The attempts to get you to buy gold are off the charts! EVERY "conservative" TV and radio station has a different gold company running the ads, with the hosts claiming "X is the only company I trust". It seems like whenever there is a huge push for something like this, it is all part of a behind-the-scenes plan to rip off the average joe. My feeling is that if the SHTF and the economy collapses, what good will $100,000 in some gold company stock/fund do you? Is anyone else going to buy your $5,000 /oz gold? My theory is that this huge gold push is to drive the price of gold up to a point where the big boys DO sell out, make a killing, and leave everyone else scrambling to get out before it drops below what they bought in for. Please post your thoughts on this. Thank you.
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They've been doing this for years... including all those cash for gold pop ups.
Why? Because people are dumb when it comes to PM. Period.
They don't know the product - they don't understand the difference between a minted coin and a round - "Yeah I got a great deal on a monster box of silver buffaloes!!! - much cheaper than the place you recommended!" That's because they took advantage of your ignorance... silver bugs will get what occurred, most will not.
Because of ignorance, all of these "grifters" pushing gold and silver, prey on people's stupidity. They push odd sizes like 1.5 or 3 oz rounds and pawn them off as "genuine coins". This lets them push wide profit margins - which is why they still do it.
There's nothing wrong with buying PM to hedge against inflation. It is NOT an investment... it's locking in the buying power of your dollar value TODAY. For instance, I have a stack if gold i bought at around $1100. It's nearly tripled in value since. Silver has doubled. Did I really "make" a return? No. The dollar is simply worth less.
The nice thing about physical AU and AG is you own it. You can hold ot in your hand. It has intrinsic value everywhere around the world. It's freedom. Electricity, a computer etc not required... neither is a middle man. You control the entire deal. Everybody else can pound sand.
I agree.
Let me ask you... what do you think about having gold for the purpose of paying off a fixed rate mortgage if shtf? So, the dollar becomes fire kindling, but that doesn't mean I have a lot of it--my employer won't be paying me more. But if gold has gone to $10K per ounce or more, and I can walk into a bank and pay off my mortgage with it, then that would be smart, wouldn't it? I am asking, not telling.
If the rate is fixed, just use cheap money.
I understand. But that assumes that I have more of the fiat dollars. Why would I have more of them, though? Let's say I make $5000 per month, and my mortgage balance is $250K. I can afford the payment. But, if I have a chance to cash in 25 gold coins worth $10K each (hypothetically) and suddenly own my house outright, wouldn't that be a good thing? And, in this scenario of hyperinflation where the dollar is so worthless that it costs $25 for one loaf of bread, that does not mean that my employer will be paying me more. I still have my $5000 per month. Obviously I could use the gold coins to cash in and get money to buy basics... but if I have enough, then I would want to buy my house and own it outright.
All of this is hypothetical, but this is how I'm thinking. I want to own my house.
Oh I see, you want to pay it all off with profits from the increased value of your metal.