# Lifestyles & Discussion > Personal Prosperity >  Why I think buying gold is a bad idea.

## Nate K

I don't understand what the big deal with gold is, I have found so many reasons this is an absolute waste of money.  I understand the concept, but unless I'm wrong in the following, most of you haven't thought deep enough about this.  Here goes..

Why do people say buy gold?  Well because of inflation right, it's a hedge against the crashing dollar and it will actually gain you more money if and when it goes up in price.  But if your reason to buy gold is to prepare because you ACTUALLY THINK things are going to get bad enough like having our economy collapse.. you begin to take steps to ensure your investment is most safe.  So you generally want to buy the physical thing if "TSHTF" right?  Well here's the problem.

If things are going to get as bad as some of you are preparing for, shouldn't you also put into consideration gold confiscation?  Don't you think the government has a plan for all the 'smart people' who were a small voice at first but eventually grew to the point of gold buying being a popular thing?  

Ok, say I'm wrong with the last part, but we'll still say that the economy collapses like you are preparing for.  If you have read some stories of those who have lived through the Argentina hyper-inflation, you will find that silver, gold and other precious metals are traded at "fool's gold" price, since not everyone is a professional to be able to tell if what you have is the real deal or not, meaning.. your gold will be worth less than the dollar.


Taking this into consideration you should find that the event you are preparing for has such a tiny little chance of turning out, among all the other possibilities.  

If you're gonna go fishing, don't just bring your rod, bring your hooks too.  And bait.

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## josephadel_3

What about silver?

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## Nate K

> What about silver?


I may be the most uneducated on economics at this forum, so just as a reminder this is all my own opinion from reading a lot of survival stuff then tying it to economics.  I think silver would be better than gold, but some say that in a SHTF scenario silver wouldn't likely be a primary trade because it's "industrious"  (i think i got that from this forum actually).. I'm honestly not sure about silver, or the other metals.

All my advice for those who are still looking for something to invest in worthwhile, would be to look towards the real necessities, things that you might expect to be traded if you put a $#@!ty scenario through your head.  Supply and demand right?  If people need to eat, or need soap, medicine, other necessities, the demand will be extremely high so if you have the supplies to trade ahead of time, you'll be doing fine I think.  That "sector" will be a booming one IF something were to happen.

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## ChickenHawk

Confiscation isn't a problem for anyone who is the least bit prepared for it. The government doesn't know who has gold,  they can't search every house in America and I'm certainly not telling them where I put it.

The other scenarios are a possibility, but that is why you don't put everything in gold or silver. You need to diversify to cover a number of potential scenarios.

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## sevin

I've been wondering a lot of the same things as Nate K. Won't they just confiscate gold like they did during the Great Depression? What happens if we switch to a one-world currency? And for those who put gold in a safe at home, do you really think you'll be able to spend it at the grocery store, or that local coin dealers will actually give you a fair price when people are desperate for whatever they can get? And doesn't the world bank control have a lot of control over the supply and price of gold. 

For once, I would love to see someone give a clear, intelligent answer to these questions.

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## bill50

Gold sniffing dogs anyone?

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## Malakai

Sorry that doesn't even make sense.

If we had hyper inflation no retailer would turn down gold or silver. When the dollar was near it's low a few months back no one would turn down a euro, people know what has value.

If you flash an old silver dollar at even a gas station one of the workers will probably pay for your item with their money and take your coin. I did it a few times at a CVS and then a gas station I worked at. If you work that type of job you should know what years are what % silver =)

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## weatherbill

this thread is a joke, right??? got me laughing

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## efiniti

> If things are going to get as bad as some of you are preparing for, shouldn't you also put into consideration gold confiscation?  Don't you think the government has a plan for all the 'smart people' who were a small voice at first but eventually grew to the point of gold buying being a popular thing?


Right, so that's why you buy a gun to prevent the mafia from stealing from you.  If a life of freedom and ability to maintain wealth is important to you then you need to protect it.  And a gun is pretty good at doing just that.

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## Nate K

> Sorry that doesn't even make sense.
> 
> If we had hyper inflation no retailer would turn down gold or silver. When the dollar was near it's low a few months back no one would turn down a euro, people know what has value.
> 
> If you flash an old silver dollar at even a gas station one of the workers will probably pay for your item with their money and take your coin. I did it a few times at a CVS and then a gas station I worked at. If you work that type of job you should know what years are what % silver =)


So what I said about all metals being devalued for that reason, this wouldn't apply at all ever?

