GOLD or COMICS - Which will be the better investment?

[t3quila]

You can make money from Comics? mess I have been doing it wrong for 6 months

[Agent 007]

I would not suggest gold. Once the common person knows where to go it is to late. If you aren't in it, you missed the ride up. But for sure you will have the ride down. Look and research other precious metals and look for ETF's or Ishares instead of holding the real thing. I do this for a living. This is not advice but general ideas for you to look into. I am only registered in CA to give advice. Please consult your financial advisor or Series 7 broker.

[RockMyAmadeus]

what if you buy gold comics?

 

 

 

"There's ACTUAL GOLD...ON....THE....BOOK!!!!!"

 

"Right there, ON THE BOOK!!!"

[VintageComics]

Long-term, I think gold will do fine, even from these levels. Short-term, it is caught up in the same liquidity mini-bubble that is propelling stocks, bonds and commodities higher and higher. That won't last forever, however, and when it ends, gold will not be immune from the ensuing correction. The question is, though, from what level will it correct?

 

Richard Russell of Dow Theory Letters makes an eloquent case for the long-term gold outlook:

 

 

Today our creditors, mainly China, know that the US cannot possibly solve its huge unfunded debt problems the honest way by cutting back on spending and saving. But wait, there is one exception, the US could solve its debt problem with its overseas creditors by reneging on its debts or by devaluing the dollar. The idea of either of those "solutions" strikes fear in the heart of our creditors. And they ask themselves, "How good is the full faith and credit of the United States?" And they answer their own questions. Their answer is that "We better diversify OUT of dollars." One way to diversify is to buy items of intrinsic value: real estate, mines, corporations, silver, platinum and particularly -- gold.

 

The Big Question -- Why gold? Example -- Let's say you're a multimillionaire. You're seriously worried about what to do with your millions in savings. You don't want to keep your money under your mattress or in your Frigidaire, so where should you keep it? US T-bills are now in a state of zero or even negative interest -- you pay the government to hold your money, but you're SAFE. T-bills have behind them the full faith and credit of the United States. Great, but, now you're thinking the unthinkable -- How good is the full faith and credit of the US? There are rumors that the credit rating of the US could actually be lowered. And with the massive unfunded debt of the US, that could happen, and worse -- the dollar could cave in. What to do?

 

And you ask yourself, "What's safer than T-bills or even top-grade foreign short-term debt?" The answer is that there is one item that's safer -- gold. Gold represents intrinsic value in and of itself and by itself. Gold needs no nation to back or guarantee its value. Gold is no single nation's liability. Furthermore, gold has no maturity date and gold is so safe that it doesn't need to pay interest to those who hold it. You decide to put your savings into gold rather than T-bills. And unlike T-bills today, gold doesn't depend on anyone's "full faith and credit."

 

The fact is that the so-called "opportunity cost" of buying or holding gold is zero today. T-bills pay you nothing; The fact is that it's cheaper, safer, and it makes more sense to hold gold at this time than at almost any time in my memory. And a lot of knowledgeable, big money investors are doing just that -- buying and holding gold for safety and as a store of value.

 

 

Again, that does NOT make gold immune to corrections, even potentially severe ones, especially since this liquidity boomlet is taking up ALL asset values indiscriminately. But, it does make a lot of sense if your time horizon is long enough. I don't know about you guys, but I just can't get that same sense of security from owning a bunch of comic books. There may be a reasonably liquid market for (some) comics now, but if things get really, really bad, there will always be a market for your gold - not sure that will be true for comics.

 

Gene, that is a great post. I wanted to say something similar but you did a much better job.

 

I just wanted to add that Gold (and to a lesser degree Silver) is not really an considered an investment as much as it is a store of wealth.

 

Even if it corrects (ie drops down or rises sharply), it is always going to have some value and will be considered true money in any nation on the planet just as it has been for 1000's of years.

 

I heard a short anecdote that helped me realize these points when I was learning about gold.

 

Two thousand years ago 1 ounce of gold would buy you a good quality suit, a belt, a pair of decent shoes.

 

In the middle ages 1 ounce of gold would buy you a good quality suit, a belt, a pair of decent shoes.

 

Today 1 ounce of gold will buy you a good quality suit, a belt, a pair of decent shoes.

