Gold or gold stocks?

MrBurns · 22 January 2009

I'm starting to think it's getting close to where it will become apparent that some currencies will collapse, perhaps USD or the pound.

So gold is probably a good choice about now, get in before the rush, but do you buy physical gold from say the Perth Mint and have them store it or do you buy gold stocks ??????????

sinner · 22 January 2009

Re: Gold or gold stocks....

There is already a "Buying gold" thread Mr Burns, check it out, lots of people asking the same q.

Buy before the rush was 2000...we have already approached <10:1 on the dow:gold, it's almost time to sell OUT of gold!

MrBurns · 22 January 2009

Re: Gold or gold stocks....

sinner said:
There is already a buying gold thread Mr Burns, check it out.

Buy before the rush was 2000...we have already approached <10:1 on the dow:gold, it's almost time to sell OUT of gold!

I couldn't find that thread......thanks for the info but wont gold go through the roof if a currency looks shaky ?

investorpaul · 22 January 2009

Re: Gold or gold stocks....

MrBurns said:
I couldn't find that thread......thanks for the info but wont gold go through the roof if a currency looks shaky ?

Dont forget though that the price of gold would already have factored in (to a degree anyway) the potential for currencies to drop/increase volatility

MrBurns · 22 January 2009

Re: Gold or gold stocks....

investorpaul said:
Dont forget though that the price of gold would already have factored in (to a degree anyway) the potential for currencies to drop/increase volatility

Ok so golds out, might as well wait as long as possible and put it into real estate if the banks will still give it back to me by then.

disarray · 22 January 2009

Re: Gold or gold stocks....

MrBurns said:
I couldn't find that thread

in the commodities forum

explod · 22 January 2009

Re: Gold or gold stocks....

investorpaul said:
Dont forget though that the price of gold would already have factored in (to a degree anyway) the potential for currencies to drop/increase volatility

How can you justify such a statement. Debt levels mean currencies a long way to fall yet and gold, inflation adjusted to the peaks of 1979/80, should go to at least $US 3,500 an ounce. It is just beginning and if you look at the market objectively, gold is the only safe investment in town.

MrBurns · 22 January 2009

Re: Gold or gold stocks....

explod said:
How can you justify such a statement. Debt levels mean currencies a long way to fall yet and gold, inflation adjusted to the peaks of 1979/80, should go to at least $US 3,500 an ounce. It is just beginning and if you look at the market objectively, gold is the only safe investment in town.

So physical gold or gold stocks !

Glen48 · 22 January 2009

Mr. B. I have a mate who sells Gold either as scrap or such thing as necklaces. bracelet's or coins.
At present about $ 20 a gram at least you have it in you hot hand and like me and curl up with it in the Fetal position, Missionary use to be good from memory but I digress.
I am assuming holding solid Gold pieces is the safest way rather than wondering if the crunch comes will the Mints etc deliver.
Peter Schiff claims it could go to $35K and OZ.
I think once the B.O. dream turns into a nightmare Gold will be the next best bet.

sinner · 22 January 2009

You just refuse to DYOR huh MrBurns?

If you are banking on $3500 gold, then you want in on physical gold because most governments around the world will simply force default of ETFs and holding schemes by making it illegal to hold gold or create a gold wealth tax etc if things get so bad.

I think gold is already approaching overvalued and will just hold around this 700-900 area with some upside potential into the low 1000s.

I doubt we will see POG higher than this at least until 2010. Dow:gold ratio is a good indicator of this, I'm not sure why people feel it is safe to ignore. Much more likely for the dow to fall than gold to push higher yet. We will need real inflation for that.

disarray · 22 January 2009

Re: Gold or gold stocks....

MrBurns said:
So physical gold or gold stocks !

or both

MrBurns · 22 January 2009

sinner said:
You just refuse to DYOR huh MrBurns?

No point when there's experts already on tap in here.

If Govt's take that sort of action if things get real bad it makes the whole exercise a bit like something out of a movie.

I dont think I could hoard gold under the house and chisel bits off to go shopping.

Which gets me back to real estate, cant be confiscated or disappear.

investorpaul · 22 January 2009

Re: Gold or gold stocks....

explod said:
How can you justify such a statement. Debt levels mean currencies a long way to fall yet and gold, inflation adjusted to the peaks of 1979/80, should go to at least $US 3,500 an ounce. It is just beginning and if you look at the market objectively, gold is the only safe investment in town.

I didnt say Gold wouldnt go higher. I just said that the market has already factored in future risk to currencies, hence pushing the price of gold to its current level.

They (traders/investors) COULD have it wrong and not have factored in enough risk of currency collapse/volatility. If the market decides that they havnt factored enough the correct risk level in the price of gold could go up, as it is a safe/secure option. If however the level of risk factored in is correct of too much the price will stay the same/drop.

Just as you have asked me to justify my statement, how can you justify Gold going to $3,500 an ounce?

Nyden · 22 January 2009

MrBurns said:
No point when there's experts already on tap in here.

If Govt's take that sort of action if things get real bad it makes the whole exercise a bit like something out of a movie.

I dont think I could hoard gold under the house and chisel bits off to go shopping.

Which gets me back to real estate, cant be confiscated or disappear.

Not out of a movie Burns, but the history books. I believe (could be wrong?) it was illegal to hold gold during the depression.

My own opinion? I've stated many times that I don't believe gold to be a good investment - one of the reasons being that the gold bugs are just so darn whacky

MrBurns · 22 January 2009

Nyden said:
Not out of a movie Burns, but the history books. I believe (could be wrong?) it was illegal to hold gold during the depression.

My own opinion? I've stated many times that I don't believe gold to be a good investment - one of the reasons being that the gold bugs are just so darn whacky

I think I'm starting to feel the same way.

hotbmw · 22 January 2009

buy gold coins from the perth mint mr burns.
wait for a short term dip to 750-800 and stock up as its going to go sky high within 12-18mths!

explod · 22 January 2009

Re: Gold or gold stocks....

investorpaul said:
Just as you have asked me to justify my statement, how can you justify Gold going to $3,500 an ounce?

I did say on an inflation adjusted basis. You only have to do the sums.

One is that in 1980 the Dow was at 900 points, today it is at 8,200

So on that equation gold should be at or head to $9,000 per ounce but prefer to keep projections on the conservative side.

Matthew888 · 22 January 2009

Mr Burns,

Just in case you decide to buy physical gold, FYI I inquired about purchasing physical gold from Perth Mint a few weeks ago. They said they had a back log, and if you were purchasing even in moderate amounts there was a 6 week wait. You could however pay a deposit/ transfer funds in to their account and receive the physical in 6 weeks at todays price.

Don't forget transport costs if you don't live in Perth. To get the neighbours interested, if you're puchasing a large amount and you don't wish to carry it, they can organise for it to be delivered to your door by a security van.

hotbmw · 22 January 2009

thats right. 6 weeks isnt too long though.

plus you have a 1% insurance fee (optional)
plus $17.50 delivery fee per kg

sinner · 22 January 2009

Or if you had done your own research you would realise you could buy from ABC with no delay. This thread stinks of unfounded claims and poor advice already.

Gold or gold stocks?

MrBurns

sinner

MrBurns

investorpaul

MrBurns

disarray

explod

explod

MrBurns

Glen48

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sinner

disarray

MrBurns

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Nyden

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MrBurns

hotbmw

explod

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Matthew888

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