GOLD HITS 900!!! made 25k in last 12 hours

[krazy kaju]

Wouldn't you say that the second mortgage crash would cause more deleveraging and possibly push gold lower for a month or two?

 

[krazy kaju]

anybody who says 5% is a lot of money is either very rich or very poor.

Five percent is a huge gain on your investment in anything less than two months.

 

[Josh_LA]

Five percent is a huge gain on your investment in anything less than two months.

that is not true for me at all. especially being in commodities I know how long it takes to close a deal. usually quick jumps are coupled by undos and after 2 months is another different story.

 

[matthalifax]

Josh_LA I think that rich people including me if you want classify me as that, It's all relative I'd be poor compared to some of my friends are lucky fuckers. In Nichols Nassim Taleb's book he talks about the social injustice of scalable activities and investing is one of them. Scalable is defined as something than can be reproduced by little or no effort. So a baker everytime he wants to please a customer he has to spend the time baking that customers cake. While an author if put in the baker 'analogy' would only have to cook one brilliant cake for everyone. Scalability greats very few winners and many losers. Others include music , movies etc

If I was to invest 10 million in gold and you were to invest 100,000 and it went up 10 percent I would earn 1 million while you would earn 10,000 even though we spent the same amount of effort and energy investing our money. That folks is why the rich stay rich and the poor stay poor most of the time.

 

[Josh_LA]

If I was to invest 10 million in gold and you were to invest 100,000 and it went up 10 percent I would earn 1 million while you would earn 10,000 even though we spent the same amount of effort and energy investing our money. That folks is why the rich stay rich and the poor stay poor most of the time.

If you had 100x what I have, I'd hope you're smart enough to invest in better places that'll make you more money than gold alone. But yes, no doubt rich people are safer if they're smarter.

 

[matthalifax]

guys I had a 5 percent increase last night and a 10 percent increase over the last 6 weeks in AUSTRALIA! The us dollar is overvalued due to deleveraging just be patient and wait for your profits greedy americans! lol.

To make 15 percent in under 2 months is incredible for a safe investment like gold which holds it's value over time. The best performing commodity and has been used for money over 4000 years. I mean cmon people jizzed their pants getting 10 percent off madofff per year.

 

[krazy kaju]

that is not true for me at all. especially being in commodities I know how long it takes to close a deal. usually quick jumps are coupled by undos and after 2 months is another different story.

Boy, are you throwing around those ad hocs and straw men today. You said that 5% returns on your investment is not a lot. I said that making 5% profits on investments in anything less than two months is a big thing. I didn't say ANYTHING about the amount of time that it takes to close a deal or the volatility of stocks/commodities/options/etc. Well let's see. If you make exactly 5% profits on your investments every two months that would be 30% profit over a year long period. In other words, if you invested $10,000, at the end of year one you would have $10,000 x 1.3 = $13,000. Compare that to the average stock yield of 10%, which would net you only $1,000 in profits.

My basic point was that maybe you should reconsider your statement that 5% gains aren't much. They can be very much in such a short time period. If you really believe that gold is so volatile that it'll come back down, wiping away those gains, you should have stated that instead.

 

[krazy kaju]

Wouldn't you say that the second mortgage crash would cause more deleveraging and possibly push gold lower for a month or two?

^ I would like to see this answered, Matt.

 

[matthalifax]

yeah Josh that was hypothetical lol. we'll see, Josh remember me in six months time. You may say you should have your money elsewhere than gold I would agree with any year but this year. There is nothing that responds to financial destruction better than gold, the only thing that is unimpaired to this crisis are commodities. I don't believe there's a better thing to hold right now than gold. Will things outpeform gold? Definitely but what are your chances of picking them unless you have inside knowledge. Lets face it the super rich can manipulate markets very easily they get the big gains and unfortunately the small people rarely do. Gold is one way in this climate right now to take advantage of being in the minority. The public won't wake up to gold until it's like doubled because there will always be someone saying OMG look gold dropped!! what a terrrible investment. There has probably not been a time in history better to buy gold now IMHO.

 

[Josh_LA]

guys I had a 5 percent increase last night and a 10 percent increase over the last 6 weeks in AUSTRALIA! The us dollar is overvalued due to deleveraging just be patient and wait for your profits greedy americans! lol.