 

The meaning is that gold has always held it's value relative to other unchangeable goods. It's only the value of the money relative to the gold that actually changes in value.

 

If gold gets more expensive it's because the dollar is worth less and it takes more dollars to buy that same amount of gold.

[FlyingDonut]

Well, the serious answer is crack. If you can buy cocaine at the source, your markup is staggering.

[VintageComics]

Well, the serious answer is crack. If you can buy cocaine at the source, your markup is staggering.

 

How about if you pay with gold. Will they take gold as payment?

[FlyingDonut]

Well, the serious answer is crack. If you can buy cocaine at the source, your markup is staggering.

 

How about if you pay with gold. Will they take gold as payment?

 

Probably, but dollars are most likely more liquid.

[campued1010]

Rule of thumb is max 10% of your portfolio should be in gold. It is the most proven commodity to retain purchasing power as mentioned by Roy. I have gone to countless presentations by the so called experts and recent estimates are gold will settle in at $900 to upwards of 1850 an ounce. What I did find very interesting is most proponents of gold prefer to hold the actual gold as opposed to ETFs or gold company stocks. I know the reason for gold stocks has to do with the fact that some of these companies have hedge contracts that don't always work in their favour. I think I recall Barrick Gold 5 years ago had a contract in place to sell gold at $350/once when the spot rate was close to $450.

 

If you expect interest rates to rise, your only hedge will be gold and real estate. While gold has had a great run the past couple of years, real estate has dropped dramatically and may present a better opportunity.

[Sqeggs]

Long-term, I think gold will do fine, even from these levels. Short-term, it is caught up in the same liquidity mini-bubble that is propelling stocks, bonds and commodities higher and higher. That won't last forever, however, and when it ends, gold will not be immune from the ensuing correction. The question is, though, from what level will it correct?

 

Richard Russell of Dow Theory Letters makes an eloquent case for the long-term gold outlook:

 

 

Today our creditors, mainly China, know that the US cannot possibly solve its huge unfunded debt problems the honest way by cutting back on spending and saving. But wait, there is one exception, the US could solve its debt problem with its overseas creditors by reneging on its debts or by devaluing the dollar. The idea of either of those "solutions" strikes fear in the heart of our creditors. And they ask themselves, "How good is the full faith and credit of the United States?" And they answer their own questions. Their answer is that "We better diversify OUT of dollars." One way to diversify is to buy items of intrinsic value: real estate, mines, corporations, silver, platinum and particularly -- gold.

 

The Big Question -- Why gold? Example -- Let's say you're a multimillionaire. You're seriously worried about what to do with your millions in savings. You don't want to keep your money under your mattress or in your Frigidaire, so where should you keep it? US T-bills are now in a state of zero or even negative interest -- you pay the government to hold your money, but you're SAFE. T-bills have behind them the full faith and credit of the United States. Great, but, now you're thinking the unthinkable -- How good is the full faith and credit of the US? There are rumors that the credit rating of the US could actually be lowered. And with the massive unfunded debt of the US, that could happen, and worse -- the dollar could cave in. What to do?

 

And you ask yourself, "What's safer than T-bills or even top-grade foreign short-term debt?" The answer is that there is one item that's safer -- gold. Gold represents intrinsic value in and of itself and by itself. Gold needs no nation to back or guarantee its value. Gold is no single nation's liability. Furthermore, gold has no maturity date and gold is so safe that it doesn't need to pay interest to those who hold it. You decide to put your savings into gold rather than T-bills. And unlike T-bills today, gold doesn't depend on anyone's "full faith and credit."

 

The fact is that the so-called "opportunity cost" of buying or holding gold is zero today. T-bills pay you nothing; The fact is that it's cheaper, safer, and it makes more sense to hold gold at this time than at almost any time in my memory. And a lot of knowledgeable, big money investors are doing just that -- buying and holding gold for safety and as a store of value.

 

 

Again, that does NOT make gold immune to corrections, even potentially severe ones, especially since this liquidity boomlet is taking up ALL asset values indiscriminately. But, it does make a lot of sense if your time horizon is long enough. I don't know about you guys, but I just can't get that same sense of security from owning a bunch of comic books. There may be a reasonably liquid market for (some) comics now, but if things get really, really bad, there will always be a market for your gold - not sure that will be true for comics.

