40 Replies to “It’s Probably Nothing”

  1. Man I wished I got into that a long time ago. You can leverage gold 100:1 fairly easily. Gold goes up 1%, you double your money.

  2. Could it have been Layton’s rise in the polls during ground game week here? Probably not, although I did read of financials rumblings attributle to that, more likely the presser held by the “fedhead” down south where he didn’t provide a whole lot of comfort.
    bverwey

  3. Gold’s been good, but seriously:
    take a look at silver. It’s up almost 40% since January, and at $47/oz (now, hurry!), it’s much more affordable.
    Buy Canadian 1-oz maple leafs, as the premium on American Eagles is much higher.

  4. On a more sober note I was looking at freeze dried food. For the larger packages ie 3 months for four they can’t meet demand. They claim suppliers are short and are telling customers they are no longer customers. They will ship stuff when they get it.
    I don’t know if it is going to the military, disaster aid or people are getting real nervous.

  5. I got out of that casino they call the stock market and bought gold and silver over the past couple of years. Some of my acquaintances told me I was stupid. Now they just hate me.

  8. Fortunately I’ve been stacking both percious metals for the past three years – most of my silver was accumulated at the 8 – 15$ /ozt – gold between 950 and 1100/ozt – really great returns – nothing out there can match it I believe – trouble of course is when to trade from silver to gold to acquire as much as one can for free – so, following the ratio which I understand is less than 33:1 – much talk about the ratio en route to 15:1 – two weeks ago a woman approached me with an offer to sell a 20oz and a 5oz bar of silver – she paid 980.00US in 1980 – I offered 900.00CDN she accepted – to date that is now worth 1200.00 – good investment I reckon – currently there is much talk of silver going to 50.00 and 100.00 probably due to Burnake’s yakfest today – buy if you can – dydd – and hang on – it’s going to be wild I say. . . .

  9. Canada’s debt to GDP … about 32%.
    US debt to GDP … close to 100%
    Canada’s annual GDP … $1.6 billion.
    US projected deficit this year … $1.6 billion.
    Since nobody else is buying US treasury bills, the Fed is buying treasury bills.
    That leads to … hyperinflation.
    If gold hits $5000 and ounce as the article suggests, that means the US dollar’s purchasing price compared to today would be 31 cents.
    Just do the math. Today’s price of $1,550 divided by $5000.
    Buy gold and silver! Stocks or bullion.

  10. I’ve never understood this fascination with owning straight bullion such as coins. Unless you’re an actual coin collector.
    Leverage is how you make money with ANY commodity.

  11. I have been following my silver for over a year and a half and i baught at 18/per ounce ….keep spending go ahead i will laugh all the way to the bank ..lol…no no i know just kidding i would rather my silver be worhtless and have a booming economy and have balanced budjet’s so on and so forth but while this is the real world i will just ride the wave people have been projecting 100/per ounce by the middle or end of 2012 .. (tounge in cheek)but that won’t matter casue the worl will end in 2012 anyway so …giv er’

  12. yep.
    you investors go ahead and stock up on gold.
    mortgage your house and cash in the kids’ college fund but gotta have that yellow stuff.
    until suddenly a big holder decides enough is enough and that sudden modest but very sharp drop creates a butterfly effect.
    you cant eat gold, you cant eat cash. OTOH, buying up in the housing mkt means you actually get to enjoy your property instead of being blinded by all those dollar signs in front of your face.
    also, the trick is to time it sose the hyperinflation hits just after renewing said mortgage so you can pay it off with all those hyperinflated dollars.
    besides, with all those right wing gun nuts in a frenzy of panic they’re just going to steal the gold anyway. tad harder to throw an entire house in the glove box during the getaway n’est-pas?

  15. ping and phantom:
    Whatever works for you, I’ve got no problem with.
    Good luck!

