Gold High-Risk Investment

[MachM]

03rd February 2009: The $1 billion shipwreck: Centuries after it sank in the Channel the race is on to raise Victory's gold

On a stormy night in 1744 the star of the Royal Navy's fleet sank to the depths of the English Channel, taking with it more than $1billion worth of gold.

The ship was HMS Victory, the immediate predecessor of Nelson's mighty warship of the same name. The wreck, a grave to the 1,100 who went down with the ship, was discovered last year, triggering a dispute over who should have the gold and the ship's priceless bronze cannon. An American salvage company found the ship in international waters in May.

But because of rulThe remains of the ship were found by the Florida-based company Odyssey Marine Exploration. Its co-founder Greg Stemm, said they were negotiating with the British government over collaborating on the project.es concerning sovereign warships, the Government has the right to control the excavation and stake a claim to artefacts found on the ship.

The remains of the ship were found by the Florida-based company Odyssey Marine Exploration. Its co-founder Greg Stemm, said they were negotiating with the British government over collaborating on the project.

Odyssey, a publicly traded corporation, made headlines two years ago when it announced that it had raised 17 tons of silver coins from an Atlantic Ocean shipwreck.

http://www.dailymail.co.uk/sciencet...es-sank-Channel-race-raise-Victorys-gold.html

 

[MachM]

Gold is High-risk investment because if someday "massive ancient gold" is discovered, gold price will crash rock bottom without any warning.

 

[Original_Intent]

That is quite a claim. What percentage of all gold ever mined has been lost? Assuming that 10% of all the gold ever mined had been lost (doubtful) and assuming that it was ALL found within a short period of time (even more doubtful) how much of an effect would it have on gold price?

 

[MachM]

In 1715 a fleet of eleven galleons carrying gold and silver, valued at almost fifty six million reales, was struck by a hurricane off the east coast of Florida near the mouth of the Saint Sebastian River not far from present day Cape Canaveral. The ships broke apart and sank off the coast between Melbourne and Stuart with their cargo scattered over the ocean floor. To date five of the wrecks have been located and much treasure from this fleet has been recovered from the ocean bottom

56 million reales = $688 million (in 1975)

I think, now $688 million would be worth 10 times that of 1975.

So the value of treaure from one ship alone comes to $7 billion (estimated)

Now think of thousands of Sunken ships and undocumented/undiscovered "sunken ships"

http://xrgoldrate.com/Shipwrecks_Gold.html

 

[gilliganscorner]

Gold is High-risk investment because if someday "massive ancient gold" is discovered, gold price will crash rock bottom without any warning.

Fiat money is a high risk investment as its value ALWAYS stems out out of debt and is devalued by printing more of it. In the event a massive ancient printing press is discovered and it is cranked up and money handed to insiders, the value of the dollar will crash rock bottom without any warning.

Ooops. My bad. We don't need to discover an ancient printing press. The one the government owns is already in white-hot operation and monies handed out to insiders.

 

[gls]

Ooops. My bad. We don't need to discover an ancient printing press. The one the government owns is already in white-hot operation and monies handed out to insiders.

You've got it all wrong. According to the "experts", the government isn't running the printing presses.

http://finance.yahoo.com/banking-budgeting/article/106524/Your-Questions-Answered

Question: "I am confused about *how* the government is bailing us out of debt. Where does the stimulus money come from? Is the government just printing more?" -- Kimberly Wand, New York City

Answer: No. The presses are not running overtime. A spokeswoman from the Bureau of Printing and Engraving said the agency's print order has not increased.

LOL...notice how literally he answers the question. Another gem from that article:

...But the government is looking to have that money get spent and to have it multiplied somehow. Our economy is based on people spending money. So people saving money doesn't help.

Uh huh. Anyone who buys that load of garbage deserves what they get.

 

[gilliganscorner]

You've got it all wrong. According to the "experts", the government isn't running the printing presses.

http://finance.yahoo.com/banking-budgeting/article/106524/Your-Questions-Answered

Typical of mainstream media bleating experts. Here's my favourites:

Question: "I often hear, 'If they want to stimulate the economy, why don't they give every taxpayer $10,000?' People would buy cars, go on vacation, pay for college, buy TVs, etc. That sounds great to me. Would it work?" -- Colleen Hargis, Springfield, Mo.

Expert: Lakshman Achuthan, managing director, Economic Cycle Research Institute

Answer: "The government could give money to you or me, and that would create demand, which could be a very good way to break the recession. But you and I are not very confident about the economy, and if you think about what I'll do, there's a good chance I'm going to save it.

Right. So they give it to the banks in hopes that people will BORROW it (i.e. go into debt in this economy). How's that all working out?

Question: "I am confused about *how* the government is bailing us out of debt. Where does the stimulus money come from? Is the government just printing more?" -- Kimberly Wand, New York City

Answer: No. The presses are not running overtime. A spokeswoman from the Bureau of Printing and Engraving said the agency's print order has not increased.

In any case, that's not how the government injects money into the economy. Instead, the government sells Treasury bills - very short-term debt obligations - on the open market. When the government sells those securities, it scores cash for the reserves.

Good God, you're right. Ooops. Wrong printing press. Silly, stupid, dumbed-down American. We don't use a printing press anymore, money is simply digital bits. Now get back to work so that we can steal your productivity through taxation and inflation. Go. Now. Over there....