 

Actually, gold's intrinsic value is its value in jewelry or for industrial purposes. The likelihood of that intrinsic value rising much is quite small, unless some unknown new industrial use is developed. The price of gold above that intrinsic value represents investors trying to hedge the risk of inflation. Gold's track record as an inflation hedge since the early 1970s has been spotty. Stocks, of course, also have intrinsic value because they represent claims on the assets and profits of firms. Long-run, the earnings of corporations in the U.S. and elsewhere will continue to increase, while gold will sit there just being ... gold. A buy-and-hold strategy with comics is almost certain to be a loser for reasons that I and others have gone into in other threads. I suppose that people who are plugged in well enough to exploit temporary blips in some books can make some money, but the days of expecting long-run, steady appreciation on high grade SA and GA keys are likely over.

[thehumantorch]

Gold.

[thirdgreenham]

I would not suggest gold. Once the common person knows where to go it is to late. If you aren't in it, you missed the ride up. But for sure you will have the ride down. Look and research other precious metals and look for ETF's or Ishares instead of holding the real thing. I do this for a living. This is not advice but general ideas for you to look into. I am only registered in CA to give advice. Please consult your financial advisor or Series 7 broker.

 

...and I would recommend holding the physical metal itself, not ETFs and not "virtual" or "paper" gold. I wouldn't purchase it through the banks or any venue where they're taking your name and information. The less anyone, including big brother, knows about what you own, the better. Personally, I wouldn't be keeping in any bank's safety deposit box either.

 

In my mind, buying physical gold and silver is the ONLY way to buy it. (thumbs u

 

Andy

[qualitycomix]

Long-term, I think gold will do fine, even from these levels. Short-term, it is caught up in the same liquidity mini-bubble that is propelling stocks, bonds and commodities higher and higher. That won't last forever, however, and when it ends, gold will not be immune from the ensuing correction. The question is, though, from what level will it correct?

 

Richard Russell of Dow Theory Letters makes an eloquent case for the long-term gold outlook:

 

 

Today our creditors, mainly China, know that the US cannot possibly solve its huge unfunded debt problems the honest way by cutting back on spending and saving. But wait, there is one exception, the US could solve its debt problem with its overseas creditors by reneging on its debts or by devaluing the dollar. The idea of either of those "solutions" strikes fear in the heart of our creditors. And they ask themselves, "How good is the full faith and credit of the United States?" And they answer their own questions. Their answer is that "We better diversify OUT of dollars." One way to diversify is to buy items of intrinsic value: real estate, mines, corporations, silver, platinum and particularly -- gold.

 

The Big Question -- Why gold? Example -- Let's say you're a multimillionaire. You're seriously worried about what to do with your millions in savings. You don't want to keep your money under your mattress or in your Frigidaire, so where should you keep it? US T-bills are now in a state of zero or even negative interest -- you pay the government to hold your money, but you're SAFE. T-bills have behind them the full faith and credit of the United States. Great, but, now you're thinking the unthinkable -- How good is the full faith and credit of the US? There are rumors that the credit rating of the US could actually be lowered. And with the massive unfunded debt of the US, that could happen, and worse -- the dollar could cave in. What to do?

 

And you ask yourself, "What's safer than T-bills or even top-grade foreign short-term debt?" The answer is that there is one item that's safer -- gold. Gold represents intrinsic value in and of itself and by itself. Gold needs no nation to back or guarantee its value. Gold is no single nation's liability. Furthermore, gold has no maturity date and gold is so safe that it doesn't need to pay interest to those who hold it. You decide to put your savings into gold rather than T-bills. And unlike T-bills today, gold doesn't depend on anyone's "full faith and credit."

 

The fact is that the so-called "opportunity cost" of buying or holding gold is zero today. T-bills pay you nothing; The fact is that it's cheaper, safer, and it makes more sense to hold gold at this time than at almost any time in my memory. And a lot of knowledgeable, big money investors are doing just that -- buying and holding gold for safety and as a store of value.