That happened to be the case in Argentina.

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## Nate K

> this thread is a joke, right??? got me laughing


I'm guessing you're sitting on a couple pounds of gold right now 




> Right, so that's why you buy a gun to prevent the mafia from stealing from you.  If a life of freedom and ability to maintain wealth is important to you then you need to protect it.  And a gun is pretty good at doing just that.


Oh, trust me, I don't disagree.

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## DFF

There's no such thing as a gold manufacturing machine. 

The Fed, with all it's power, and all it's might can't create a single ounce of gold. 

They can however, create billions of dollars via a printing press that subsequently leeches value away from the money in your wallet.

Granted, central banks actively collude together daily to distort and manipulate the true price of gold, but they can't do this to the extent which they do with paper money.

So, this is a no brainer. 

Gold > Paper

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## jonahtrainer

> I don't understand what the big deal with gold is, I have found so many reasons this is an absolute waste of money.  I understand the concept, but unless I'm wrong in the following, most of you haven't thought deep enough about this.


I do not think you have thought deeply enough about it.  What is the *'risk-free'* allocation of capital?  In other words, where do you store your capital when you do not want to allocate it?  Gold is cash and the wise investors use it to *calculate value*.  Fiat currencies are only 'like-cash'.

A fiat currency, by definition, cannot be 'risk-free' because it can become worthless through *hyperinflation*.  The reason to own gold is because it is 'risk-free'.  It is a *safe* place to store your capital when you do not have another place to allocate it.  Remember, it is not the price of bullion that fluctuates but the price of the irredeemable worthless pieces of fiat currency that do.  Gold is not a portfolio asset; everything else is.

Silver is primarily an industrial metal and only a quasi-monetary metal.  Gold is the only monetary metal as evidenced by the above ground stockpiles.  Gold IS money and nothing else is.  The US$ is only a money substitute.

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## Grimnir Wotansvolk

Any way you angle the issue, there is no fool-proof, perfectly safe way to hold your money.

But is having a valuable commodity physically present and within reach better than having electronic funds or nigh-on valueless cash? If I have to answer that for you, we're speaking entirely different languages altogether.

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## Ozwest

$#@! mate.

Catch your drift... The world is spinning.

Since I sold my business, I study. I ain't no font.

For what it's worth, my thoughts are as follows:

During the coming months we are not heading towards a " classical recession, " but rather a period of *stagflation*.

Higher inflation is coming from every direction you care to look. Normally, the Federal Reserve and the European Central Bank would move to stomp out inflation by raising interest rates and tightening money supply. Now, thanks to a weakening U.S. economy and the turmoil in debt markets, the FED and ECB are doing the opposite of what is required by flooding markets with short term cash and lowering interest rates. China, Russia, and other emerging economies determined to keep their currencies from gaining against the dollar are creating money to buy dollars, inflating their own currencies.

As the world's opinion of the U.S. dollar grows more and more unfavorable, owning gold becomes more and more important for preserving capital or for profiting from the trend.

My 2cents.

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## rrcamp

Keep in mind also that a lot of people hold their gold out of the country. An example of this is the bullion held in Perth Mint in Australia by Peter Schiff's clients, or the bullion held by many people in vaults in Switzerland or UK by Goldmoney.com clients.

If the government tried to seize gold like before, making it illegal to open a safe deposit box without an IRS agent present, those people with bullion out of the country can CHOOSE to report it or not.

Sure, Australia/Switzerland/etc could cooperate with the US government, but... it's pretty much as safe as you can get beyond burrying it in the backyard and sitting over it with s shotgun.

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## Ozwest

I have purchased 46,,701 from the Perth Mint from the first of September till today.

Mainly five ounce and once bars.

Weight matters. Coin fascia is diddly.

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## Ozwest

> Keep in mind also that a lot of people hold their gold out of the country. An example of this is the bullion held in Perth Mint in Australia by Peter Schiff's clients, or the bullion held by many people in vaults in Switzerland or UK by Goldmoney.com clients.
> 
> If the government tried to seize gold like before, making it illegal to open a safe deposit box without an IRS agent present, those people with bullion out of the country can CHOOSE to report it or not.
> 
> Sure, Australia/Switzerland/etc could cooperate with the US government, but... it's pretty much as safe as you can get beyond burrying it in the backyard and sitting over it with s shotgun.


I ain't no pirate, but gold is easy to hide.

Make great sinkers for fishing.

