Attention Gold Bugs! Nearly Converted Sceptic (Need information on purchasing gold)

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silverdollarbill

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Jim in Idaho

Jim in Idaho

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silverdollarbill said:
Real estate investing dramatically varies depending on what part of the country you are in. I think buying in NYC or SF right now would be crazy.
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Or North Dakota, or Houston and other Texas cities, and any other place that rapidly expanded due to high oil prices.
Jim
 

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Tallone

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Real estate is no sure thing either. We purchased a condo in south Florida back in 2006. Our timing could not have been worse. We bought at the peak of the market right before real estate prices crashed. Two years later, market value on that condo was about half what we paid for it. Fortunately, we paid cash have rented it out which covers our expenses and generates a little positive cash flow. Now here we are 10 years later and market values have still not recovered to what we paid for it. Real estate is probably the least liquid asset I can imagine. You certainly can't slice off a little piece of it to buy some food or fuel.

dejapooh said:
The vast majority of the money that exists does so in computers. It is shuffled from this account at the federal reserve to that account at the federal reserve. Example, you probably didn't get paid at your job this month, you probably got a check (or direct deposit). That money electronically shuffled from your boss' account to yours. What happens when that electronic link works, but you can't get any CASH? what happens if the electronic link to your cash is broken, it is still there, but you can't access it? There have been times where money has disappeared in the U.S. in the mid 1830's and again around 1861. Finally, in 1931-3. The Metal value of the currency was greater than the stated value of the currency.
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This is true. You often hear reports about how much money the government is "printing" these days. That suggests that the government is producing vast quantities of paper currency. There may be some of that but, more likely, someone sits down at a keyboard at the Federal Reserve computer system and types in a new amount to increase the amount of "money" in the system. These days the vast majority of financial transactions happen electronically. As dejapooh said, when I get paid it is simply an electronic transfer of "credits" (a.k.a. "money") from my employer's account to mine. I then use my debit/credit card to buy groceries, gasoline, etc. by transferring "credits" from my account to the grocery store's or oil company's account. My guess is that I do less than 5% of my financial transactions using paper currency.

All of this speaks to the real nature of "money". Money is all about perceived value. It doesn't matter what currency is being used (government paper, gold, cowrie shells, digits on your computer monitor, etc.), if the population believes the currency has value then it does. But if the population begins to believe the currency no longer has value (or sees the currency as significantly less valuable than it used to), look out below! This is, I believe, one of the great dangers of these "quantitative easing" programs the government has instituted. These programs simply add more money to the system. When something becomes too common, it tends to lose value. If people lose confidence in government currency, they will begin to look for an alternative. Historically, this alternative has often been precious metals, primarily gold and silver.

dejapooh said:
People horded medal cash and banks ran out of medal to give to depositors. Not because the bank was not liquid, but because no one had made a deposit of medal, so there was none on hand.
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Isn't a bank running out of cash (whether metal or paper currency - whatever was in circulation at the time) the very definition of "not liquid"?
 

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dejapooh

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Tallone said:
Real estate is no sure thing either. We purchased a condo in south Florida back in 2006. Our timing could not have been worse. We bought at the peak of the market right before real estate prices crashed. Two years later, market value on that condo was about half what we paid for it. Fortunately, we paid cash have rented it out which covers our expenses and generates a little positive cash flow. Now here we are 10 years later and market values have still not recovered to what we paid for it. Real estate is probably the least liquid asset I can imagine. You certainly can't slice off a little piece of it to buy some food or fuel.



This is true. You often hear reports about how much money the government is "printing" these days. That suggests that the government is producing vast quantities of paper currency. There may be some of that but, more likely, someone sits down at a keyboard at the Federal Reserve computer system and types in a new amount to increase the amount of "money" in the system. These days the vast majority of financial transactions happen electronically. As dejapooh said, when I get paid it is simply an electronic transfer of "credits" (a.k.a. "money") from my employer's account to mine. I then use my debit/credit card to buy groceries, gasoline, etc. by transferring "credits" from my account to the grocery store's or oil company's account. My guess is that I do less than 5% of my financial transactions using paper currency.

All of this speaks to the real nature of "money". Money is all about perceived value. It doesn't matter what currency is being used (government paper, gold, cowrie shells, digits on your computer monitor, etc.), if the population believes the currency has value then it does. But if the population begins to believe the currency no longer has value (or sees the currency as significantly less valuable than it used to), look out below! This is, I believe, one of the great dangers of these "quantitative easing" programs the government has instituted. These programs simply add more money to the system. When something becomes too common, it tends to lose value. If people lose confidence in government currency, they will begin to look for an alternative. Historically, this alternative has often been precious metals, primarily gold and silver.



Isn't a bank running out of cash (whether metal or paper currency - whatever was in circulation at the time) the very definition of "not liquid"?
Click to expand...

Real Estate is ALL about timing. I bought a condo in 2003, rented it out for income/ mortgage payment/ tax benefits, until the summer of 2007. Summer of 2007 was the absolute peak in So Cal. I hit the market right on the spot. Warned a few friends off of making investments in real estate, and sat on cash through the crash. started to make some more investments the summer of 2009. Did very very well. Now I am out of my investments, I am back in cash. I am hunkered down waiting for Crash 2.0. I just don't want my money to be bailed in...
 

Jim in Idaho

Jim in Idaho

Silver Member
Jul 21, 2012
3,320
4,698
Blackfoot, Idaho
Detector(s) used
White's GM2, GM3, DFX, Coinmaster, TDI-SL, GM24K, Falcon MD20, old Garrett Masterhunter BFO
'Way Too Cool' dual 18 Watt UV light
Primary Interest:
Prospecting
You should go back and read the post I was responding to....then you may understand why I posted what I did.
Jim
 

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