 

 

Again, that does NOT make gold immune to corrections, even potentially severe ones, especially since this liquidity boomlet is taking up ALL asset values indiscriminately. But, it does make a lot of sense if your time horizon is long enough. I don't know about you guys, but I just can't get that same sense of security from owning a bunch of comic books. There may be a reasonably liquid market for (some) comics now, but if things get really, really bad, there will always be a market for your gold - not sure that will be true for comics.

 

Gene, that is a great post. I wanted to say something similar but you did a much better job.

 

I just wanted to add that Gold (and to a lesser degree Silver) is not really an considered an investment as much as it is a store of wealth.

 

Even if it corrects (ie drops down or rises sharply), it is always going to have some value and will be considered true money in any nation on the planet just as it has been for 1000's of years.

 

I heard a short anecdote that helped me realize these points when I was learning about gold.

 

Two thousand years ago 1 ounce of gold would buy you a good quality suit, a belt, a pair of decent shoes.

 

In the middle ages 1 ounce of gold would buy you a good quality suit, a belt, a pair of decent shoes.

 

Today 1 ounce of gold will buy you a good quality suit, a belt, a pair of decent shoes.

 

The meaning is that gold has always held it's value relative to other unchangeable goods. It's only the value of the money relative to the gold that actually changes in value.

 

If gold gets more expensive it's because the dollar is worth less and it takes more dollars to buy that same amount of gold.

 

Exactly. Gold preserves wealth. Fiat currencies erode it.

 

As far as investing in Gold ETFs, I would advise against it. You better be darn sure that the fund actually has the gold on hand to back up what you are supposedly buying.

 

Buying Gold ETFs defeats the whole purpose of owning gold in the first place. With gold there is no counterparty risk. With Gold ETFs, there is just as much risk as the fiat currencies that some would avoid.

 

Those who think that gold is in a bubble do not understand the fundamental dynamics of what gold truly represents. As Roy and Gene have said, the 'bubble' is just representative of what the dollar is currently doing (and other fiat currencies). World governments are inflating their currencies desperately trying the reflate the leaky balloon that is the world economy.

 

Why do you think the stock market has jumped over 50% in less than a year? Market fundamentals? Nah. Trillions of dollars being pumped into the economy via banks, mortgage backed securities and T-Bills? Yup. The money you think you're making in the market is offset by the dollar's steady decline.

[qualitycomix]

I would not suggest gold. Once the common person knows where to go it is to late. If you aren't in it, you missed the ride up. But for sure you will have the ride down. Look and research other precious metals and look for ETF's or Ishares instead of holding the real thing. I do this for a living. This is not advice but general ideas for you to look into. I am only registered in CA to give advice. Please consult your financial advisor or Series 7 broker.

 

...and I would recommend holding the physical metal itself, not ETFs and not "virtual" or "paper" gold. I wouldn't purchase it through the banks or any venue where they're taking your name and information. The less anyone, including big brother, knows about what you own, the better. Personally, I wouldn't be keeping in any bank's safety deposit box either.

 

In my mind, buying physical gold and silver is the ONLY way to buy it. (thumbs u

 

Andy

 

[Subliminal]

what if you buy gold comics?

 

 

 

"There's ACTUAL GOLD...ON....THE....BOOK!!!!!"

 

"Right there, ON THE BOOK!!!"

 

It's fools gold

[tylerdurden-migration]

Interesting Read if only to appreciate how un-educated some of you are

 

The other half has it right on the money

 

Stick with Hard Assets and you will be fine

 

This is no bubble in Gold

 

It is the real thing

[Aman619]

Long-term, I think gold will do fine, even from these levels. Short-term, it is caught up in the same liquidity mini-bubble that is propelling stocks, bonds and commodities higher and higher. That won't last forever, however, and when it ends, gold will not be immune from the ensuing correction. The question is, though, from what level will it correct?

 

Richard Russell of Dow Theory Letters makes an eloquent case for the long-term gold outlook:

 

 

Today our creditors, mainly China, know that the US cannot possibly solve its huge unfunded debt problems the honest way by cutting back on spending and saving. But wait, there is one exception, the US could solve its debt problem with its overseas creditors by reneging on its debts or by devaluing the dollar. The idea of either of those "solutions" strikes fear in the heart of our creditors. And they ask themselves, "How good is the full faith and credit of the United States?" And they answer their own questions. Their answer is that "We better diversify OUT of dollars." One way to diversify is to buy items of intrinsic value: real estate, mines, corporations, silver, platinum and particularly -- gold.