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## MoneyWhereMyMouthIs2

> I don't understand what the big deal with gold is, I have found so many reasons this is an absolute waste of money.  I understand the concept, but unless I'm wrong in the following, most of you haven't thought deep enough about this.  Here goes..
> 
> Why do people say buy gold?  Well because of inflation right, it's a hedge against the crashing dollar and it will actually gain you more money if and when it goes up in price.  But if your reason to buy gold is to prepare because you ACTUALLY THINK things are going to get bad enough like having our economy collapse.. you begin to take steps to ensure your investment is most safe.


I have life insurance.  As it turns out, I'm not running the streets trying to get myself killed.

We'd all like a healthy economy.  Many of us here have spent plenty of our personal time and money trying to make a better country - for everyone.  Why would you think we'd wish collapse on everyone so we can make a few bucks?

If everything crashes, you'd have to have A LOT of gold to actually be better off.  We become richer through trade and production, not through acquiring gold. (unless you're a mining company.)  No one will be better off in a crash.  People with holdings in gold just won't get screwed as badly.

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## angelatc

> If things are going to get as bad as some of you are preparing for, shouldn't you also put into consideration gold confiscation? Don't you think the government has a plan for all the 'smart people' who were a small voice at first but eventually grew to the point of gold buying being a popular thing?


I don't have gold, but I wonder about the people who are buying it from mail order places using a credit card.  It just seems like leaving a paper trail isn't a terribly good idea.

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## Ozwest

> I don't have gold, but I wonder about the people who are buying it from mail order places using a credit card.  It just seems like leaving a paper trail isn't a terribly good idea.


Keep your *individual* purchases under 10,000 dollars.

No mandatory reporting to the Tax Department.

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## PatriotG

> I may be the most uneducated on economics at this forum, so just as a reminder this is all my own opinion from reading a lot of survival stuff then tying it to economics.  I think silver would be better than gold, but some say that in a SHTF scenario silver wouldn't likely be a primary trade because it's "industrious"  (i think i got that from this forum actually).. I'm honestly not sure about silver, or the other metals.
> 
> All my advice for those who are still looking for something to invest in worthwhile, would be to look towards the real necessities, things that you might expect to be traded if you put a $#@!ty scenario through your head.  Supply and demand right?  If people need to eat, or need soap, medicine, other necessities, the demand will be extremely high so if you have the supplies to trade ahead of time, you'll be doing fine I think.  That "sector" will be a booming one IF something were to happen.



As some of you may already know and some may not I and my RTR colleagues are industry pros I have been trading metals since 1978

Most recently we have been perplexed by the significant disparity between the futures market gold and silver and the physical market.

There are a couple certainties that can be applied to this disparity

A handful of institutions that shall remain nameless, are leaning on the futures market right now, especially in silver which is more thinly traded.

After discussing this in depth the best theory we can come up with is that this handful of well informed institutions, we will call them the chosen few, knows something that John Q Public does not

6 months ago we would not have even considered confiscation a possibility but we know think that it is has become a stronger possibility

We have theorized that central banks are most likely leasing gold and silver to a group of well informed chosen few.

The CBs make money on these leases and eventually this leased gold is returned to them. By the way lease rates are currently way beyond the usual rate curve that we have historically seen

http://www.restoretherepublic.org/?p...&search_words=

Anyway these chosen few now have this leased gold and or silver, which gives them the means by which, to short the futures and OTC markets

Now the question remains why short?
Why not lease gold and silver and play the other side and manipulate it higher?

1. The central banks do not want this
They are currently waging a war against economic problems, inflation, what have you. They want to keep metal prices down. High metal prices are, and always have been a true indicator of inflation and troublesome economic times, and the public flocking to metals as a safe haven of investment, is threatening to their manufactured paper money. I would imagine that CB’s have laid the ground rules on these leases.

2. We now think that confiscation has become a stronger possibility. The chosen, informed banks, can manipulate the paper markets lower, and then with the help of TPTB, legislation can be enacted similar to executive order 6102,

http://en.wikipedia.org/wiki/Executive_Order_6102

then the price of both can fixed at a ridiculous level let's say $1600, and $25. These are two randomly chosen price targets for the sake of discussion

A scenario like this would not surprise us at all considering the powers that be have blatantly shown disregard for the well being of this country as a whole.

The game has become so obviously rigged at this point, and across the board, that it is frightening. We would like to be optimistic that the FED and the treasury are making decisions purely for the betterment of John Q America, but we haven't seen a shred of evidence, especially of late, that proves this is their goal.