I just can't go on reading the article. It makes me vomit. Nice to see all the real questions vetted out.

 

[dannno]

A spokeswoman from the Bureau of Printing and Engraving said the agency's print order has not increased.

hahahah.. she needs to go talk to the guy in IT over at the Fed..

 

[gilliganscorner]

hahahah.. she needs to go talk to the guy in IT over at the Fed..

Hee hee! You're right. Can you imagine?

"We had to convert all of our servers to 64 bit architecture to keep track of all the new zeros were adding on to the dollars we create!"

 

[Feenix566]

Gold is High-risk investment because if someday "massive ancient gold" is discovered, gold price will crash rock bottom without any warning.

It's possible that more gold will be discovered, and the value of gold will go down.

It's a sure thing that more money will get printed.

It's true of any investment. Even a house's value can, and has been, going down when there are too many houses built. Every investment is a risk, even a savings account. Some are riskier than others. What do you do if your savings account doesn't appreciate faster than inflation?

Question: "I often hear, 'If they want to stimulate the economy, why don't they give every taxpayer $10,000?' People would buy cars, go on vacation, pay for college, buy TVs, etc. That sounds great to me. Would it work?" -- Colleen Hargis, Springfield, Mo.

It really grinds my gears when I hear people asking this question. Jon Stewart has been asking the same thing. Why doesn't the government just give people money? the question is based on the presumption that the money belongs to the government to begin with. That's an absurd notion! The money belongs to the people. Here's an idea: why doesn't the government just STOP TAKING people's money in the first place?

 

[Feenix566]

Here's the most absurd quote on inflation I've ever seen:

So could all this extra money accelerate inflation? Economist opinions differ.

"It's a tremendous package, so down the road it should cause inflation," Rupert said.

But Jeff Madrick, senior fellow at Schwartz Center for Economic Policy Analysis and author of the November 2008 book The Case for Big Government, said the danger is remote.


"The recession is already so deep that extra money in the system will not cause inflation in the foreseeable future, or even in the long term," he said. "As the economy tries to recover, there will be too much unemployment and too many unused factories and stores for inflation to accelerate."

What an ass-clown.

 

[Paulitician]

I agree, gold is a high-risk investment @ $900 or above. Not at $600-700 though. The only way gold will suffer major damage is if its inflation rate is higher than that of national currencies. I don't believe that is going to happen, but I could be wrong!

 

[Feenix566]

I agree, gold is a high-risk investment @ $900 or above. Not at $600-700 though. The only way gold will suffer major damage is if its inflation rate is higher than that of national currencies. I don't believe that is going to happen, but I could be wrong!

The only way gold could be a bad investment is if you buy during a speculative bubble brought on by fears of impending inflation that turn out to be unfounded.

 

[MachM]

Found this in other forum. Any idea about it:

Remember the Gold Confiscation Act of 1933. No one except the Government could possess GOLD.

Public holders were forced to redeem all Gold or face a $10,000 fine a PRISON.

I would hate to think that this is coming.

The rumor is a World or Global Currency with restrictions on gold bullion ownership?

 

[MachM]

Why has gold not reached $2000 per ounce by now when the world economy is in worst-ever deflation and all other investments stocks, real estates, commodities, banks have crashed. Gold rises to $930 and then goes back to $870.

With the present world situation Gold should reach $5000 per ounce by year 2009 end.

There is definately some problem with Gold market.

 

[Bruno]

Why has gold not reached $2000 per ounce by now when the world economy is in worst-ever deflation and all other investments stocks, real estates, commodities, banks have crashed. Gold rises to $930 and then goes back to $870.

With the present world situation Gold should reach $5000 per ounce by year 2009 end.

There is definately some problem with Gold market.

Manipulation of the market. Also, the U.S. dollar has done fairly well as other currencies are doing worse because their economies are in even worse shape than ours.
When the inflation kicks in from the trillions created in the past six months, you will see gold and everything else rise in price.

It really grinds my gears when I hear people asking this question. Jon Stewart has been asking the same thing. Why doesn't the government just give people money? the question is based on the presumption that the money belongs to the government to begin with. That's an absurd notion! The money belongs to the people. Here's an idea: why doesn't the government just STOP TAKING people's money in the first place?

No doubt. This just shows how ignorant most people are. The same goes when people say, "The government should pay for this or that!" Just insert "my friends, family, and neighbors who I don't even know" for the word "government". That's lost on most folks.

 

[gilliganscorner]

Why has gold not reached $2000 per ounce by now when the world economy is in worst-ever deflation and all other investments stocks, real estates, commodities, banks have crashed. Gold rises to $930 and then goes back to $870.

With the present world situation Gold should reach $5000 per ounce by year 2009 end.

There is definately some problem with Gold market.

There is. Have you been to gata.org?

 

[fatjohn]

you guys seriously need to hang a poster above your bed of the dow vs gold, maybe then you will finally start stating the obvious that they will meet parity once again.

 

[gaazn]

There is no rational reason why gold is worth at such a high premium versus silver, except that is what people believe that it should be worth. The belief is tied to a financial system that is crashing. If the financial system crashes, will gold be taken down too?