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United States22883 Posts
On December 26 2010 07:33 gulati wrote:Show nested quote +On December 26 2010 07:28 Jibba wrote:
The absolute worst thing you could do is take financial advice from a random TeamLiquid poster, regardless of whether they tell you to buy gold, rocks or magic fairy dust.
Come on people... There is a difference between stating opinions and forcing you to buy something. This isn't seekingalpha.com, bro. Just helping out my community members with knowledge. P.S., don't ever buy an ETF without understanding the risks of them. They are a different animal than equities.
You didn't do anything wrong, but you have no reputation. It would be foolish for anyone here to listen to your advice regarding an investment. The same goes for everyone else giving advice. Anyone considering it is probably too ignorant to be able to judge whether it's credible or not.
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I wonder if one day fresh drinking water will be more valuable then oil once it runs out and pollution goes rampant in nature.
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On December 26 2010 07:40 ChaseR wrote:
I wonder if one day fresh drinking water will be more valuable then oil once it runs out and pollution goes rampant in nature.
Water costs more than Oil, actually. Calculate the price of Purified Drinking water (Poland Spring), versus a barrel of Crude Oil.
About ten years ago, investing into agricultural companies was a good idea, as the world population has went up one billion people over the last ten years. We are having a food and water crisis in this world. Energy and oil is important, but algorithms have already calculated and reached a finite conclusion that we will be running out of oil within another 30 or so years.
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On December 14 2010 07:51 Glacierz wrote:Show nested quote +On December 12 2010 13:23 Chylo wrote:
Random people asking if they should buy some random investment on a website totally unrelated to investing is a classic sign of a bubble. Smart people were buying gold in 2003, not now when random kids on starcraft forums think it's a good buy. Could you still make money in gold and could it still go up more? Yes, but the risk is quite high.
Also buying gold is not investing, it's speculating. Unless you understand the difference you shouldn't be buying either investments or speculative products. LOL this post is gold (no pun intended). Classic sign of bubble is when your average Joe neighbor starts telling you what stocks to invest in.
True. Gold will be a bubble at some time. But it is highly unlikely that that the bubble will burst in 2011. Why? Because then the global economy will habe to stabilizie completely in 2011, and making it really unlikely that high inflation will occur in the future.
However the opposite seems more likely. The global economy wont stabilize, debt and hence inflation will be a bigger risk, interest rates will go op --> gold price will rise. If 2011 is kind of status quo compared to 2010, people people will still fear inflation in 2012. The bubble wont burst till investors become sure there is no inflation risk, and that is unlikely in the short term, and in ther midterm I personally expect high inflation, making gold prices rise even more.
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what are you guys talkin about gold being a bubble at some point. gold has an actual value because it is rare. you dont even undestand the most basic simple thing. even marx would not disagree with that.
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On December 26 2010 07:59 leecH wrote:
what are you guys talkin about gold being a bubble at some point. gold has an actual value because it is rare. you dont even undestand the most basic simple thing. even marx would not disagree with that.
I, too, am rare. Even unique. Still, I am not very valuable monetarily. Hence, rarity alone does not create value but in combination with demand it does.
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On December 26 2010 08:43 Electric.Jesus wrote:Show nested quote +On December 26 2010 07:59 leecH wrote:
what are you guys talkin about gold being a bubble at some point. gold has an actual value because it is rare. you dont even undestand the most basic simple thing. even marx would not disagree with that. I, too, am rare. Even unique. Still, I am not very valuable monetarily.
i am speechless.
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On December 26 2010 07:43 gulati wrote:
Water costs more than Oil, actually. Calculate the price of Purified Drinking water (Poland Spring), versus a barrel of Crude Oil.
About ten years ago, investing into agricultural companies was a good idea, as the world population has went up one billion people over the last ten years. We are having a food and water crisis in this world. Energy and oil is important, but algorithms have already calculated and reached a finite conclusion that we will be running out of oil within another 30 or so years.
It's not a food and water crisis so much as a population crisis.
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On December 26 2010 08:43 Electric.Jesus wrote:Show nested quote +On December 26 2010 07:59 leecH wrote:
what are you guys talkin about gold being a bubble at some point. gold has an actual value because it is rare. you dont even undestand the most basic simple thing. even marx would not disagree with that. I, too, am rare. Even unique. Still, I am not very valuable monetarily. Hence, rarity alone does not create value but in combination with demand it does.
Actually you are valuable monetarily. Hence, life insurance.
And some people are more valuable than others. i.e a high profile athlete
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Personally, I wouldn't invest in Gold.
If gold drops just 5-10%, everyone with gold is gonna panic and sell it, and it'll crash. That's how bubbles work. lol
No that is not true.
As long as the U.S currency is put in doubt, Gold won't "bubble" up.
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Gold already has dropped more than 5% before , 5% of 1400 is only $70.
You can't compare Gold to housing , gold fluctuates more in a day than housing does in a month.
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On December 26 2010 07:59 leecH wrote:
what are you guys talkin about gold being a bubble at some point. gold has an actual value because it is rare. you dont even undestand the most basic simple thing. even marx would not disagree with that.
Just because its rare doesn't mean its valued at what it is priced at the moment.
The price of Gold today has nothing to do with "rareness".
1/3 of the price is based on its rareness.
2/3 of the price is based on a lot of debt worries especially the ones in Europe.
Of course that's a rough estimate, but the point being: a lot of the gold price is based on pure speculation.