By the way does anyone here view the 1933 confiscation as anything other than robbery, extortion? I've tried to place logic and reason to it based on what I have read about the depression of 1929, and cannot.

So when the smoke clears the CB’s have made money on the leases and perhaps futures shorts, they get this metal back, and the chosen few institutions make significant money on their short positions after covering. The public gets screwed having had their metal confiscated at let's say the lower manipulated paper prices. After fixing the prices at 1600 and 25, and post confiscation, they finally concede that paper money is worthless and enact legislation to throw us onto a new currency possibly backed by metals or a basket of tangible items whatever the case may be. The CB’s have all this gold they amassed via confiscation at lower prices. Pretty damn good deal.

There is also one other certainty in all of this, eventually these paper shorts will either have to be covered or the banks will have to move deliver. We see it as highly unlikely they will choose to deliver, so they will most likely cover, which means that sometime between now and December or April, a major short covering rally should be in the cards for both metals.

Timing remains unknown, price targets unknown

Now to answer a couple of questions in this thread and to elaborate on the topic at hand

Why own gold and silver.

I have many friends and who don't own any metal and for the last 8 months their portfolios are down anywhere from 20 to 50 percent

So answer 1, protection of assets.

I was very lucky because I saw this coming a while ago and started buying gold at the 550,600 level.

My portfolio is down 1.8 percent this year; I would be in the black if it weren't for the games that are being played out in the silver. So the positions in metal have kept my portfolio at break even when many people are in the red. I hold the ETF’s for this reason. Then the actual metal I hold is for an entirely different reason, Survival, just in case.




Answer 2

Let's assume the worst case scenario plays out and the SHTF, and let's assume the confiscation theory plays out. There is no way they can confiscate it all, It is just not physically possible for them to do so. They will once again play the fear card as they did in 1933 and threaten fine and imprisonment. 

If the worst case economic scenario does play out, isn’t better to be safe than sorry? It is probably very unlikely, but gold and silver especially, may be traded for necessities, food, and water whatever the case may be.

The bottom line in all of this is to be prepared just in case. It is sound thinking not only to be diverse and have some metal but has it has been stated many times in this forum, food, water, medical supplies, and yes arms. 

Just my thoughts.

PS: Found a good article that elaborates on this topic
http://www.mineweb.com/mineweb/view/...0932&sn=Detail

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## Ozwest

PatriotG,

Don't play short-term. You will get your underwear in a bundle.

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## angelatc

> Keep your *individual* purchases under 10,000 dollars.
> 
> No mandatory reporting to the Tax Department.


You have no idea what you're talking about.  Retailers are required to report all suspicious purchasing habits, especially those that appear to be deliberately avoid triggering a report.

You also have no idea what I am talking about.  If and when the Feds decide to confiscate gold, do you seriously think they won't go look at credit card records, as well as the shipping records of the stores that sell gold, looking to find the people that bought gold?

Go ahead, leave a paper trail.

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## Ozwest

> You have no idea what you're talking about.  Retailers are required to report all suspicious purchasing habits, especially those that appear to be deliberately avoid triggering a report.
> 
> You also have no idea what I am talking about.  If and when the Feds decide to confiscate gold, do you seriously think they won't go look at credit card records, as well as the shipping records of the stores that sell gold, looking to find the people that bought gold?
> 
> Go ahead, leave a paper trail.


I purchase from the Perth Mint.

The 10,000 limit originally started in the U.S. It was related to drug dealers, and their transactions.

My brother is an a accountant, and my x worked for a bank.

My advice is a guideline.

But...

You are a godsend.

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## fgd

Even if there was a confiscation order, black market gold dealers spring up overnight selling at the market price, not the artifically low spot price.

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## SevenEyedJeff

Gold and silver are honest alternatives to government manipulation and destruction of your money!!! How the f*** else are you going to protect your wealth???