 

The Big Question -- Why gold? Example -- Let's say you're a multimillionaire. You're seriously worried about what to do with your millions in savings. You don't want to keep your money under your mattress or in your Frigidaire, so where should you keep it? US T-bills are now in a state of zero or even negative interest -- you pay the government to hold your money, but you're SAFE. T-bills have behind them the full faith and credit of the United States. Great, but, now you're thinking the unthinkable -- How good is the full faith and credit of the US? There are rumors that the credit rating of the US could actually be lowered. And with the massive unfunded debt of the US, that could happen, and worse -- the dollar could cave in. What to do?

 

And you ask yourself, "What's safer than T-bills or even top-grade foreign short-term debt?" The answer is that there is one item that's safer -- gold. Gold represents intrinsic value in and of itself and by itself. Gold needs no nation to back or guarantee its value. Gold is no single nation's liability. Furthermore, gold has no maturity date and gold is so safe that it doesn't need to pay interest to those who hold it. You decide to put your savings into gold rather than T-bills. And unlike T-bills today, gold doesn't depend on anyone's "full faith and credit."

 

The fact is that the so-called "opportunity cost" of buying or holding gold is zero today. T-bills pay you nothing; The fact is that it's cheaper, safer, and it makes more sense to hold gold at this time than at almost any time in my memory. And a lot of knowledgeable, big money investors are doing just that -- buying and holding gold for safety and as a store of value.

 

 

Again, that does NOT make gold immune to corrections, even potentially severe ones, especially since this liquidity boomlet is taking up ALL asset values indiscriminately. But, it does make a lot of sense if your time horizon is long enough. I don't know about you guys, but I just can't get that same sense of security from owning a bunch of comic books. There may be a reasonably liquid market for (some) comics now, but if things get really, really bad, there will always be a market for your gold - not sure that will be true for comics.

 

Gene, that is a great post. I wanted to say something similar but you did a much better job.

 

I just wanted to add that Gold (and to a lesser degree Silver) is not really an considered an investment as much as it is a store of wealth.

 

Even if it corrects (ie drops down or rises sharply), it is always going to have some value and will be considered true money in any nation on the planet just as it has been for 1000's of years.

 

I heard a short anecdote that helped me realize these points when I was learning about gold.

 

Two thousand years ago 1 ounce of gold would buy you a good quality suit, a belt, a pair of decent shoes.

 

In the middle ages 1 ounce of gold would buy you a good quality suit, a belt, a pair of decent shoes.

 

Today 1 ounce of gold will buy you a good quality suit, a belt, a pair of decent shoes.

 

The meaning is that gold has always held it's value relative to other unchangeable goods. It's only the value of the money relative to the gold that actually changes in value.

 

If gold gets more expensive it's because the dollar is worth less and it takes more dollars to buy that same amount of gold.

 

sounds good, but the price fo a suit covers a lot of ground, doesnt it? There's 3 for $400 at Mens wearhouse up to a 5000 bespoke tailored suit. Got a comparison to a commodity thats got a narrower pricing range? Gallon of milk maybe?

[kimik]

Long-term, I think gold will do fine, even from these levels. Short-term, it is caught up in the same liquidity mini-bubble that is propelling stocks, bonds and commodities higher and higher. That won't last forever, however, and when it ends, gold will not be immune from the ensuing correction. The question is, though, from what level will it correct?

 

Richard Russell of Dow Theory Letters makes an eloquent case for the long-term gold outlook:

 

 

Today our creditors, mainly China, know that the US cannot possibly solve its huge unfunded debt problems the honest way by cutting back on spending and saving. But wait, there is one exception, the US could solve its debt problem with its overseas creditors by reneging on its debts or by devaluing the dollar. The idea of either of those "solutions" strikes fear in the heart of our creditors. And they ask themselves, "How good is the full faith and credit of the United States?" And they answer their own questions. Their answer is that "We better diversify OUT of dollars." One way to diversify is to buy items of intrinsic value: real estate, mines, corporations, silver, platinum and particularly -- gold.