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Honestly i think people just confuse the whole thing too much
fundamentally, we expect the price of gold to rise due to an increasing demand from emerging markets, no particular expectation in an increase supply, and an increase in demand from US and euro concerns
Thats basiscally what any analyst would tell you
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Obligatory Buffett quote here:
It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head. - Warren Buffett 1998 giving a speech at Harvard
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On December 26 2010 09:08 ShcShc wrote:Show nested quote +On December 26 2010 07:59 leecH wrote:
what are you guys talkin about gold being a bubble at some point. gold has an actual value because it is rare. you dont even undestand the most basic simple thing. even marx would not disagree with that. Just because its rare doesn't mean its valued at what it is priced at the moment. The price of Gold today has nothing to do with "rareness". 1/3 of the price is based on its rareness. 2/3 of the price is based on a lot of debt worries especially the ones in Europe. Of course that's a rough estimate, but the point being: a lot of the gold price is based on pure speculation.
i was not talking about the price of gold. i was talking about value. that gold always will have a certain amount of value due to its rareness. thats why it cant be considered a bubble. thats all. pretty simple statement based on principles everyone should understand and agree with.
and unless some alchemist tells me different i wont say anything more -_-
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On December 26 2010 07:43 gulati wrote:Show nested quote +On December 26 2010 07:40 ChaseR wrote:
I wonder if one day fresh drinking water will be more valuable then oil once it runs out and pollution goes rampant in nature. Water costs more than Oil, actually. Calculate the price of Purified Drinking water (Poland Spring), versus a barrel of Crude Oil. About ten years ago, investing into agricultural companies was a good idea, as the world population has went up one billion people over the last ten years. We are having a food and water crisis in this world. Energy and oil is important, but algorithms have already calculated and reached a finite conclusion that we will be running out of oil within another 30 or so years.
^This is propaganda garbage that has been fed to the green loving left wing for the last 10 years and has VERY little basis in what we call science.
Oil is finite, don't get me wrong. For the "algorithms" to correctly identify the amount of oil that is economically feasible to retrieve either we would have to understand the development of the Earth (for the last billion or 10k years whatever your slant is) which we have very little understanding of. I was thinking that the propaganda would be nullified a bit after the gulf oil spill (which they CLEARLY had NO IDEA how much oil was down there, and still don't) but people continue to believe what they are told by supposed experts on Ellen and Oprah. Don't forget about the huge Oil deposits that are being exposed courtesy of the receding ice caps Greenland ftw.
Anyways back on to the topic of the thread; I ended up putting all my savings into Gold back when it dropped back below 1k/ounce the second time, got most of it at about 720 which was good even though it continued to fall to around 650 at that point. I have almost made back my stock exchange losses and plan to get out of speculation all together when I break even and just invest in dividends. As for investing in Gold NOW I wouldn't recommend it honestly the price is likely to increase to around 1700 and then do a dive as people sell off for profit, IF I was in the market to buy I would buy at around 1100 and look to unload at around 2k, although if this is a retirement fund buy whenever, you will make at least 100% return in 25 years.
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For Christmas, my grandma gave me & my brother these gold stamps from '76. .8 ounces each, he got 3 gold and I was given 1 bronze, 1 gold 1 silver. Didn't realize how much they were worth at first as I'm awful at guessing how much things weigh ;o
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don't invest in gold. if you have it, sell it. please. FAST!
(please)
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The Austrian school economics obviously has som succes when the fiat currency systems are under fire. Of course those people take advantage by hyping gold. If you count in inflation and the fundamental problems of the US dollar one could argue that gold is worth the same as before. You could buy gold but don't invest solely in it.
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+ Show Spoiler +On December 12 2010 12:47 tx.zyclon wrote:Over the times gold has been worth much to many. Sifting through the internet on the price of an ounce of gold it has gone up consistently every year for atleast 50 years. Going from 20 dollars about 30 years ago to 1450ish in 2010. Many economists say that with the falling of the USD that gold may be worth up to 50,000 in a short while. If you guys had an extra 20,000 or even a 1,000 saved. Do you think it is a wise idea to invest in gold? Even if it doesn't go to 50,000 dollars, Even people 30 years ago who maybe spent 1000 dollars for 50 ounces of gold, can now trade it in for 70,000 dollars. ![[image loading]](http://img51.imageshack.us/img51/2170/goldalldataousd.png) Curious to hear your thoughts.
Long term it could be good if they don't find a way to create gold, which I suppose is a possibility? The reason it is so high right now is because during depressions people invest in gold to save their cash, making it go up. Gold will go back down once the economy is rolling again. Don't think it will go up as much as it has in the past 30 years.
When investing long term, which is the best way to invest, you have to take into account the reason why something is so high right now, as well as how inflation will effect your returns over time. Inflation and the current depression could make your investment inefficient.
+ Show Spoiler +On December 26 2010 07:34 Jibba wrote:Show nested quote +On December 26 2010 07:33 gulati wrote:On December 26 2010 07:28 Jibba wrote:
The absolute worst thing you could do is take financial advice from a random TeamLiquid poster, regardless of whether they tell you to buy gold, rocks or magic fairy dust.
Come on people... There is a difference between stating opinions and forcing you to buy something. This isn't seekingalpha.com, bro. Just helping out my community members with knowledge. P.S., don't ever buy an ETF without understanding the risks of them. They are a different animal than equities. You didn't do anything wrong, but you have no reputation. It would be foolish for anyone here to listen to your advice regarding an investment. The same goes for everyone else giving advice. Anyone considering it is probably too ignorant to be able to judge whether it's credible or not.
Sure it would be silly to make a poll on tl and decide based off of it, but I think he posted this more for the debate then the actual advice. And even if it is for advice, he can pick and choose which makes sense based on how they explain themselves.
Reputation isn't everything.
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EPT![[image loading]](http://img51.imageshack.us/i/goldalldataousd.png/)