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## theoakman

> I don't understand what the big deal with gold is, I have found so many reasons this is an absolute waste of money.  I understand the concept, but unless I'm wrong in the following, most of you haven't thought deep enough about this.  Here goes..
> 
> Why do people say buy gold?  Well because of inflation right, it's a hedge against the crashing dollar and it will actually gain you more money if and when it goes up in price.  But if your reason to buy gold is to prepare because you ACTUALLY THINK things are going to get bad enough like having our economy collapse.. you begin to take steps to ensure your investment is most safe.  So you generally want to buy the physical thing if "TSHTF" right?  Well here's the problem.
> 
> If things are going to get as bad as some of you are preparing for, shouldn't you also put into consideration gold confiscation?  Don't you think the government has a plan for all the 'smart people' who were a small voice at first but eventually grew to the point of gold buying being a popular thing?  
> 
> Ok, say I'm wrong with the last part, but we'll still say that the economy collapses like you are preparing for.  If you have read some stories of those who have lived through the Argentina hyper-inflation, you will find that silver, gold and other precious metals are traded at "fool's gold" price, since not everyone is a professional to be able to tell if what you have is the real deal or not, meaning.. your gold will be worth less than the dollar.
> 
> 
> ...


Gold is not a waste of money, GOLD IS MONEY.  Manufacturing pennies at a cost of 2 cents per penny, now that is a waste of money.

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## freelance

> You have no idea what you're talking about.  Retailers are required to report all suspicious purchasing habits, especially those that appear to be deliberately avoid triggering a report.
> 
> You also have no idea what I am talking about.  If and when the Feds decide to confiscate gold, do you seriously think they won't go look at credit card records, as well as the shipping records of the stores that sell gold, looking to find the people that bought gold?
> 
> Go ahead, leave a paper trail.


They won't have to look far. Do you remember that bill that passed earlier in the summer that contains a section requiring all credit cards to REPORT ALL OF YOUR PURCHASES to the government, starting next year. You're only exempt if you spend some ridiculously low amount for the whole year. Yeah, they've worked very hard to cover all bases. 

Further, there's no need to switch to digital currency. They've got everything in place without it. This way, they can give the illusion of a non-digital currency, when in fact, most of it is digital already.

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## Ozwest

> gold and silver are honest alternatives to government manipulation and destruction of your money!!! How the f*** else are you going to protect your wealth???


cash.

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## acptulsa

> cash.


Easy for you to say.  The Magic Eight Ball is predicting that _our_ cash will soon be shrinking like wool in a hot dryer.

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## Ozwest

> Easy for you to say.  The Magic Eight Ball is predicting that _our_ cash will soon be shrinking like wool in a hot dryer.


Sorry mate,

Three months ago the aussie dollar was worth .97, now it's worth .67.

Cause everyone is propping up your dollar.

Cry me a river of tears.

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## PatriotG

> cash.


 
Can you elaborate?
Because I dont see it.

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## Bossobass

I think you should buy a plasma TV, cause BS sounds better in Hi Def. 

Bosso

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## Ozwest

> Can you elaborate?
> Because I dont see it.


I was lucky. Ron Paul showed me the way 18 months ago.

I withdrew 580,00 out of the stock market and my Superannuation account 14 months ago. Put it in the bank.

I have since bought 20% bullion.

Eighty percent cash,20% gold. In eighteen months Real Estate.

Living off my savings during the meantime.

I'm a 50 year old fart who could drop off the perch at anytime.

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## Ozwest

Sorry you young bucks are on struggle street.

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## Athan

> So what I said about all metals being devalued for that reason, this wouldn't apply at all ever?
> 
> That happened to be the case in Argentina.


Well in this case, a lot of Ron Paul and freedom loving folks are getting prepared for what is coming. We are growing our own food and setting up water supplies, preparing for our own self defense, getting a trading community going, getting out of debt, saving up, and getting gold and silver.

If you have a problem with some food or water needs in a hyperinflation environment, you give me a dollar and I'll laugh. You show a silver piece or two and your in a business relationship. You tell me you are a Ron Paul supporter and I'll give you a discount.

You don't wave around the fact you have gold and silver. You simply have it "just in case" which is mostly for prevention and protection purposes. Better safe than sorry I say.

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## PatriotG

> Sorry you young bucks are on struggle street.


Im and old fart Also....

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## Ozwest

> Im and old fart Also....


Haha.

I hold my own.

Bring it on!

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## sam1952

Im a believer in diversification. What little bit of gold and silver I own is to hold. No matter what manipulation takes place in the markets it has no bearing on my personal plan. Though I do play with the ETFs but thats just for fun trying to increase paper dollars.

I truly hope my gold and silver will never be needed for the reasons I hold it. Like someone else said, its like an insurance policy. Id rather have a little and not need it then need some silver quarters for food or gas and not have it. I like junk silver coins for this reason.

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## ARealConservative

The confiscation argument is just silly IMO.

Yes, we did confiscate gold at one point  a point where gold was linked directly to money and the only way to sever that tie was to lawfully enforce a requirement that you cant hold and use gold as money.  

