talking heads have been saying for 5 years. So id probably just hold onto it until it goes down to $400/oz again.

My biggest problem with gold investment is i dont believe the price of gold has really increased much over the past 20 years. 20 years ago gold was 300-360 per oz. Today its 1,200. But 20 years ago 360 had so much more buying power than it does now. If you look at the average value of gold over time, it hasnt kept up with inflation. Gold SHOULD be selling at $2,000 just to be what it was worth in 1980.


Id NEVER buy gold certificates... only real tangible gold (also look up how much fake gold has been selling out there...buyer beware)



but heres the kicker. At the same time i played in gold i purchased 20 acres in Idaho for $2,000 per acre. That property in today's market is selling at aprox $15,000-20,000 / acre . I built a nice ranch on this property, and love it way more than any gold i might have purchased hehe

 

[newbury]

And it always seems places want to sell for more than market value, and buy for less than market value. Makes no sense to me. If an ounce of gold is worth (lets say) $1500, why on earth would I want to spend $1600 for it, and if in a few weeks I need money, and gold is still stable at $1500/ounce, I would have to sell it for $1400????

Because just like everything else they are in the BUSINESS of buying and selling. Or do you work for free?

But there were many threads on here about the great value of buying gold when it was at about $1700. Surprised they haven't chimed in. Oh wait - it's down to $1250.

Gold goes up and down. If your going to get in it you've got to buy low, sell high and hope you know the difference.

I prefer to buy land and not sell. Just sell trees.