What he said.
You guys buying more silver now to offset your original purchases?
http://www.kitco.com/images/live/silver.gif
Jeff
Guessing were the bottom is on precious metals is a fol errand.
The trend is your friend and right now the trend is down
Or are you hanging on to cash? Here is a graph of the purchasing power of paper dollars.
PM’s aren’t for day traders who are stacking paper dollars. PM’s are an indestructible store of purchasing power and wealth. All paper currencies throughout history have gone to zero. The U.S. dollar is no exception (see my chart). The U.S. dollar has lost 99% of it’s purchasing power in 100 years.
Conversely, precious metals haven’t lost any purchasing power (especially when you include the premiums which spot price charts don’t include). 6,000 years ago an ounce of gold purchased about 400 loaves of bread. Today, an ounce of gold purchases about 400 loaves of bread.
If you mistakenly think the number of dollars you have is more important than purchasing power, I recommend you stop listening to your Edward Jones adviser and instead speak with a retiree on a fixed income.
Well GOLD sucks as an investment and there is no reason to believe its done falling.
If it doesn’t bounce soon it’s going to plunge below $1100
Good Luck.
It depends on how you value an asset: In number of dollars or purchasing power. Precious metals simply don’t lose purchasing power over time. All paper currencies do. Your grandfather could have left you a paper $20 bill or an ounce of gold back in the day. Which one do you prefer he had left you?
Let’s look at the two charts again:
When deflation happens GOLD will not save you.
There is no evidence of hyper inflation on the horizon.
Of course it will. Deflation means prices (in paper currencies) are going down. Deflation is when things become cheaper over time. Therefore the purchasing power of precious metals goes up. Not because one ounce turns into two, but because one ounce buys twice as much (if prices in paper currency deflate 50%).
Bernanke has stated he won’t let that happen anyway and said he would “drop $100 bills from helicopters” before that happens (and I believe him because in essence, he’s doing just that).
And there is no end to Bernanke’s printing (of paper) in sight. So if you want to preserve wealth and store it… you won’t be able to do it with paper. Unless Obama wakes up tomorrow and is no longer a racist who hates black people (not likely, he hates black folk), the Federal Reserve is going to continue printing which makes rich people richer and poor people poorer.
Gold is a hedge against inflation not deflation.
Of course it all depends on what you paid for it.
$1900 down to the current $1280 is a nasty loss.
A loss in what?
Its never a loss if you haven’t sold it…
I’d sure like to see it up over $100. I’ve got about 250 oz. taking up too much room in my safe 