Thinking of buying gold bars !!

darkpool

anyone else think gold investment is a bit weird?

engineers/ miners move millions of tonnes of rock to get to the gold ore. it is then processed at great financial and environmental expense. the gold is then formed into bars and coins. these gold bars are then stored in a bank vault and are never used or see the light of day.

i can't help thinking if aliens were watching us they'd be thinking "!!!!!!!"

sabretoothtigger

Warren Buffet agrees with you !

Gold does have a purpose in that it keeps people honest. Either you have that gold or you dont, with paper or debt or credit promises we all know that big men with big egos can get carried away and the value promised is destroyed or never existed
With gold all you can do is steal it, it cant really be destroyed so we do have a reason to use it and its that its a very simple unique bar of wealth.

Accounting and holding wealth in a sound way is considered useful by society, as we hear more politics on paper money and promises we see gold rises in worth

Gold will be worth less when money involves less promises and more actual delivery of traded goods.
Then people will revert back to insurances and assurances but with more frequency of actual physical trade.
All the government debt is a promise and maybe they deliver but that uncertainty is raising the premium on physical wealth

Gold is an investment that share dealers dive into when prices are diving and they're about to have a nervous breakdown.

Ten years ago we didnt buy gold when we sold shares.
We took cash and used it to do something else besides company investment like ordinary bank savings maybe.
What changed to make gold worthwhile now

The traders buy digits of GLD and other fancy things which aren't actually gold.

GLD is a trust that buys gold when people demand it and even delivers if requested so they will be part of the gold market.

Its not immediate delivery or immediately bought I guess so its a lagging part of the market but its there after a while .

Same as gold shares, why are they so cheap I guess partly because they wont deliver today and its maybe tomorrow maybe their workers strike

As gold is about worry and partly the ability to pay your bills, people penalise gold miners for the maybes. Ultimately this is what investment profit is about, you hold for the maybes to become definates.

The gold mines are going to replace the Fed as incredibly liquid and capable companies I imagine. The fed relies on reputation and the dollar base demand for its power to move markets but as gold rises in demand it surely infers more power to companies mining it to affect the worlds flow of liquidity ?

Theres bound to be more upset like Chavez's actions

padington

bendix wrote: »

Semantics

If those tangible assets have a lower convertible value than you bought them at, the effect is still the same.

How ridiculous, if one person has an apple and another person has an IOU for an apple and one day all IOU's get annulled, will both people feel the 'same effect' ?

Ark_Welder

sabretoothtigger wrote: »

Its used in USA coins now, used to be much more but its still there.

http://www.usmint.gov/faqs/circulating_coins/#anchor4