Paper?

[disneysteve]

1. You do not really own your houses. 2. You do not really own you vehicles. That is for another discussion.

I sense that the next post will explain how the US government has no legal authority to collect taxes so it is not necessary to pay them.

[Goldenladyfun]

You should watch that movie called "Horton Hears A Who" I feel like Horton. Who should play the roles of the son, the mayor, meddelsome kangaroo and her monkies? Now take your fingers out of your ears. I thought this forum was about good deals. That is why I presented to you a few facts about an obvious good deal. Not even my own good deal. How about this fact: If you had invested 10,000 dollars in 1999 in gold you would have earned more than 280% on your coconuts...I mean money. If you had invested the same "money" in the stock market you would have lost 14% of your coconuts...I mean "money".

Obviously I am in the wrong movie.

[disneysteve]

You should watch that movie called "Horton Hears A Who" I feel like Horton. Who should play the roles of the son, the mayor, meddelsome kangaroo and her monkies? Now take your fingers out of your ears. I thought this forum was about good deals. That is why I presented to you a few facts about an obvious good deal. Not even my own good deal. How about this fact: If you had invested 10,000 dollars in 1999 in gold you would have earned more than 280% on your coconuts...I mean money. If you had invested the same "money" in the stock market you would have lost 14% of your coconuts...I mean "money".

Obviously I am in the wrong movie.

Don't know why I'm even getting into this but...

Goldbugs love to pick and choose data that support their fantasy. Yes, if you happened to invest in 2000, your 10 year return would have been better with gold than with the S&P 500. However, as you can see here:
MacroMania: Is gold a good store of value?
the opposite is true if you invested in 1990, 1980 or 1970. Yes, there are select time periods during which gold outperformed stocks but the vast majority of the time, the opposite is true. Look at the 1980 chart. Over 30 years, gold was nearly flat compared to a substantial rise for stocks.

Nothing wrong with having a small stake in precious metals - I own a precious metals fund myself. But in no way should that ever be the basis or bulk of one's portfolio. Nor should any other single investment or single sector. I wouldn't put all of my money into real estate or tech or pharma or any other one area. Diversification is the key.

[Snodog]

I sometimes read survivalist websites. Yesterday I read on a survivalist website an article about how to open a coconut! Make sure you know how to open your Bank of Coconuts.

You mean they open too?! Oh boy, oh boy!!

"Compadre, cómpreme un coco ..."
‪Compadre, cómpreme un coco‬‏ - YouTube

That's a serious tongue twister!

[Goldenladyfun]

Goldbugs? I don't know you well enough for a such ad hominem remarks. I think under the old way of looking at performance one should never put all his eggs in one basket. But for people concerned with making good deals one must take advantage of a good thing. Strike while the metal is hot. Or do you recommend a follow the crowd type of approach? I think enough people have been fooled into that mentality. I am sorry to say that I participated in some of that deception for which I am attempting to correct my former mistakes against Moms, Dads, Grandma's and Grandpa's. Thank you for your thoughtful remarks. Live long and prosper.

[disneysteve]

But for people concerned with making good deals one must take advantage of a good thing. Strike while the metal is hot. Or do you recommend a follow the crowd type of approach?

I'm confused. Are you saying that now is the time to buy gold because "the metal is hot"? But then you imply not to "follow the crowd". Those statements seem contradictory. Gold has had a tremendous run up in price. That's generally not the time to invest. That's the time to take your profits before things turn the other way. The "crowd" is everyone and his brother suddenly jumping on the gold wagon because of the lofty prices that they think can only continue to go up. Sounds a lot like the real estate market about 4 years ago or the tech market years before that. When everyone suddenly seems to be promoting an investment, the smart investors know that's the time to run for the exit and beat the crowd.

So no, I do not recommend a "follow the crowd" approach. I think the crowd is almost always late to the party. Once the crowd gets involved, the profit has already been made and the investment is ripe for a fall.

[greenskeeper]

It amazes me how many people accept the belief that the average person can protect his assets by investing in paper such as currency, stocks and bonds and any other kind of promise written on paper. Let me know if you agree with me or disagree.

depends what kind of "promise" written on paper

currency? no, not backed by anything and loses value on almost a daily basis

stocks? yes/no. I have some through my 401k but the market will never be the same as it was.

bonds? almost as bad as currency. but you are getting near armageddon for them to be worthless.

deeds and titles? They are legal and show ownership to an asset. Again unless you are talking armageddon where the one with the most guns wins.