 

The Big Question -- Why gold? Example -- Let's say you're a multimillionaire. You're seriously worried about what to do with your millions in savings. You don't want to keep your money under your mattress or in your Frigidaire, so where should you keep it? US T-bills are now in a state of zero or even negative interest -- you pay the government to hold your money, but you're SAFE. T-bills have behind them the full faith and credit of the United States. Great, but, now you're thinking the unthinkable -- How good is the full faith and credit of the US? There are rumors that the credit rating of the US could actually be lowered. And with the massive unfunded debt of the US, that could happen, and worse -- the dollar could cave in. What to do?

 

And you ask yourself, "What's safer than T-bills or even top-grade foreign short-term debt?" The answer is that there is one item that's safer -- gold. Gold represents intrinsic value in and of itself and by itself. Gold needs no nation to back or guarantee its value. Gold is no single nation's liability. Furthermore, gold has no maturity date and gold is so safe that it doesn't need to pay interest to those who hold it. You decide to put your savings into gold rather than T-bills. And unlike T-bills today, gold doesn't depend on anyone's "full faith and credit."

 

The fact is that the so-called "opportunity cost" of buying or holding gold is zero today. T-bills pay you nothing; The fact is that it's cheaper, safer, and it makes more sense to hold gold at this time than at almost any time in my memory. And a lot of knowledgeable, big money investors are doing just that -- buying and holding gold for safety and as a store of value.

 

 

Again, that does NOT make gold immune to corrections, even potentially severe ones, especially since this liquidity boomlet is taking up ALL asset values indiscriminately. But, it does make a lot of sense if your time horizon is long enough. I don't know about you guys, but I just can't get that same sense of security from owning a bunch of comic books. There may be a reasonably liquid market for (some) comics now, but if things get really, really bad, there will always be a market for your gold - not sure that will be true for comics.

 

Gene, that is a great post. I wanted to say something similar but you did a much better job.

 

I just wanted to add that Gold (and to a lesser degree Silver) is not really an considered an investment as much as it is a store of wealth.

 

Even if it corrects (ie drops down or rises sharply), it is always going to have some value and will be considered true money in any nation on the planet just as it has been for 1000's of years.

 

I heard a short anecdote that helped me realize these points when I was learning about gold.

 

Two thousand years ago 1 ounce of gold would buy you a good quality suit, a belt, a pair of decent shoes.

 

In the middle ages 1 ounce of gold would buy you a good quality suit, a belt, a pair of decent shoes.

 

Today 1 ounce of gold will buy you a good quality suit, a belt, a pair of decent shoes.

 

The meaning is that gold has always held it's value relative to other unchangeable goods. It's only the value of the money relative to the gold that actually changes in value.

 

If gold gets more expensive it's because the dollar is worth less and it takes more dollars to buy that same amount of gold.

 

sounds good, but the price fo a suit covers a lot of ground, doesnt it? There's 3 for $400 at Mens wearhouse up to a 5000 bespoke tailored suit. Got a comparison to a commodity thats got a narrower pricing range? Gallon of milk maybe?

 

Are you looking for something like this - 1 oz of gold would get you 2 or so cows 2000 years and it still gets the same now?

[4GEMWORKS]

Long-term, I think gold will do fine, even from these levels. Short-term, it is caught up in the same liquidity mini-bubble that is propelling stocks, bonds and commodities higher and higher. That won't last forever, however, and when it ends, gold will not be immune from the ensuing correction. The question is, though, from what level will it correct?

 

Richard Russell of Dow Theory Letters makes an eloquent case for the long-term gold outlook:

 

 

Today our creditors, mainly China, know that the US cannot possibly solve its huge unfunded debt problems the honest way by cutting back on spending and saving. But wait, there is one exception, the US could solve its debt problem with its overseas creditors by reneging on its debts or by devaluing the dollar. The idea of either of those "solutions" strikes fear in the heart of our creditors. And they ask themselves, "How good is the full faith and credit of the United States?" And they answer their own questions. Their answer is that "We better diversify OUT of dollars." One way to diversify is to buy items of intrinsic value: real estate, mines, corporations, silver, platinum and particularly -- gold.