That's exactly why I said 5% isn't much (certainly not enough you'd rush and cash in on it). I'm not being sour grapes, I'm just as in metal as you are, and I love to see it appreciate through the roof.

To make 15 percent in under 2 months is incredible for a safe investment like gold which holds it's value over time. The best performing commodity and has been used for money over 4000 years. I mean cmon people jizzed their pants getting 10 percent off madofff per year.

that's why I'm in silver, because it's more rare, gets bought up quicker, and is consumed faster. yes, people do jizz their pants for 10% a year, and those people are equally stupid (or appreciative) as people who get 3% a year on bonds or CDs in my book.

I do own a business, so I know 10% a year is just not enough (and definitely TOO MUCH if it's to allow somebody else to play with my money). I would never invest money unless I see 10% a month coming.

 

[Josh_LA]

yeah Josh that was hypothetical lol. we'll see, Josh remember me in six months time. You may say you should have your money elsewhere than gold I would agree with any year but this year. There is nothing that responds to financial destruction better than gold, the only thing that is unimpaired to this crisis are commodities.

Yes there is, at least in America, forcelosed housing.
Retail and resell (my eBay business is much smaller scale, but I can see it as something better than sitting on gold).

Both of these examples take lots of time and labor, so yes I agree, that if you don't have time, gold is best to sit on.

But if you have so much in gold, you probably want silver too, just think about how many people with 1/10 of your money can buy silver. And other foreign currencies.

I don't believe there's a better thing to hold right now than gold. Will things outpeform gold? Definitely but what are your chances of picking them unless you have inside knowledge. Lets face it the super rich can manipulate markets very easily they get the big gains and unfortunately the small people rarely do. Gold is one way in this climate right now to take advantage of being in the minority. The public won't wake up to gold until it's like doubled because there will always be someone saying OMG look gold dropped!! what a terrrible investment. There has probably not been a time in history better to buy gold now IMHO.

time will tell. and I hope it's the best as much as you do.

 

[Zippyjuan]

you own 500+ ounces of gold?

Jesus

If as he says, he put a half a million dollars into gold about four weeks ago (when it was around $800 an ounce- I will use that figure) that is 625 ounces of gold. At 12 troy ounces per pound, that comes to 52 pounds of gold. Sorry- I like to play with numbers.

How does Australlia tax you on reselling your gold? I see your top marginal rate on income is 45%. Here you get hit with something like a 25% gains tax on profits selling your gold. What about sales comissions to buy / sell? At that $ 500,000 worth you bought the fees should be fairly low. A four or five percent gain here would still leave you short of your original investment after fees are included.

 

[Josh_LA]

. A four or five percent gain here would still leave you short of your original investment after fees are included.

thank you.

that's exactly why I said 5% isn't anything and nobody would sell at 5% (unless they're in a rush to cut and run before worse)

even an eBayer knows that eBay fees are 12%
Now I know, he didn't buy it 12 hours ago to make 5%.

 

[matthalifax]

Krazy,

once the 2 mortgage wave hits i dont' think people will be fleeing to the dollar by then even if they are by the time the crisis gets that bad don't expect any gold to be left.

the way i see it is right now the dollar is going up, okay it's rallying.

As you know there is a definitive amount of gold in this world and supply is falling right now. I've been following every piece of news about gold negative and positive and there's not one coin shop, one refinery, one mint that isn't being pushed to the limit.

It is nuts, if you are computer smart and now how to search the internet well for news you will see this.

Back to your point so people are moving into the US dollar but also people are moving into gold. Gold is becoming more and more attractive everday and is becoming more and more in demand. The only reason gold isn't up 40 percent in the US is because the people moving into the US dollar have outweighed the people moving into Gold and there's still supply of gold left. Trust me there will be a squeeze on gold and that's when gold prices will skyrocket. But until the supply gets gobbled up we will see average gains up and downs in gold. But as demand across the globe increases supply will decrease (production is also decreasing) because of funds and it won't matter what is happening with the dollar it will just be the fact that there won't be enough gold to go around.

Evidence of that showed today. Gold went up 3 or 4 percent i believe in the US yet the US dollar went up. Why? Because people in britain, europe, australia, china are buying gold and that outweighed the us dollar rally.