Today if they were to actually confiscate gold, it would be no different then confiscating diamonds, or land, or anything else of value.  Im not saying government wouldnt try doing such a thing, but what good does it do worrying about it?   This is like saying it is stupid to buy a gun because some day the gun you buy might be on a list of illegal weapons.

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## RickyJ

> I don't have gold, but I wonder about the people who are buying it from mail order places using a credit card.  It just seems like leaving a paper trail isn't a terribly good idea.


Well you either use a credit card, check, or money order. For some reason they don't accept cash for mail orders, I guess it is too risky. Yes, the government can know you bought gold this way if they report their sales to the IRS. But even if they do they won't know if you still have it or where you have it. The government has no desire to get people's gold. They would rather make us all their slaves through implanted chips as the only way to officially do any business of any kind.

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## freelance

> Well you either use a credit card, check, or money order. For some reason they don't accept cash for mail orders, I guess it is too risky. Yes, the government can know you bought gold this way if they report their sales to the IRS. But even if they do they won't know if you still have it or where you have it. The government has no desire to get people's gold. They would rather make us all their slaves through implanted chips as the only way to officially do any business of any kind.


Black markets have withstood the test of time.

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## fj45lvr

> I don't understand what the big deal with gold is, I have found so many reasons this is an absolute waste of money. I understand the concept, but unless I'm wrong in the following, most of you haven't thought deep enough about this. Here goes..
> 
> Why do people say buy gold? Well because of inflation right, it's a hedge against the crashing dollar and it will actually gain you more money if and when it goes up in price. But if your reason to buy gold is to prepare because you ACTUALLY THINK things are going to get bad enough like having our economy collapse.. you begin to take steps to ensure your investment is most safe. So you generally want to buy the physical thing if "TSHTF" right? Well here's the problem.
> 
> If things are going to get as bad as some of you are preparing for, shouldn't you also put into consideration gold confiscation? Don't you think the government has a plan for all the 'smart people' who were a small voice at first but eventually grew to the point of gold buying being a popular thing? 
> 
> Ok, say I'm wrong with the last part, but we'll still say that the economy collapses like you are preparing for. If you have read some stories of those who have lived through the Argentina hyper-inflation, you will find that silver, gold and other precious metals are traded at "fool's gold" price, since not everyone is a professional to be able to tell if what you have is the real deal or not, meaning.. your gold will be worth less than the dollar.
> 
> 
> ...


 
Gold coinage is EASY to determine if it is "real" or not with a cheap electronic scale and a ruler (it has to weigh a certain amount if the dimensions are to spec.)

Food is more important than gold, that is for sure.

Confiscation is not an issue because the Gov. is really unsuccessful at it (as is should be)....look how well illicit drug confiscation is!!!  

Welcome to the black market baby!!!  Gov. hates gold because they have a much tougher time TAXING it in estates and it would CONSTRAIN their organized "rip off plans".

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## Ozwest

> Well you either use a credit card, check, or money order. For some reason they don't accept cash for mail orders, I guess it is too risky. Yes, the government can know you bought gold this way if they report their sales to the IRS. But even if they do they won't know if you still have it or where you have it. The government has no desire to get people's gold. They would rather make us all their slaves through implanted chips as the only way to officially do any business of any kind.


Why not buy your gold through a mint?

Buy 1oz. bars, or 5oz. bars.

Or...

Silver

Cheaper, but just as rewarding.

Buy weight.

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## ArchPaul

"Black markets have withstood the test of time."

 A little hobby of mine....

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## jonahtrainer

> The confiscation argument is just silly IMO.


I agree about the *gold confiscation hydra*.  I do not think there is much to worry about.  If there every is then governments have a bigger problem.

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## raystone

> The confiscation argument is just silly IMO.
> 
> Yes, we did confiscate gold at one point  a point where gold was linked directly to money and the only way to sever that tie was to lawfully enforce a requirement that you cant hold and use gold as money.  
> 
> Today if they were to actually confiscate gold, it would be no different then confiscating diamonds, or land, or anything else of value.  Im not saying government wouldnt try doing such a thing, but what good does it do worrying about it?   This is like saying it is stupid to buy a gun because some day the gun you buy might be on a list of illegal weapons.


+1

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## Josh_LA

if anybody is sold to this guy's idea, feel free to sell me.

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## raystone

//

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## Ozwest

> "Black markets have withstood the test of time."
> 
>  A little hobby of mine....


