What is the deal with gold?

[livnxxxl]

Everywhere I look these days I see and hear people wanting to buy gold. I have never seen so many people come out of the wood work wanting gold all of a sudden.

Anyone know what the heck the deal is with everyone wanting gold? What are they doing with it once they get it? I know must of them are melting it down or so they say anyway. There has to be more to the story than this. There has to be a really good reason why so many people are offering top $$$ to buy it right now.

I have gold and I am holding on to it. I would actually like to buy even more of it although the price is too high for me to buy right now. I am hoping that it will come back down in price the way that is was before the "so called recession" kicked in.

So far my only take on it is that dealers are buying it up then melting it down and reselling it as new jewelry to suckers at over priced jewelry stores at the mall for a huge profit.

Anyone???

[MegoSteve]

Gold's price has gone way up since the stock market tanked. Investors got scared and threw their dough into gold, driving the price up.

The people that are advertising to buy it are paying a fraction of the value. They know that in desperate times, there will be more sellers willing to part with the gold they have.

[vulcan2074]

I was thinking the same thing a while back.

Gold is at an all time high, so it doesn't make sense to buy it.

Maybe people are so spooked that paper money is going to be worth nothing.

I love gold jewelery but the way prices are I'm not in any rush to get anymore.


Sammy

[thunderbolt]

And here I figured it was for all the etched gold diabetes test strips they sell on all the other commercials.

[livnxxxl]

I was thinking the same thing a while back.

Gold is at an all time high, so it doesn't make sense to buy it.

Maybe people are so spooked that paper money is going to be worth nothing.

I love gold jewelery but the way prices are I'm not in any rush to get anymore.


Sammy

I am with you there. You and I think so much a like on a lot of things that it is almost scary.

Just out of curiosity sake lets say hypethetically that IF paper money ends up being worth nothing what makes people think that gold which is only but just a precious metal will be worth anything as well?

[livnxxxl]

And here I figured it was for all the etched gold diabetes test strips they sell on all the other commercials.

Maybe Dr. Mego/EMCE is going to start making rare limited edition 24K gold chase figures. Now that would be awesome! Not that I could actually see that happening. It doesn't hurt to dream a little bit.

[The Bat]

Here is what history has shown us about printing Paper Money out of "thin air"...like the Federal reserve is doing right NOW:

Probably almost everyone is familiar with the hyperinflationary episode that engulfed Germany after the First World War. That nation’s economy was crippled by monetary problems that resulted in dreadful personal hardships, even though up to that time Germany had achieved one of the highest living standards in the world.
The newly formed German government, named for the city where their constitution was drafted after the Kaiser’s abdication in 1918, kept pumping up the money supply. The process started relatively slowly, but quickly the pace of money creation accelerated.
The Weimar government was paying its bills on credit – just like Zimbabwe is now doing. The Weimar government was issuing currency in exchange for valuable goods and services that it was receiving, and the vendors of those goods and services accepted the newly issued currency in the expectation that they would be able to exchange it for goods and services of like value. However, they soon realized that they were deluding themselves. Prices were rising rapidly, with the consequence that a flight from the currency into commodities and other tangibles began.
There was no discipline on the creation of new currency, with the result that it was being issued to excess. Within a few short years, the German government eventually destroyed the Reichsmark, the currency it had been issuing, making the words Weimar Germany synonymous with hyperinflation, economic collapse, deprivation and personal hardship. All the wealth saved in Reichsmarks was wiped out.

The Federal Reserve is following the footsteps of the central bank in Weimar Germany. It is the same path taken by many central banks that have issued countless fiat currencies based on nothing but government promises. It is the path to the fiat currency graveyard, and the once almighty US dollar – which long ago used to be “as good as gold”, just like the Reichsmark once held that same exalted title – is knocking at the graveyard’s gate.
This insight about the importance of gold and shortcomings of fiat currency is not suprising, nor is it new. Here is what Rep. Howard Buffett, father of Wall Street legend Warren Buffett, had to say on May 4, 1948. “Our finances will never be brought into order until Congress is compelled to do so. Making our money redeemable in gold will create this compulsion.”
Absent that compulsion, the dollar is going the way of the Reichsmark. Don’t count on the US government to do the right thing and make the dollar redeemable into gold. Instead, take those steps necessary to protect yourself and your family to prepare for the dollar’s inflationary collapse. Buy gold. Buy silver. Avoid the US dollar.

[toysrus]

Awesome post Bat! You seem to be well aware of whats going on right now in America! Gold & Silver is a smart investment for sure, i wouldnt spend all your moola on it, but buy what you can afford. I personally feel having the physical silver & gold would be best. Guns & ammo rarely drop in price either!

