'Civilized People Don't Buy Gold'

[Wormwood09]

And, when my ****** is starving, and I walk up carrying my AK-47, or my SOCOM 16, or my SIG-Sauer P228, guess who is going to be eating tonight? Not you two!

Also what I mean about weapons, is assume there is a civil war. You could pick up M4's off of dead soldiers and you'll probably be kicking yourself for buying an $800-1000 ar15. Obama has signed a deal with Canada that gives them to power to come in though, since our military will most likely be too tied up to deal with any kind of unrest here, so maybe not m4's whatever is Canadas rifle idk.

Ar15's have a completely different reciever dimensions than m4's so I wouldn't get them. Stick with Ak's because besides the disconnect, sear, trigger, and sometimes bolt carrier, the semi-auto is the same as the real version. Get body armor, and a few cheap pistols off of the street. And bury everything but one of them in those green waterproof military canisters you get at army surplus stores. Then read all the military/survival manuals you can find and train.

 

[Rey C.]

When I make an investment, it's not done based on the assumption that there is going to be a civil war. In fact, I can't say that I've ever done ANYTHING based on the assumption that there is going to be a civil war. I keep certain items in a safe location in case of an emergency (weather related or fire). But I'm not one of these paranoid schizos, who stays up at night searching the sky for black helicopters. So right back to what Munger said: "I think civilized people don’t buy gold, they invest in productive businesses."

 

[Wormwood09]

When I make an investment, it's not done based on the assumption that there is going to be a civil war. In fact, I can't say that I've ever done ANYTHING based on the assumption that there is going to be a civil war. I keep certain items in a safe location in case of an emergency (weather related or fire). But I'm not one of these paranoid schizos, who stays up at night searching the sky for black helicopters. So right back to what Munger said: "I think civilized people don’t buy gold, they invest in productive businesses."

What about paranoid schizos like Obama and other politicians making deals allowing canadian troops to come in in the event of an uprising here? The government is taking it just as seriously as the people preparing for it.

 

[Rey C.]

Obama has signed a deal with Canada that gives them to power to come in though, since our military will most likely be too tied up to deal with any kind of unrest here, so maybe not m4's whatever is Canadas rifle idk.

What about paranoid schizos like Obama and other politicians making deals allowing canadian troops to come in in the event of an uprising here? The government is taking it just as seriously as the people preparing for it.

I assume this is what you're talking about: U.S. Northern Command, Canada Command establish new bilateral Civil Assistance Plan - February 14, 2008

It's already been a long week and my memory is a little foggy. But as best I recall, it would have been pretty hard for Barack Obama to sign anything as President of the United States on February 14, 2008... since Barack Obama wasn't President of the United States on February 14, 2008.

You buy gold and bury guns. I'll continue to buy stocks and real estate. But I do wish you the very best of luck in your future endeavors. :hatsoff:

 

[bobjustbob]

What can we really do with gold? 50% is used in jewelry, 40% is in investments. Only 10% is used in industry. Try selling your hand held gold on the open market. You may think that your ounce of gold jewelry or coins is worth $1500. Bring it to a buyer and see what they offer you. Even though it is in a beautiful setting or a pristine coin, expect fractions. Even over the long haul, it is only worth what they offer you. If you are in the trading and investment market, you have to pay a price to buy and sell your gold. If you tell your broker that you want to trade out to physical gold, you have to pay a price for that too.

To me there are 4 different levels of investment:
1. Food. Worse comes to worse that comes to worse. Knock on any door and they will accept food for payment.
2. Cash is king. In your pocket ready at any time. Nobody refuses cash.
3. Land. Pitch a fucking tent on it and this is your home. Your ****** and friends will kick in for the taxes if you want to live there. Otherwise you may be knocking on their door looking for a few nights on their couch.
4. A skill. If you can do something better than someone else, they will pay you.

 

[Will E Worm]

2. Cash is king. In your pocket ready at any time. Nobody refuses cash.

Paper money is fiat, it's not real. Real money is gold and silver or at least exchangeable for one of the two.

 

[bobjustbob]

Paper money is fiat, it's not real. Real money is gold and silver or at least exchangeable for one of the two.

Cash is liquid and an instant buy. It's not hard to find discounts for paying cash. Inflation is the only thing that can hold down it's value. It costs about 5% to buy gold and 5% to trade it back for cash.

 

[Mabvlox]

http://www.financialsense.com/contributors/mark-obyrne/david-rosenberg-gold-3000-dollars-per-ounce

 

[Rey C.]

Cash is liquid and an instant buy. It's not hard to find discounts for paying cash. Inflation is the only thing that can hold down it's value. It costs about 5% to buy gold and 5% to trade it back for cash.

Excellent point, Bob. I'm not sure that people consider all of the the transaction costs of dealing with gold. With gold, in addition to the buy/sell commission, there is also a dealer spread (bid/ask) that is not present when dealing with a domestic currency. Only if I decide to trade my dollars for Euros (or some other foreign currency) would I encounter similar costs. But with gold, if I buy it in the morning and sell it in the afternoon, assuming the price remains unchanged from open to close, I'm going to suffer a net loss that day. Even if I take the (physical) gold that I bought in the morning and trade it for something in the afternoon, I will have paid a dealer/broker the higher ask price, plus a commission, and when I trade it for goods or services, I will likely only get the lower bid price as my goods are rung up at the register. Why? Because the store owner is not going to give me more for my gold than he would be able to get when he decides to sell it (that same day).

These unlikely, and rather unrealistic, dooms day scenarios aside, going back to what Munger said: "I think civilized people don’t buy gold, they invest in productive businesses." Savvy traders may make money trading in precious metals. But investors are better off (over the longer term) sticking with equity in legitimate business entities.

 

[Will E Worm]

:sing: Silver and Gold...

 

[Rey C.]

A lesson on the "intrinsic value" of gold:

"Gold... it's real gold!"