Hahahaha.....

Nice *hedge* fund.

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## DFF

> I don't have gold, but I wonder about the people who are buying it from mail order places using a credit card.  It just seems like leaving a paper trail isn't a terribly good idea.


LOL...look, things are gonna get rough, no doubt about it, but we're not headed towards the gold seizure act part deuce.

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## rockandrollsouls

> I don't understand what the big deal with gold is, I have found so many reasons this is an absolute waste of money.  I understand the concept, but unless I'm wrong in the following, most of you haven't thought deep enough about this.  Here goes..
> 
> Why do people say buy gold?  Well because of inflation right, it's a hedge against the crashing dollar and it will actually gain you more money if and when it goes up in price.  But if your reason to buy gold is to prepare because you ACTUALLY THINK things are going to get bad enough like having our economy collapse.. you begin to take steps to ensure your investment is most safe.  So you generally want to buy the physical thing if "TSHTF" right?  Well here's the problem.
> 
> If things are going to get as bad as some of you are preparing for, shouldn't you also put into consideration gold confiscation?  Don't you think the government has a plan for all the 'smart people' who were a small voice at first but eventually grew to the point of gold buying being a popular thing?  
> 
> Ok, say I'm wrong with the last part, but we'll still say that the economy collapses like you are preparing for.  If you have read some stories of those who have lived through the Argentina hyper-inflation, you will find that silver, gold and other precious metals are traded at "fool's gold" price, since not everyone is a professional to be able to tell if what you have is the real deal or not, meaning.. your gold will be worth less than the dollar.
> 
> 
> ...


Might want to consider studying economics and history before you spew an unsupported and incorrect opinion...

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## Nate K

> Might want to consider studying economics and history before you spew an unsupported and incorrect opinion...


Do you have any useful constructive criticism besides your kind compliments?

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## RickyJ

People were saying buying gold was foolish when it was $250 an ounce. Not many are still saying that today though. When gold hits $1200 plus next year tell me again how much of a waste of money you think it is. So far many investors in gold have doubled and even tripled their initial investments. The investors of real estate in the same time period have lost half and even 2/3 their initial investments.

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## LibertiORDeth

> Confiscation isn't a problem for anyone who is the least bit prepared for it. The government doesn't know who has gold,  they can't search every house in America and I'm certainly not telling them where I put it.
> 
> The other scenarios are a possibility, but that is why you don't put everything in gold or silver. You need to diversify to cover a number of potential scenarios.


Although it would be basically unsellable if they did start confiscating it.

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## RickyJ

> Although it would be basically unsellable if they did start confiscating it.


No it wouldn't. It would it make it even more valuable.

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## DFF

> people were saying buying gold was foolish when it was $250 an ounce. Not many are still saying that today though. When gold hits $1200 plus next year tell me again how much of waste of money you think it is. So far many investors in gold have doubled and even tripled their initial investments. The investors of real estate in the same time period have lost double and even triple their initial investment.


+1776

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## PatriotG

> The confiscation argument is just silly IMO.
> 
> Yes, we did confiscate gold at one point  a point where gold was linked directly to money and the only way to sever that tie was to lawfully enforce a requirement that you cant hold and use gold as money.  
> 
> Today if they were to actually confiscate gold, it would be no different then confiscating diamonds, or land, or anything else of value.  Im not saying government wouldnt try doing such a thing, but what good does it do worrying about it?   This is like saying it is stupid to buy a gun because some day the gun you buy might be on a list of illegal weapons.



They finally concede that paper money is worthless, and enact legislation to throw us onto a new currency possibly backed by metals or a basket of tangible items whatever the case may be. The CBs have all this gold they amassed via confiscation at lower prices. Pretty damn good deal.

I'm not saying its likely  I just like to consider all possibilities

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## LibertyEagle

> They finally concede that paper money is worthless, and enact legislation to throw us onto a new currency possibly backed by metals or a basket of tangible items whatever the case may be.


Yeah, this one has dawned on me too.

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## phixion

> They finally concede that paper money is worthless, and enact legislation to throw us onto a new currency possibly backed by metals or a basket of tangible items whatever the case may be. The CBs have all this gold they amassed via confiscation at lower prices. Pretty damn good deal.
> 
> I'm not saying its likely  I just like to consider all possibilities


Why would they _ever_ back a currency by metals?

Wouldn't this limited their ability to manipulate and control society?

