Comments on: When to Sell Gold and Buy the Dow Jones http://www.dailyreckoning.com.au/sell-gold/2007/10/31/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Paul http://www.dailyreckoning.com.au/sell-gold/2007/10/31/comment-page-1/#comment-11193 Paul Thu, 06 Mar 2008 14:20:29 +0000 http://www.dailyreckoning.com.au/sell-gold/2007/10/31/#comment-11193 having someone else hold a valuable item for you when alls you have is a piece of paper is retarded beyond belief. even currency becomes worthless when like in russia a barrow load of rubles would buy a loaf of bread. held gold is only useful when the economy rights itself after a long period of the poseidon adventure. if you want to know whats valuable in a time or depression read "the road" by cormac mccarthy, and of course have a weapon at your disposal. having someone else hold a valuable item for you when alls you have is a piece of paper is retarded beyond belief. even currency becomes worthless when like in russia a barrow load of rubles would buy a loaf of bread. held gold is only useful when the economy rights itself after a long period of the poseidon adventure. if you want to know whats valuable in a time or depression read "the road" by cormac mccarthy, and of course have a weapon at your disposal.

]]> By: Ben http://www.dailyreckoning.com.au/sell-gold/2007/10/31/comment-page-1/#comment-11163 Ben Thu, 06 Mar 2008 04:03:37 +0000 http://www.dailyreckoning.com.au/sell-gold/2007/10/31/#comment-11163 Hey SlowLearner They are talking about investing in physical gold, but without having to hold it. Companies exist who enable you to buy gold bullion and they will store it - I believe you receive a cert of ownereship or similar (like shares), so that you can then sell it back to the market when the price has changed (hopefully in your favour). Back in September if you invested around US$700 you would have owned an ounce of Gold. Today that ounce would be worth approx US$990. Gold is seen as more stable long term than phyical money because governments cannot suddenly produce more of it to control its value. Hey SlowLearner

They are talking about investing in physical gold, but without having to hold it. Companies exist who enable you to buy gold bullion and they will store it - I believe you receive a cert of ownereship or similar (like shares), so that you can then sell it back to the market when the price has changed (hopefully in your favour).

Back in September if you invested around US$700 you would have owned an ounce of Gold. Today that ounce would be worth approx US$990.

Gold is seen as more stable long term than phyical money because governments cannot suddenly produce more of it to control its value.

]]> By: SlowLearner from Briz http://www.dailyreckoning.com.au/sell-gold/2007/10/31/comment-page-1/#comment-11151 SlowLearner from Briz Thu, 06 Mar 2008 01:02:46 +0000 http://www.dailyreckoning.com.au/sell-gold/2007/10/31/#comment-11151 Hi All, Pardon my ignorance here, but are we talking about buying into gold stocks or physically purchasing bars of gold (to stash under the bed, or wherever?) Hi All,

Pardon my ignorance here, but are we talking about buying into gold stocks or physically purchasing bars of gold (to stash under the bed, or wherever?)

]]> By: John http://www.dailyreckoning.com.au/sell-gold/2007/10/31/comment-page-1/#comment-11140 John Wed, 05 Mar 2008 22:41:50 +0000 http://www.dailyreckoning.com.au/sell-gold/2007/10/31/#comment-11140 Hugh, People desire gold for the same reason they desire any currency -- because they can trade it for goods and services later. The only difference with gold is that they can't be robbed by a bunch of politicians and bankers that are constantly printing more of it to keep themselves in power. Hugh,

People desire gold for the same reason they desire any currency -- because they can trade it for goods and services later. The only difference with gold is that they can't be robbed by a bunch of politicians and bankers that are constantly printing more of it to keep themselves in power.