Here is what history has shown us about printing Paper Money out of "thin air"...like the Federal reserve is doing right NOW:

Probably almost everyone is familiar with the hyperinflationary episode that engulfed Germany after the First World War. That nation’s economy was crippled by monetary problems that resulted in dreadful personal hardships, even though up to that time Germany had achieved one of the highest living standards in the world.
The newly formed German government, named for the city where their constitution was drafted after the Kaiser’s abdication in 1918, kept pumping up the money supply. The process started relatively slowly, but quickly the pace of money creation accelerated.
The Weimar government was paying its bills on credit – just like Zimbabwe is now doing. The Weimar government was issuing currency in exchange for valuable goods and services that it was receiving, and the vendors of those goods and services accepted the newly issued currency in the expectation that they would be able to exchange it for goods and services of like value. However, they soon realized that they were deluding themselves. Prices were rising rapidly, with the consequence that a flight from the currency into commodities and other tangibles began.
There was no discipline on the creation of new currency, with the result that it was being issued to excess. Within a few short years, the German government eventually destroyed the Reichsmark, the currency it had been issuing, making the words Weimar Germany synonymous with hyperinflation, economic collapse, deprivation and personal hardship. All the wealth saved in Reichsmarks was wiped out.

The Federal Reserve is following the footsteps of the central bank in Weimar Germany. It is the same path taken by many central banks that have issued countless fiat currencies based on nothing but government promises. It is the path to the fiat currency graveyard, and the once almighty US dollar – which long ago used to be “as good as gold”, just like the Reichsmark once held that same exalted title – is knocking at the graveyard’s gate.
This insight about the importance of gold and shortcomings of fiat currency is not suprising, nor is it new. Here is what Rep. Howard Buffett, father of Wall Street legend Warren Buffett, had to say on May 4, 1948. “Our finances will never be brought into order until Congress is compelled to do so. Making our money redeemable in gold will create this compulsion.”
Absent that compulsion, the dollar is going the way of the Reichsmark. Don’t count on the US government to do the right thing and make the dollar redeemable into gold. Instead, take those steps necessary to protect yourself and your family to prepare for the dollar’s inflationary collapse. Buy gold. Buy silver. Avoid the US dollar.

[vulcan2074]

I am with you there. You and I think so much a like on a lot of things that it is almost scary.

Why yes it is LOL

Just out of curiosity sake lets say hypethetically that IF paper money ends up being worth nothing what makes people think that gold which is only but just a precious metal will be worth anything as well?

Well thats easy to answer. There gonna be smashing each other over the head with gold bars and stealing each others goods LOL
Sammy

[MegoMark71]

yes well said. Gold can be traced back as far as currency and has never depreciated. it is a safe investment. If you keep it locked up and safe

[The Bat]

Our founding Fathers were strongly opposed to Paper Currency. We're seeing the reasons why now...allowing the Federal Reserve to be created, was Woodrow Wilson's biggest mistake...which he later admitted.

[toys2cool]

This guy's buying it all

[WannabeMego]

Gold is only worth as much as people are willing to pay for it, oddly enough, just like Megos and anything else in life...

Not that long ago (compared to how old the Earth is), Fancy, Shiny, Sea Shells where worth a Kings Ransom...

[livnxxxl]

Gold's price has gone way up since the stock market tanked. Investors got scared and threw their dough into gold, driving the price up.

The people that are advertising to buy it are paying a fraction of the value. They know that in desperate times, there will be more sellers willing to part with the gold they have.

Thank you MegoSteve for your input and for shining some light on this subject.

[livnxxxl]

Here is what history has shown us about printing Paper Money out of "thin air"...like the Federal reserve is doing right NOW:

Probably almost everyone is familiar with the hyperinflationary episode that engulfed Germany after the First World War. That nation’s economy was crippled by monetary problems that resulted in dreadful personal hardships, even though up to that time Germany had achieved one of the highest living standards in the world.
The newly formed German government, named for the city where their constitution was drafted after the Kaiser’s abdication in 1918, kept pumping up the money supply. The process started relatively slowly, but quickly the pace of money creation accelerated.
The Weimar government was paying its bills on credit – just like Zimbabwe is now doing. The Weimar government was issuing currency in exchange for valuable goods and services that it was receiving, and the vendors of those goods and services accepted the newly issued currency in the expectation that they would be able to exchange it for goods and services of like value. However, they soon realized that they were deluding themselves. Prices were rising rapidly, with the consequence that a flight from the currency into commodities and other tangibles began.
There was no discipline on the creation of new currency, with the result that it was being issued to excess. Within a few short years, the German government eventually destroyed the Reichsmark, the currency it had been issuing, making the words Weimar Germany synonymous with hyperinflation, economic collapse, deprivation and personal hardship. All the wealth saved in Reichsmarks was wiped out.

The Federal Reserve is following the footsteps of the central bank in Weimar Germany. It is the same path taken by many central banks that have issued countless fiat currencies based on nothing but government promises. It is the path to the fiat currency graveyard, and the once almighty US dollar – which long ago used to be “as good as gold”, just like the Reichsmark once held that same exalted title – is knocking at the graveyard’s gate.
This insight about the importance of gold and shortcomings of fiat currency is not suprising, nor is it new. Here is what Rep. Howard Buffett, father of Wall Street legend Warren Buffett, had to say on May 4, 1948. “Our finances will never be brought into order until Congress is compelled to do so. Making our money redeemable in gold will create this compulsion.”
Absent that compulsion, the dollar is going the way of the Reichsmark. Don’t count on the US government to do the right thing and make the dollar redeemable into gold. Instead, take those steps necessary to protect yourself and your family to prepare for the dollar’s inflationary collapse. Buy gold. Buy silver. Avoid the US dollar.

Survey says....ding ding ding #1 answer. Thanks so much for your input and knowledge on this subject.