  17. @ ping
    I understand that but housing will tank just as fast as gold and silver will actuallyi bleleive it will tank before gold and silver will think about the u.s. the housing market tanked and then silver and gold went through the roof ….
    as housing negative value during tough economic times where as gold and silver thrives …i understand you can’t eat gold and silver nor can you load them into a modern day gun …so tell me i have a hand ful of guns lot’s and lot’s of ammo …as well i also have lot’s of food and water and hygenic product’s and medical product’s in storage so tell me what am i missing ….maybe the fact that i am still in a small city of 40k may work to my disadvantage but i am working on an acrage in them iddle of nowhere that will take time but i am working on it so what have i missed i am a novice welder and a sheet metal structures tech by TRADE …i don’t push pencils all day i would have value to a small comunity if it got that bad but if it get’s that bad my freind all you will need is food water guns and ot’s of ammo the precious metals is a reflection of the lack of stability in the u.s. economy the debt the west carries and few others ….so go ahead defend your housing theroy but you go tell someone to move out when the sh!t hit’s the fan …you will probly get a gun in your face to greet you at the door!!!

  19. Ping,
    I own my home outright. No kids, no debt. I wouldn’t advise anyone to risk their home and family for the sake of greed. The smart people are putting at least ten to fifteen percent of their net worth in precious metals. What wrong with that? It’s paying off big time.
    Nothing has changed. The US and Europe are imploding, Canada will get caught in the vortex.
    It’s not a matter if, but when. There will be a collapse unless Obama has a heart attack and Sarah Palin wins the next election. She is a lot smarter than Bernanke and Obama put together. She predicted all this some time ago.
    Real estate is nice, but you can only live in one house and the way things are going, there is no guarantee you will find viable renters for any other property you may own. Housing may well collapse again too. In fact it is likely since with economic doom on the horizon there won’t be many buyers, prices will collapse.
    Huge inflation is upon us already unless you have not shopped in the past year.
    We are in big trouble at this time and we have idiots in charge of everything. Gold, silver, guns, food and supplies are where to be. Start now and stop criticizing those who have been preparing.
    You sound like my acquaintances who hate me. But then I dunno … maybe it’s envy? … Fear?

  20. The last time gold had a big run up it then crashed as the us raised interest rates to double digits. Most people expect this to happen again.
    What if instead of gold crashing the us dollar does. Just asking?
    http://fofoa.blogspot.com/

  21. Add this to my missed opportunities list. Last year I looked into taking most of my RRSP funds and buying gold with them. Apparently you can invest your RRSP in gold, but what I didn’t like about it was that you never got to bring the stuff home to play with. At the time gold was $700/oz. Oh well, I never had planned on retiring anyway.
    My best longterm investments are guns and ammo and canned food is next on the list.

  22. Loki…freeze dried foods, water, means of cooking and common sense is all that’s required at the moment. Prepare is all.
    bverwey

  23. My financial advisor told me that until WWII the very wealthy typically held about 15% of their wealth in gold.
    I don’t think of gold as an investment – it is rather a life preserver in case the US economy collapses.
    Think of it this way. If gold goes up you’re happy. On the other hand, your other investments are likely not doing well.
    If gold goes down you’re happy because your other investments are probably doing fine.
    The two among my friends who have been goldbugs for a long time are both very happy with that.
    One of them is not buying gold right now – silver instead = but he is a happy gold bug.

  24. Re stockpiling food: remember that in WWII the RCMP raided the houses of “food hoarders”.
    There wouldn’t be the excuse for them to steal your gold or silver bullion.

  26. Never mind the gold. Wheel weights. And molds.

    Posted by: The Phantom
    Every once in a while I have to agree with you.
    I did that years ago; stocked up on primers and powder too.

  27. the government can do anything they want. For 41 years, it was illegal to hoard gold in the USA . . . . .

  28. Forget gold. It’s cotton that’s gone through the roof:
    Sep 2010 104.73
    Oct 2010 126.55
    Nov 2010 155.47
    Dec 2010 168.22
    Jan 2011 178.93
    Feb 2011 213.18
    Mar 2011 229.67
    John, the problem with gold is that when it goes down it sinks faster and further than the Titanic.
    A friend of mine bought loads of the stuff during the huge price run up in the mid 1970s. All bought on margin and was wiped out with margin calls when the price tanked from its then-high of about $750 to less than $350.
    Virtually overnight, the Kirkland Lake mines were out of business. Unlike copper or silver, it has no industrial demand to provide some price stability.
    And unlike equity or debt, gold pays NO dividends. It’s pure speculation. And you may be very sure that the sharks on the exchanges know a lot more about it than we do.
    So no, it’s not a life preserver unless you know what you are doing in commodity and futures speculation, not to mention future currency valuations.