]]> By: fazsha http://www.dailyreckoning.com.au/sell-gold/2007/10/31/comment-page-1/#comment-11122 fazsha Wed, 05 Mar 2008 16:04:30 +0000 http://www.dailyreckoning.com.au/sell-gold/2007/10/31/#comment-11122 I always like it when a guy like Hugh Burgett shows up and reassures me that not only is most of the public not IN gold, they don't UNDERSTAND gold. He doesn't understand how a company can make money and yet effectively drain all the profits out to the top executives though option grants combined with stock buybacks. Dell has been a profitable company the last 5 years but is selling 20% lower than 5 years ago even though they never paid a dividend. It wasn't because it was overvalued 5 years ago (remember, that was 2003, near the bottom of the plunge), it's because they spent all the cash on the executives, who own 10% of the outstanding shares. There's a leak in the bottom of the Dell boat. I always like it when a guy like Hugh Burgett shows up and reassures me that not only is most of the public not IN gold, they don't UNDERSTAND gold. He doesn't understand how a company can make money and yet effectively drain all the profits out to the top executives though option grants combined with stock buybacks. Dell has been a profitable company the last 5 years but is selling 20% lower than 5 years ago even though they never paid a dividend. It wasn't because it was overvalued 5 years ago (remember, that was 2003, near the bottom of the plunge), it's because they spent all the cash on the executives, who own 10% of the outstanding shares. There's a leak in the bottom of the Dell boat.

]]> By: Pete http://www.dailyreckoning.com.au/sell-gold/2007/10/31/comment-page-1/#comment-4289 Pete Thu, 01 Nov 2007 10:45:42 +0000 http://www.dailyreckoning.com.au/sell-gold/2007/10/31/#comment-4289 Hugh I can understand and partly agree with the first part of your rant, but as for 'life without money' ... screw that!! Hugh I can understand and partly agree with the first part of your rant, but as for 'life without money' ... screw that!!

]]> By: Hugh Burgett http://www.dailyreckoning.com.au/sell-gold/2007/10/31/comment-page-1/#comment-4235 Hugh Burgett Wed, 31 Oct 2007 08:44:34 +0000 http://www.dailyreckoning.com.au/sell-gold/2007/10/31/#comment-4235 Why do people want to own something that gives them nothing, stocks may be over valued, over priced , but they do give a dividend usually. Even when stock prices turn to dust if the world turns there may be some income. Gold on the other hand has value if somebody else wants it, when times get bad would you prefer to trade something of practical value, food or fuel, can you swipe a gold bullion in a atm, when you need to access this asset how will you do it travel to Perth, Switzland to chisel some off to hand to a trader for what, some thing else off "value" determined by who? I think much of the gold is owned by the credit crazed people you constantly write about and very soon they will give it the flick so as to pay back the debt that suddenly is choking them, at this stage you wish that at $800+/- was enough for you and had got the dollars because regardless that is what the world will be using, or would you suggest some other currency, maybe the au$, its good now but like gold it goes up and down depends who wants it. How many people in this world survive on less then $50 week, $5 a day, proves one thing you dont need much to live, maybe not in the way you have been but they eat, sleep and procreate and isn't that the best part of life sorry im over the gold thing. Why do people want to own something that gives them nothing, stocks may be over valued, over priced , but they do give a dividend usually. Even when stock prices turn to dust if the world turns there may be some income. Gold on the other hand has value if somebody else wants it, when times get bad would you prefer to trade something of practical value, food or fuel, can you swipe a gold bullion in a atm, when you need to access this asset how will you do it travel to Perth, Switzland to chisel some off to hand to a trader for what, some thing else off "value" determined by who?
I think much of the gold is owned by the credit crazed people you constantly write about and very soon they will give it the flick so as to pay back the debt that suddenly is choking them, at this stage you wish that at $800+/- was enough for you and had got the dollars because regardless that is what the world will be using, or would you suggest some other currency, maybe the au$, its good now but like gold it goes up and down depends who wants it. How many people in this world survive on less then $50 week, $5 a day, proves one thing you dont need much to live, maybe not in the way you have been but they eat, sleep and procreate and isn't that the best part of life
sorry im over the gold thing.

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