Collecting Gold

The reason I buy gold as a part of my portfolio is as a hedge against
inflation. As the previous poster was saying, there are times where a
country's currency will turn to poo but gold will still maintain it's value.

"gogu" wrote in message
...
? "Rick" ?????? ??? ??????
oups.com...
On Jul 9, 12:05 am, "Himself" wrote:
Ok somebody has to explain this to me like I am friggin' six year old.
You
buy gold bullion as a investment. When do you reap the rewards of your
investment? How do you reap the rewards of your investment? Let say that
you
bought gold say in 1956 because the world was going to be destroyed by
nuclear war and money would not be worth anything. So you have this
stockpile of gold. Great! Now What? All right it's 2007 and you sell
your
gold, which you bought at 34 dollar an ounce for 677 dollar and ounce.
Now
you have mad a profit, over 51 years. Hey Bubba you could have done 10
times
that in the friggin stock market. So hoarding gold is good why? Explain
it
to me Lucy.


Historically gold has always held some value. The same cannot be said
for stocks. Many recommend placing a portion of your investment
portfolio in gold, but not the whole thing. Diversity is usually
best. However, if society collapses--TEOTWAWKI--food, tools, fuel,
and other necessities will be what is traded.

Here in old Europe we have a precedent.
During the nazi occupation 1940-1944 money lost its value and we saw
banknotes expressed in...millions:-)
The only thing that held its value and permitted people to survive was,
guess what, gold!
My grandfather used to tell me that in those dark years with 2-3
sovereigns
a family of 4 could survive for about a month...
So I suppose it's safe to say that gold is not much of an investment but
it's the only thing that will hold its value in the case of a war, foreign
occupation and/or similar.
Now how possible is this to happen, well, that's another discussion;-)

rgrds

PS
As for what is the safest investment I can only say what an old, wise
Jew
said to my father several years ago!
My father asked him what's the best and most secure investment for his
extra
money.
That old Jewish gentleman -may G-d rest his soul, he was a wonderful
person-
didn't answer right away and we thought he didn't hear what my father
asked.
After several minutes he said: "look my friend, it's good to have some
gold,
some British pounds, some Marks, some Franks and some stocks":-)))
At that tike I thought his answer was rather simplistic but later I
understood that he was dead right, today we call it spread of risk;-)

--

E' mai possibile, oh porco di un cane, che le avventure
in codesto reame debban risolversi tutte con grandi
puttane! F.d.A

Coins, travels and mo http://pg.photos.yahoo.com/ph/golanule/my_photos
http://gogu.enosi.org/index.html

Rick

On Jul 9, 12:05 am, "Himself" wrote:
Ok somebody has to explain this to me like I am friggin' six year old. You
buy gold bullion as a investment. When do you reap the rewards of your
investment? How do you reap the rewards of your investment? Let say that you
bought gold say in 1956 because the world was going to be destroyed by
nuclear war and money would not be worth anything. So you have this
stockpile of gold. Great! Now What? All right it's 2007 and you sell your
gold, which you bought at 34 dollar an ounce for 677 dollar and ounce. Now
you have mad a profit, over 51 years. Hey Bubba you could have done 10 times
that in the friggin stock market. So hoarding gold is good why? Explain it
to me Lucy.


Gold stores wealth. Stocks generally can outperform gold, but can
also fall to zero. Paper money can be inflated to the point that
one's life savings is wiped out. 1,000,000 German marks was once
about 9,500 ounces of gold. After World War I, it took that much to
mail a letter.


http://i3.ebayimg.com/06/i/000/a8/a2/1b2f_1.JPG

Ï "Andy" Ýãñáøå óôï ìÞíõìá
...
The reason I buy gold as a part of my portfolio is as a hedge against
inflation.

Well, the original poster said "buy gold bullion as a investment" and this
is another think:-)
Anyway, even as a security against inflation gold is not so bright.
Think that for years (if not decades) its price was stacked at around
$260.00-$290.00...
Only about a year or so ago it went up at around $645.00 and sits there.
IMHO this is nothing of a security against inflation.
I repeat, I see gold only as a security against extreme situations as war,
foreign occupation or a 1929-like crash.

As the previous poster was saying, there are times where a country's
currency will turn to poo but gold will still maintain it's value.