  30. bverwey, I’m not sure why people would want to stock up on freeze dried foods? The only time I ever used them was when I was going on extended backwoods hikes when every extra ounce of weight in the pack was noticeable after 20 miles. If I’m thinking of remaining in one spot, canned food seems like the way to go. Have a house now that’s also easy to defend but the best thing about where I live is that it’s in a small enough center that I know all of my neighbors. Would never want to live in a small apartment in a large city again.

  31. cgh, I am kinda with your thinking. Gold above the ground is more plentiful than silver, by a ratio of about 10:1 – because silver is used in many industrial applications – and ends up back in the ground – whereas 99.9% of gold stays above ground

  32. Plus, the graph is in USD. It would be interesting to compare to CDN, although gold is better than holding CDN cash

  33. I have been buying both hard and ETFs since about the 24$ mark (lord I wish I had started earlier instead of some of the “investments” I had made in various other entities in the years prior)
    Niether gold nor silver have eclipsed their highs reached in 1980 when inflation is factored in, and silver has not yet even done so dollar for dollar, so I don’t think we can say we are in a bubble as of yet.
    The big difference for me is that some of the dynamics which lead to a run up in gold and silver were attributable to a misguided President with misguided policies.
    Obama is no Carter. This time the USA is intentionally being steered off a cliff, and its currency willfully being devalued.
    Bought more yesterday and will continue to do so for as long as the US continues to print money.

  35. cgh:
    A little learning is a dangerous thing.
    Gold has had one bear market – in the late 1970’s, after its price had been controlled for over 40 years by the US government. Once it was set free, it reacted, and as is normal for a once price controlled item, it overshot. It didn’t help gold that Paul Volcker, the only central banker in my lifetime with any idea of what was going on, had the guts to raise interest rates to 21%. The only other times gold prices went down in real terms were brief flurries after major gold finds, such as 1848 in California, or the turn of the century Klondike. Those aren’t likely to re-occur.
    After the 1970’s moonshot, gold settled down and kicked around for a while, its price again manipulated by central banks that were selling off gold stocks at bargain basement prices. (Hello, Mr. Brown. Hope you enjoy the wedding!) But, if you had actually studied financial history, you’d know that it’s fiat currencies that have a long history of implosion, not gold. And clever folk noticed that the huge deficits of the US in the 1990’s (the Clinton “surpluses” were as spurious as his definition of “is”) weren’t going away, nor were the deficits in Euro-land or Japan. They started accumulating gold in the late 90’s, and haven’t looked back.
    It’s quite amazing when you look at it; gold is up almost six-fold over the last twelve years (16% CAGR), but people like cgh keep pooh-poohing it. Meanwhile, stocks (which, cgh will no doubt remind us, pay dividends. Yeah, yield on the SP500 is less than 2%. Wow.) have basically been flat over that time, real estate has gone down, and bonds pay next to nothing.
    All the gold ever mined amounts to about 6 billion ounces; one for every person on the planet. The total value of gold, gold mine stocks, etc. is less than one percent of all assets on the face of the earth.
    But, yeah, it’s in a bubble. Keep believing that, cgh. Clutch those pretty dollar bills in your hand. At least you’ll be able to wipe with them.

  36. Kevin, by all means cherish your delusions. And while you’re at it, please explain why every financial planner in the world and every futures investor advises never to have more than 10 per cent of your holdings in gold even now.
    In future, try not to misquote me. Nowhere in my post did I say that gold was in a bubble at this moment.
    And good luck eating those gold bars.

  37. All through history, precious metals have been the common currency. Just because your Gov’t. decided to abandon the Gold Standard doesn’t mean anything, other than there’s nothing but debt behind your paper currency. By all means, buy Gov’t Bonds(Debt); good luck with that.
    Gold is like the tide gauge at the beach (you need to be a saltchuck person to understand the significance. Everything rises and falls against the Gold standard. A three piece tailored suit costs the same as it always has…measured in oz’s of Gold. .

  39. cgh:
    I’m a financial advisor. I have people with 20-30% of their portfolios in precious metals. They’re doing great – much better than people who’ve been in the stock or bond markets.
    And you might try to increase your reading comprehension. Nowhere in my post did I quote you as saying gold was in a bubble.
    As for not eating gold – well, weren’t you advocating investing in cotton? Gotta admit, it’s got a lot of fibre, but not much else, nutrition wise.

  40. dunno how gold is going to help in the market collapse. No one will have money to buy it from you.
    can’t eat it either.

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