 

The Big Question -- Why gold? Example -- Let's say you're a multimillionaire. You're seriously worried about what to do with your millions in savings. You don't want to keep your money under your mattress or in your Frigidaire, so where should you keep it? US T-bills are now in a state of zero or even negative interest -- you pay the government to hold your money, but you're SAFE. T-bills have behind them the full faith and credit of the United States. Great, but, now you're thinking the unthinkable -- How good is the full faith and credit of the US? There are rumors that the credit rating of the US could actually be lowered. And with the massive unfunded debt of the US, that could happen, and worse -- the dollar could cave in. What to do?

 

And you ask yourself, "What's safer than T-bills or even top-grade foreign short-term debt?" The answer is that there is one item that's safer -- gold. Gold represents intrinsic value in and of itself and by itself. Gold needs no nation to back or guarantee its value. Gold is no single nation's liability. Furthermore, gold has no maturity date and gold is so safe that it doesn't need to pay interest to those who hold it. You decide to put your savings into gold rather than T-bills. And unlike T-bills today, gold doesn't depend on anyone's "full faith and credit."

 

The fact is that the so-called "opportunity cost" of buying or holding gold is zero today. T-bills pay you nothing; The fact is that it's cheaper, safer, and it makes more sense to hold gold at this time than at almost any time in my memory. And a lot of knowledgeable, big money investors are doing just that -- buying and holding gold for safety and as a store of value.

 

 

Again, that does NOT make gold immune to corrections, even potentially severe ones, especially since this liquidity boomlet is taking up ALL asset values indiscriminately. But, it does make a lot of sense if your time horizon is long enough. I don't know about you guys, but I just can't get that same sense of security from owning a bunch of comic books. There may be a reasonably liquid market for (some) comics now, but if things get really, really bad, there will always be a market for your gold - not sure that will be true for comics.

 

I'm heartened to see readers of Richard Russell in here.

 

Think about this: It has been said for years that an ounce of gold is enough to buy a fine mens suit. This has been true for at least a couple hundred years. Is gold telling us that a suit will soon go from $800 to $1200 or more?

 

Gold is telling a dire story about the economy right now. It is a problem to be feared by most people and tells the story of a dollar that may not only plunge, but possibly lose its reserve staus as nations run away from dollars into gold. One reason for strong gold of late is that India bought 200 metric tons of gold at the current high levels and wants to buy 200 more tons.

 

Inflation could be a real problem. Here is another quote from Richard Russell a couple of weeks ago. It's one of my all time favorites:

 

"I like to keep it simple, and I like to understand the fundamentals. So here goes. The Fed and the other central banks can create "money" out of thin air. By now, everybody on earth knows that. People also figure that if it's an item that can be created without work and through an accounting entry, it can't be real money, rather it's simply a brand of "Monopoly money".

 

OK, then how about this? You can take the phoney money that the Fed creates and you can actually buy something real with it. That "real something" can be gold or it can be a foreclosed home or it can be top-grade stocks like the thirty stocks that make up the Dow. Trade Fed-created junk for something real? Why not, it certainly makes a lot of sense." (dowtheoryletters.com/)

 

I guess that real something could be "blue chip" comic books as well. Problem with comics is that not just anybody will buy them. Anybody will buy gold.

 

 

[He11blazer]

Comics.

 

You just know that any day now they're going to find a way to manufacture gold, probably by bombarding CO2 in the LHC, thus putting an end to climate change at the same time

 

Isn't there in interminable thread about gold in the WC?

[dekeuk]

 

 

You just know that any day now they're going to find a way to manufacture gold, probably by bombarding CO2 in the LHC, thus putting an end to climate change at the same time

 

 

 

As I recall, this guy was working on making his own gold:

 

 

 

The US population was smart in a weird sort of way. Everyone lived well beyond their means for 60 years and let the rest of the world finance that lifestyle. Now that is coming to an end.

 

The dollar is being devalued, which will melt away all that US denominated national debt. There will be a huge upheaval now, but what's 5 years of pain in return for 60 years of living beyond your means.

 

The real problem will become oil prices. If the US dollar keeps being devalued, OPEC will start only selling oil for gold, for Euro, or for a basket of currencies including the US dollar. Iran and Venezuela would do this tomorrow if they could. And if that were to happen, the USA would have trouble paying for the oil they want.