You have to understand that the even conservative (as in safe) commentators are predicting it's going to get worse that only means more demand for gold. Look up the top refinery in Switzerland they're demand is up 1000 percent when is this going to translate into prices? Once supply is gobbled up and it will happen.

Look how much China is increasing their gold reserves. China has something like less than 1 percent of their foreign reserves in gold while most western countries have over 50 percent of their foreign reserves in gold. Once China stops smoking US treasuries your going to see just havoc. Gold is the lifeboat of Titanic. I don't expect you to believe me but do look at the people who have got it right time and time again Celente, Rogers these guys know what they are talking about. In 6 months you'll see anyway

 

[krazy kaju]

My main issue is that a second mortgage crisis might force banks to shore up reserves again, causing a temporary wave of price deflation.

 

[matthalifax]

as far as the exact numbers go I'd have to look at my spreadsheet and work at the taxes but that's past the point. I didn't buy gold to sell in a month the fact is i bought to sell in 2-3 years. The fact is 15 percent in one month and the economic crisis has hardly begun. Can you imagine gold in 6 months. I mean mortgages will be resetting for the next 2 years. The mortgage guy on 60 minutes who's been right about sub-prime predicted 70 percent will fail with at least 50 percent. Do you realize the implications here!!!!

 

[Josh_LA]

Krazy,

once the 2 mortgage wave hits i dont' think people will be fleeing to the dollar by then even if they are by the time the crisis gets that bad don't expect any gold to be left.

the way i see it is right now the dollar is going up, okay it's rallying.

I don't care about the dollar.

As you know there is a definitive amount of gold in this world and supply is falling right now. I've been following every piece of news about gold negative and positive and there's not one coin shop, one refinery, one mint that isn't being pushed to the limit.

If you believe this, you should really have more silver, since we actually use it up daily (unlike gold, kept in jewelry)

It is nuts, if you are computer smart and now how to search the internet well for news you will see this.

Back to your point so people are moving into the US dollar but also people are moving into gold. Gold is becoming more and more attractive everday and is becoming more and more in demand. The only reason gold isn't up 40 percent in the US is because the people moving into the US dollar have outweighed the people moving into Gold and there's still supply of gold left. Trust me there will be a squeeze on gold and that's when gold prices will skyrocket. But until the supply gets gobbled up we will see average gains up and downs in gold. But as demand across the globe increases supply will decrease (production is also decreasing) because of funds and it won't matter what is happening with the dollar it will just be the fact that there won't be enough gold to go around.

Evidence of that showed today. Gold went up 3 or 4 percent i believe in the US yet the US dollar went up. Why? Because people in britain, europe, australia, china are buying gold and that outweighed the us dollar rally.

You have to understand that the even conservative (as in safe) commentators are predicting it's going to get worse that only means more demand for gold. Look up the top refinery in Switzerland they're demand is up 1000 percent when is this going to translate into prices? Once supply is gobbled up and it will happen.

Look how much China is increasing their gold reserves. China has something like less than 1 percent of their foreign reserves in gold while most western countries have over 50 percent of their foreign reserves in gold. Once China stops smoking US treasuries your going to see just havoc. Gold is the lifeboat of Titanic. I don't expect you to believe me but do look at the people who have got it right time and time again Celente, Rogers these guys know what they are talking about. In 6 months you'll see anyway

all this I already know. my point was, that 5% in a day is nothing compared to what will happen later.

 

[Josh_LA]

My main issue is that a second mortgage crisis might force banks to shore up reserves again, causing a temporary wave of price deflation.

yes, just a matter of how bad it gets, how good the opporunity it'll be.

 

[matthalifax]

dude ebay business is down 20 percent. they are not going to fare that well in a recession/depression. People don't buy necessities of Ebay and that's where the money will being made not in anything else IMHO

 

[matthalifax]

i'm in the process of getting my hands on some serious quantites of silver. The amount of silver in the world is ridiculous I remember hearing a figure somewhere around 10 billion or something. But it's going to take a while to follow gold. The thing with Gold is it's more mainstream hedge funds buy it, people trust it more than silver. How often do you hear silver discussed on TV? some people think your crazy when you buy silver lol. But i think your right their will be more profits to be made in silver but it wont happen until people are baffled buy gold prices and look for something cheaper