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Paxtor (29.46)

Downside to Gold?

Recs

3

January 24, 2009 – Comments (4) | RELATED TICKERS: GOLD , BGS

I'm no Xpert in Gold, but from what I have read, there isn't much of a downside to the asset (long term).  Please, feel free to correct me on any point here, I am learning about gold!

1) Your government is probably printing more money, so inflation is likely at some point in the future.  As I understand it, owning gold is a bit of hedge against that.

2) More and more people are terrified about the economy and race to gold as a place of safety (and more will probably do so as they realize treasuries aren't as safe as they thought)

3)  If the above people are wrong and the economy turns around, gold as a resource will be in high demand in the booming Indian/Chinese economies and we will likely see inflation as well

4) If the people in point number 2 are right, then, let's be honest.  Think about human nature, how long will a recession/depression last before it turns into a war?  Even the mildest of depressions have seen a rise in fascist groups (the 90's recession saw the rise of several neo-nazi groups here in Canada alone).  If the war is a global one, we will not see the sick economic benefits of WW2.  Weapons are a lot more devastating in 2009 vs 1939, single strategic weapons can wipe out a metropolis.  Of course, if it got that bad, only food would be of value!

At the moment i'm not invested in gold on the markets, the only gold I have is a couple of coins in a safe, but I am considering it as a long term investment.

 Please, your thoughts on this are welcome.

4 Comments – Post Your Own

#1) On January 24, 2009 at 8:15 PM, anchak (99.84) wrote:

Some simple facts

(1) Gold is one of the riskiest investments in terms of short-term volatility

(2) The macro case for Gold is strong. But there are 2 divergnet camps  - Deflationary and Inflationary. Every dog has its day

(3) Some of the Gold companies are absolute scum - beware of them

(4) And now to make it interesting - Gold is at its pivotal next 2 weeks in recent months as it ever been. It is trying to reverse a 1 year BEARISH pattern -if it does....it may be off to the races

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#2) On January 24, 2009 at 10:16 PM, Paxtor (29.46) wrote:

3) Oh yes, I should note I was talking about the asset itself, not the miners.

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#3) On January 24, 2009 at 11:53 PM, jahbu (86.33) wrote:

Downside?  Well Big brother could take it from you and give you some dollars.  They choose the amount.   Or Big brother could tax the heck out of it.g  Your gold might appreciate but so may the taxes on it when you sale.  $5000 gold sounds dern good but not so good with a 75% tax on its sale.

IMHO the government/central banks do not want us owning gold.  They want us to own their worthless paper. 

Jahbu

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#4) On January 25, 2009 at 1:54 AM, kaskoosek (98.26) wrote:

jahbu

 

keep it outside the country?

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