Gold/Silver are protectors of wealth, and to some extent (silver) can be a wealth builder once the manipulation of the COMEX comes to fruition.

Rough example: A gold coin in 1920 could buy a tuxedo as well as today. The difference being that in 1920 the suit was $20 dollars vs $600 dollars today.

[photo]

It amazes me how many people accept the belief that the average person can protect his assets by investing in paper such as currency, stocks and bonds and any other kind of promise written on paper. Let me know if you agree with me or disagree.

The statement in and of itself doesn't make a lot of sense. Ask any lawyer if a promise on paper is enforceable. I encourage you to read about financial contracts and what stocks and bonds actually are.

[Goldenladyfun]

Accept Our Debt or Not - Enfoceable?

I like this sort of dialog. A contract or a piece of paper is only as good as the issuer. Even if it is enforceable who wants to go into a court waving a piece of paper around every time he wants to be paid back. The answer is a lawyer. The debts owed by the American people are also enforceable. What will the bankers do if we don't pay it back? What will happen to us? %14 Trillion is owed and we can never pay it back. What court shall try to enforce it? Who is going to enforce it? Does this have anything to do with inflation and jobs moving overseas?

[photo]

A contract or a piece of paper is only as good as the issuer. Even if it is enforceable who wants to go into a court waving a piece of paper around every time he wants to be paid back.

If you have to go to court every time you sign a paper, then it sounds like you need to make better decisions on whom you choose to do business with.

You began the thread rather contentiously and without a clear demonstration that you understand the basics of what you're saying.

What is it that you're trying to ask?

[Goldenladyfun]

Well this is a new medium for me so be gentle please. You mentioned enforcement not me. Who we are dealing with are a pack of the biggest liars in history banks, government and brokers. I know, I used to work for them. The issuer is the Fed Reserve. The borrower is We The People. So I guess we should be careful with whom we deal. That is the very point.

I apologize if my question was contentious. I only wanted more discussion and less T.V. talk which I find incredibly boring. (I don't watch T.V.). What was I trying to ask? Nothing. I just wanted to wake some moldy people up who have been sitting comfortably in their easy chairs for way too long. Was I successful?

[Goldenladyfun]

Repost Editorial Change

I tried to edit my earlier message. But it was not shown so here it is again. I apologize if it is redundant.

I like this sort of dialog. A contract or a piece of paper is only as good as the issuer. Even if it is enforceable who wants to go into a court waving a piece of paper around every time he wants to be paid back. The answer is a lawyer. The debts owed by the American people are also enforceable. What will the bankers do if we don't pay it back? What will happen to us? %14 Trillion is owed and we can never pay it back. What court shall try to enforce it? Who is going to enforce it? Does this have anything to do with inflation and jobs moving overseas?

Great points Disneysteve. Whether gold will go higher is the question. So far the gold curve tracks with the debt curve and the regime has just allowed itself to increase the debt ceiling. You figure it out. But I know that Wall Street, the Bankers and their guardians, the government and fox news don't push gold but push paper. I also note that the majority of the people have not jumped on the gold band wagon. Considering that the price of gold has been and continues to be surpressed and that central banks are for the first time in history net buyers of gold. I wonder what they know that the rest of us don't? I know one thing other thing, the dollar against the Swiaa Franc dropped to 72 cents on Friday. Similar devaluations against other currencies are comparable. Thank you for your thoughts.

[photo]

I just wanted to wake some moldy people up who have been sitting comfortably in their easy chairs for way too long. Was I successful?

I'm new to the forum myself. However, a good start for any new poster is to read the forums before responding, which I did, and liked the general attitude. Many people here seem to have a pretty good grasp on money, so you may have trolled the wrong forum.

[Goldenladyfun]

Yeah you are probably right about the forum being wrong. Its a habit after 30 years working for the big boys to expect to go to the investing and banking area. Why should I assume that professionals would be here. This is really more for retail customers with whom I have no experience. I could just bore people to tears sometimes rambling on. Take care.

[Goldenladyfun]

Rambling

Yeah you are probably right about the forum being wrong. Its a habit after 30 years working for the big boys to expect to go to the investing and banking area. Why should I assume that professionals would be here? This is really more for retail customers with whom I have no experience. I could just bore people to tears sometimes rambling on. Take care.