People who say gold is a bad investment because of 1979/80 spike

[thegoldview]

Wow ILUVRP I think your right. Can someone chime in here. Was the rise and collapse in the gold price in 1979/1980 simply because of the hunt brothers or did it have something to with Volcker's interest rate rise?

 

[ILUVRP]

I have always thought that in the early 80's when gold went to about $875/oz it was just following silver when Bunker Hunt/an Arab and some one in South America were trying to corner the Silver market.

Comex changed the contract limits you could have and increased the margin to a gaint number and ran them out.

 

[SevenEyedJeff]

It wouldn't be a bad investment if they hadn't chased a parabolic spike. It has turned out to be a good investment if you had gotten in at any other time IMHO. You're supposed to buy low and sell high - if not, don't blame gold.

 

[Jordan]

It wouldn't be a bad investment if they hadn't chased a parabolic spike. It has turned out to be a good investment if you had gotten in at any other time IMHO. You're supposed to buy low and sell high - if not, don't blame gold.

"It's a good investment, but only if you buy at the right time. In retrospect, it was obviously inflated, so it must've appeared the same then, too."

 

[psi2941]

Wow ILUVRP I think your right. Can someone chime in here. Was the rise and collapse in the gold price in 1979/1980 simply because of the hunt brothers or did it have something to with Volcker's interest rate rise?

just be prepared to unload all your silver and gold when the gold to dow becomes 1 to 1

 

[Arklatex]

$$$ is imaginary.

Gold is real.

 

[psi2941]

$$$ is imaginary.

Gold is real.

yes but like all things gold and silver will end up in a bubble

 

[DFF]

Eventually, yeah. But we got a long f'ing way till' "eventually."

 

[cubical]

just be prepared to unload all your silver and gold when the gold to dow becomes 1 to 1

and move into what?

 

[JoshLowry]

and move into what?

 

[psi2941]

and move into what?

what ever comes your way that seems like a good deal.

 

[Godisnowhere]

silver bubble

I keep hearing babblers talking about a silver bubble. Fact 100 Billion of USD is being printed a month. Fact the increase of money supply is inflation. Fact Silver inventory is incredibly small. Fact Silver mining cost is high. Is it time to sell silver? Sell me all you have and weep later.

 

[psi2941]

Fact Silver inventory is incredibly small.

according to who? jonathan lebed?

Fact Silver mining cost is high.

no its not

Is it time to sell silver?

i agree its not time to sell, but once dow and silver is 1to1 there might be some buying opportunities.

Sell me all you have and weep later.

sure after the dow gets to 1 to 1 and if i don't see any more inflation pressures

 

[xd9fan]

1980 was just what you said....a spike
Gold is now in its TEN YEAR bull run.

whats differant?

well we are no longer just 9 years from (aug 1971) being taken off the gold standard.

there is no paul Volker that will defend the dollar.......who out there now??? timmy?.....2011 tax hike are coming and the tea party cant stop them.

The debt numbers in 2010 vs 1980.......huge difference.

we no longer have the leverage of forcing other countries to use our dollar (while we supply armed protection from the soviets) that is gone.


I seriously have no idea why people today even bring up 1980....

 

[Seraphim]

Ignorance...

1980 was just what you said....a spike
Gold is now in its TEN YEAR bull run.

whats differant?

well we are no longer just 9 years from (aug 1971) being taken off the gold standard.

there is no paul Volker that will defend the dollar.

The debt numbers in 2010 vs 1980.......huge difference.

we no longer have the leverage of forcing other countries to use our dollar (while we supply armed protection from the soviets) that is gone.


I seriously have no idea why people today even bring up 1980....

It's sad, but a lot of people are going to get hit by "the train" in the coming decade.

Evolution is adaptation. If one clings to old models of living ones life despite all rational evidence supporting the contrary, you have only yourself to blame when the train hits you.

 

[xd9fan]

are you saying that I am Ignorant?

 

[AlexMerced]

I'd be hard pressed if somebody was manipulating the gold price upwards privatley that someone wouldn't call them out and short sell them back into reality.

I mean sure they could have pushed the price of gold a bit, but again this is only a problem of a government monopoly over money. If you had competing currnecies people could divest into a silver currency or even other gold currencies since it'd be more based on the banks reserve ratio.

 

[Seraphim]

are you saying that I am Ignorant?

No lol I'm fully on your side. I am saying that people who see 1980 as a reason why gold sucks are ignorant. Lol

 

[Zippyjuan]

You can count me as one of the people skeptical of buying gold now based on my experience with it in the 1980 bubble. I heard a lot of the same things I hear now- "this time it is different". "Gold will go to $2000 or $5000!" "You can't lose buying gold". Similar things were also said during the Stock Market bubble and the Housing bubble. This track record makes me less willing to buy gold today. I was talked into buying near the peak- paying over $600 for one ounce and about $700 for another. Adjusting for inflation, I am still losing money on that- 30 years later. Will it go down? Will it go up? Nobody can say for sure. But having been burned before, I am not going to put money on it being different this time. This is a personal experience and opinion. I know there are many who disagree and buy gold for different reasons. That is fine for them- it is just not inviting to me.

 

[PaulFrazee]

Gold has the potential to be one of the more stable long-term investments, but the 1980s spike is exactly why we could never settle on a gold-standard. It would leave our economy far too vulnerable to manipulation by outside forces.

As problematic as Federal money-printing is, it's still something we can correct through better leadership.