Pete

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## TruthisTreason

> I don't understand what the big deal with gold is, I have found so many reasons this is an absolute waste of money.  I understand the concept, but unless I'm wrong in the following, most of you haven't thought deep enough about this.  Here goes..
> 
> Why do people say buy gold?  Well because of inflation right, it's a hedge against the crashing dollar and it will actually gain you more money if and when it goes up in price.  But if your reason to buy gold is to prepare because you ACTUALLY THINK things are going to get bad enough like having our economy collapse.. you begin to take steps to ensure your investment is most safe.  So you generally want to buy the physical thing if "TSHTF" right?  Well here's the problem.
> 
> If things are going to get as bad as some of you are preparing for, shouldn't you also put into consideration gold confiscation?  Don't you think the government has a plan for all the 'smart people' who were a small voice at first but eventually grew to the point of gold buying being a popular thing?  
> 
> Ok, say I'm wrong with the last part, but we'll still say that the economy collapses like you are preparing for.  If you have read some stories of those who have lived through the Argentina hyper-inflation, you will find that silver, gold and other precious metals are traded at "fool's gold" price, since not everyone is a professional to be able to tell if what you have is the real deal or not, meaning.. your gold will be worth less than the dollar.
> 
> 
> ...



Gold probably won't make the average investor any money. But, someone purchasing a few ounces of coin, will have something of value when they redeem the gold for currency.  At best, you keep your buying power.  In my eyes, if you think investing in gold is a bad idea, you probably haven't been investing long.  That being said, I wouldn't over leverage myself in any one direction.  Read some Rothbard, you'll get the picture pretty quick.

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## Acala

> Why would they _ever_ back a currency by metals?
> 
> Wouldn't this limited their ability to manipulate and control society?
> 
> Pete


consider this scenario:

The dollar collapses in hyper-inflation.  The world rejects it as the global currency.  "Somebody" must issue a new global currency.  There may be a competition (or at least the appearance of competition) for who gets the lucrative position of controlling the issuance of the new global currency.  Most of the people of the world have just been royally screwed by watching un-backed paper money turn into toilet paper and are reluctant to accept a new piece of un-backed paper in exchange for the old.  The Central banks and governments like China have vast quantities of gold and silver.  In order to get the world to accept the new currency it will start out as redeemable in gold and/or silver.  Once it has been fully accepted, then the process of breaking it free of gold begins - a replay of what happened in the US from 1913 to 1971.  Get people to accept paper by backing it with gold and then pull the backing once people are asleep again.

Gold and silver are going to be money again after the dollar collapses.  In the local black markets for sure, and probably in some official currencies.  Either way, gold and silver will retain, and probably dramatically increase their value.  There will be no need for government to confiscate gold or silver unless and until it is trying to force people to accept un-backed paper again.

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## PatriotG

> consider this scenario:
> 
> The dollar collapses in hyper-inflation.  The world rejects it as the global currency.  "Somebody" must issue a new global currency.  There may be a competition (or at least the appearance of competition) for who gets the lucrative position of controlling the issuance of the new global currency.  Most of the people of the world have just been royally screwed by watching un-backed paper money turn into toilet paper and are reluctant to accept a new piece of un-backed paper in exchange for the old.  The Central banks and governments like China have vast quantities of gold and silver.  In order to get the world to accept the new currency it will start out as redeemable in gold and/or silver.  Once it has been fully accepted, then the process of breaking it free of gold begins - a replay of what happened in the US from 1913 to 1971.  Get people to accept paper by backing it with gold and then pull the backing once people are asleep again.
> 
> Gold and silver are going to be money again after the dollar collapses.  In the local black markets for sure, and probably in some official currencies.  Either way, gold and silver will retain, and probably dramatically increase their value.  *There will be no need for government to confiscate gold or silver unless and until it is trying to force people to accept un-backed paper again.*



Do over!

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## AmericasLastHope

> They finally concede that paper money is worthless, and enact legislation to throw us onto a new currency possibly backed by metals or a basket of tangible items whatever the case may be.


      "European Central Bank President Jean- Claude Trichet said officials reshaping the world's financial system should try to return to the "discipline" that governed markets in the decades after World War II.

      "Perhaps what we need is to go back to the first Bretton Woods, to go back to discipline," Trichet said after giving a speech at the Economic Club of New York yesterday. "It's absolutely clear that financial markets need discipline: macroeconomic discipline, monetary discipline, market discipline." (Bloomberg)

http://www.marketoracle.co.uk/Article6920.html

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