Why gold remains compelling
Unless you think Europe is out of the woods, treat the metal as a currency and buy it into any weakness.
Once again I find myself on the defensive about gold, as I have been many times in the past eight years of liking the precious metal.
This time the thinking is that we are in an era of permanently low growth, aided by the potential of a deflationary collapse in Europe.
Sure, that's possible. The difficulty I have in getting negative on that news is that I don't regard gold as a haven that goes up only in an inflationary environment. I regard gold as an alternative to the euro, and I see nothing that tells me the euro is suddenly in good standing, other than an intra-morning reversal in that ultimately unworkable currency.
I want you to think, for a moment, what you would do if you were a wealthy Spanish person. You are desperate to preserve your worth. You can't do it by buying euros, that's for certain. Who really wants the U.S. dollar, which gives you no real return, given that you would be buying short-term bills or notes if you were to make that purchase?
I think people forget the incredible affinity for gold among the Spanish. If you go back to the Spanish Civil War, the Republicans, desperate for aid from the Soviet Union, had to part with their prized possession, their huge gold holdings. Some observers at the time actually felt the Republicans might be willing to go down to defeat rather than surrender their gold.
Believe me, gold is the refuge currency they will choose. Italy is no different, and remember: While these are not rich countries, they have a lot of rich people.
The Chinese have been buying gold. The Indians are in an internal tussle about taxing gold purchases. But believe me, unless you think Europe is out of the woods, you want to buy gold -- not the stocks but the metal and its ETFs -- into any weakness. Gold is a currency, not just a metal, and when you put it like that, you know the currency is resting. And nothing more.
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust.
It is estimated that 100 times the amount of gold and silver that actually exist is traded each day in the paper markets. This is how their prices can be manipulated lower. It's a game that's worked for 30 years. Unfortunately, China and India see how the game works as well and they're accumulating the real thing. Soon...game over. Look for gold to exceed $5,000 and silver $300.
Gold may fluctuate in price but as long as the US continues to devalue its fiat currency and owe $15 trillion, gold will remain a good investment.
remember that other than jewelry and some industrial applications that gold has no real worth..........example:in tough times you can't buy my water for any amount of gold.........even if i wanted to sell you my water how would we make change?
Huh... Gold is traded as a currency (XAU) just like fiat (USD), but yet has no real worth? Even though I fear where YOUR water came from, I would be more than glad to trade you MY water ounce for ounce for your gold. No need to make change, gold is worthless anyway - not. If anyone thinks gold is worthless, try taking some away from your wife; suddenly it is worth your life.
I don't know where you live, but the best way to buy small amounts of gold (sometimes large) at cheap prices is to go to yard sales and flea markets. It is amazing how much gold jewelry you can pick up for almost nothing.
You need to educate yourself on how to identify real and fake gold, and all of the different markings, i.e. .417, .585, etc.
You will also need to buy a gold testing kit for acid testing, a good loup, and a scale that weighs in grams or pennyweight. You can pick these items up for well under a hundred bucks.
The upside to this is you often find really beautiful rings, necklaces, and earrings that you can wear until you need to sell. My wife loves my dealing in gold and silver.
I also sell my scrap to a smelter for 95% of the current spot price of gold, but when the pieces are nice I try to sell to investors or collectors at full spot price. If you buy from a commercial site such as Kitco.com you will pay well over the current spot price.
I hope this has helped you.
How and where can I buy Gold? I mean low amounts, I am an average US citizen.The most reliable way (IMO) is the US Mint. You can order Gold Eagles in several sizes.
You think am wrong! Then, bet your deal. Have about 5 acres you can plan on...plant on!
So gold is really just a speculative buy, and always will be. That is just gambling. No thank you.
And the Market isn't? Sheesh...
Stocks can and do go to ZERO; Edsel & Studebaker ring a bell? How about my 401K - Wish I'd have bought AU instead or feeding some fat cat's yacht habit. Gold never has been worth zero, and a $50 Eagle will always be worth $50 - it says so right on the coin, er money.
Good job. I purchased 10,000 shares of aapl in 1994 for $8 a share. Still have them all.
remember that other than jewelry and some industrial applications that gold has no real worth
..........example:in tough times you can't buy my water for any amount of gold
.........even if i wanted to sell you my water how would we make change?
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