Let me disagree but this is not the space to make an economics' analysis:-)
IMHO the currency of the one (if not the onlone) of the super-powers could
never
possibly turn in...pooh:-)
But as I said I understand to have some gold, if not for investment because
it's beautiful to look at it;-)

rgrds

--

E' mai possibile, oh porco di un cane, che le avventure
in codesto reame debban risolversi tutte con grandi
puttane! F.d.A

Coins, travels and mo http://pg.photos.yahoo.com/ph/golanule/my_photos
http://gogu.enosi.org/index.html

"gogu" wrote in message
...
? "Rick" ?????? ??? ??????
oups.com...
On Jul 9, 12:05 am, "Himself" wrote:
Ok somebody has to explain this to me like I am friggin' six year old.
You
buy gold bullion as a investment. When do you reap the rewards of your
investment? How do you reap the rewards of your investment? Let say
that
you
bought gold say in 1956 because the world was going to be destroyed by
nuclear war and money would not be worth anything. So you have this
stockpile of gold. Great! Now What? All right it's 2007 and you sell
your
gold, which you bought at 34 dollar an ounce for 677 dollar and ounce.
Now
you have mad a profit, over 51 years. Hey Bubba you could have done 10
times
that in the friggin stock market. So hoarding gold is good why? Explain
it
to me Lucy.


Historically gold has always held some value. The same cannot be said
for stocks. Many recommend placing a portion of your investment
portfolio in gold, but not the whole thing. Diversity is usually
best. However, if society collapses--TEOTWAWKI--food, tools, fuel,
and other necessities will be what is traded.

Here in old Europe we have a precedent.
During the nazi occupation 1940-1944 money lost its value and we saw
banknotes expressed in...millions:-)
The only thing that held its value and permitted people to survive was,
guess what, gold!
My grandfather used to tell me that in those dark years with 2-3
sovereigns
a family of 4 could survive for about a month...
So I suppose it's safe to say that gold is not much of an investment but
it's the only thing that will hold its value in the case of a war,
foreign
occupation and/or similar.
Now how possible is this to happen, well, that's another discussion;-)

rgrds

PS
As for what is the safest investment I can only say what an old, wise
Jew
said to my father several years ago!
My father asked him what's the best and most secure investment for his
extra
money.
That old Jewish gentleman -may G-d rest his soul, he was a wonderful
person-
didn't answer right away and we thought he didn't hear what my father
asked.
After several minutes he said: "look my friend, it's good to have some
gold,
some British pounds, some Marks, some Franks and some stocks":-)))
At that tike I thought his answer was rather simplistic but later I
understood that he was dead right, today we call it spread of risk;-)

In article ,
says...
Ok somebody has to explain this to me like I am friggin' six year old. You
buy gold bullion as a investment.


Well, I only have silver at the moment. Lower budget, but on the
same principle.


When do you reap the rewards of your investment?


That happens in one of three scenarios:

1. You sell some of the gold for regular money, to buy other
stuff. This works best when your selling price is higher than
your buying price was.

2. You trade the gold for something else that you want or need
more. This is especially useful in a disaster where regular
paper money isn't worth much. Some people bought their way out
of Nazi Germany, or Commie Vietnam, with gold. It also helps in
hyperinflation situations, when it is difficult to get enough
paper money, fast enough to afford things.

3. You pledge the gold as security (collateral) for a loan. A
lender may be much more likely to deal with you (and at a decent
interest rate.)


How do you reap the rewards of your investment?


See above.


Let say that you
bought gold say in 1956 because the world was going to be destroyed by
nuclear war and money would not be worth anything. So you have this
stockpile of gold. Great! Now What? All right it's 2007 and you sell your
gold, which you bought at 34 dollar an ounce for 677 dollar and ounce. Now
you have mad a profit, over 51 years. Hey Bubba you could have done 10 times
that in the friggin stock market. So hoarding gold is good why?


The gold is a lot safer than the stock market. Shares are pieces
of paper, and can become worthless overnight. And many of them
have done exactly that.

As long as there is a technologically advanced society, gold will
have industrial uses. There is some in that computer on which
you are reading this message.

Also, as long as there is a functioning economy (even if we
reverted substantially by massive war, pandemic, etc) then gold
and silver can still work as money.

Personally, I'm not really preparing for a noo-cu-ler armageddon.
But, rather, for a depression, or heavy inflation, or something
like that. Whether large-scale, or even just my personal
position.


--
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