The whole "Gold Rush" going on

[christagious]

Okay I'm sure all of of have heard about gold going to over 1,000 dollars an ounce. Here's my question(s):

I just saw something on the news about the "gold rush" and how people are scrambling to gather up old jewelry to sell since it's worth so much now. I was thinking "what a dumb idea, lets exchange gold for a dollar that won't be worth anything soon" and I was thinking "shouldn't people be buying and investing in gold, not selling it?" Am I right with this line of thinking?

And...

Can we expect the price of gold to continue going up and I should maybe buy some now OR can we expect some sort of drop in the near future that would make a good time to buy some up?

I'm trying to think of the best thing to do right now, I can't afford much because because I'm practically broke but if possible I'd like to buy some gold but I don't want to buy some and then in a few months or a year find out that gold goes down a couple hundred per ounce.
And if I should buy some gold where should I buy it from and what can I plan on doing with it in the future?

 

[SevenEyedJeff]

If you don't have much money, I would concentrate on getting silver right now whenever you can afford a little. It's $ 21 an ounce right now, whereas even a tenth of an ounce of gold is $ 100.

Besides, as gold rises, generally silver increases at a greater rate percentage-wise than gold.

 

[christagious]

If you don't have much money, I would concentrate on getting silver right now whenever you can afford a little. It's $ 21 an ounce right now, whereas even a tenth of an ounce of gold is $ 100.

Besides, as gold rises, generally silver increases at a greater rate percentage-wise than gold.

Thanks. So for sure silver's a good idea as well then?

And where can I purchase gold and silver? I'd like some legit sites or something to buy from.. I would like to physically have it, not just have it invested somewhere, I don't really trust that.

 

[ChristopherJ]

IMO when they start telling everyone they should sell their gold on TV you should be buying.

Having said that and again IMO people need to stop thinking about gold and silver as an investment and start thinking about it as a way to protect your money from inflation.

You should buy what you can afford to save long term. There is a thing called averaging which means if you buy 1 ounce of gold at $1k/ounce and if the price drops to $500/ounce you buy another ounce and your effective cost drops to $750 per ounce. When you do this over the long term it limits your exposure to short term price fluctuations.

It is possible to realize gains in the short term if you are able to predict the market but I'm not that smart. I buy precious metals as a long term savings. 1 ounce of gold will always be worth 1 ounce of gold.

 

[christagious]

I'm about to start gold prospecting

 

[AceNZ]

Thanks. So for sure silver's a good idea as well then?

And where can I purchase gold and silver? I'd like some legit sites or something to buy from.. I would like to physically have it, not just have it invested somewhere, I don't really trust that.

There are a bunch of threads about this. Search is your friend.

If you're looking to buy physical gold or silver online, you might try apmex.com -- they have a very good rep. Or go to a local coin store. Just check prices online first so you know if you're paying too much.

No one can say for sure what the price will be in the future. There might be price corrections; maybe even big ones. But if you're buying for the long-term, it doesn't matter. Think of gold and silver more as a store of value than as an investment. You might not make a lot of money with them in terms of purchasing power, but you will at least preserve the purchasing power you already have.

 

[Acala]

Think of the alternative

As AceNZ has said, (and he is always right!) think of silver and gold not as a short term investment but a shelter for value.

Also, think of the alternative. The dollar is collapsing. Any dollars you hold, in the bank, in stocks and bonds, or in your mattress, are losing value at 10% a year or more. And the rate of decay is likely to increase because everyday the Fed or the government does something to increase the money supply. I think it is very dangerous to hold dollars now. Maybe land will be the best place to park you wealth at some point in the future when prices hit bottom. But for now, it looks like precious metals to me.

 

[Brent H]

There is an entire forum devoted to these types of issues at www.goldismoney.info

 

[Truth Warrior]

From Ron, today.

What the Price of Gold Is Telling Us
by Ron Paul
http://www.lewrockwell.com/paul/paul445.html

 

[banjojambo9]

http://www.foreignaffairs.org/20070501faessay86308-p0/benn-steil/the-end-of-national-currency.html

 

[Cowlesy]

From Ron, today.

What the Price of Gold Is Telling Us
by Ron Paul
http://www.lewrockwell.com/paul/paul445.html

Great find, thanks!!!

 

[Truth Warrior]

Great find, thanks!!!

You're welcome!

Enjoy, I certainly did.

I always just love it when Ron speaks TRUTH to power.

 

[JSCHAFER1337]

http://www.foreignaffairs.org/20070501faessay86308-p0/benn-steil/the-end-of-national-currency.html

Amero, anyone?