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Thread: Betting on the Yellow Brick Road, or, Counting Chicken(Taco)s Before They Hatch

  1. #101
    Fuhlauto Balogna Ridenfool's Avatar
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    You do have a singletrack mind AB. I'll give you that. No matter how many times somebody says they own gold for diversification and maintenance of redeemable purchasing power when held over time, you still only talk about investment in the stock market's wares with the intention of profit. Which is one of several valid forms of diversification as well.

    You really do struggle with wrapping your head around the idea of doing both. This is the very meaning of diversification. Not having all the eggs in one basket. It is clear that you probably will continue to respond with the well-worn sermon about the benefits of your preferred investments. That's fine, but has little to do with the topic of holding gold over time to preserve a portion of one's wealth, not to make a profit necessarily, just to avoid loss of purchasing power to a consistently devaluing dollar.

    Compared to holding dollars in a bank or a safe place at home, gold has a long track record of success because it has very little risk and thousands of years of demonstrating its ability to preserve purchasing power.

    Diversification is about having multiple places to store wealth. Having some cash in the bank, some cash at home, some placed as bets on the market, and some in gold (or other similar storage medium) and is part of most recommend plans for preserving one's wealth while being prepared for rough waters, no matter what happens in the world. When this thread started, gold was a very good place to have stored wealth. It still is, and will continue to be to greater or lesser degrees. It won't be expected to be profitable, like market instruments can be, but it will be significantly better than holding dollars over time.

    Is there anything about the relationship of gold's value to the dollar's value over time, or, gold's use as a safe method of diversification to preserve wealth in certain scenarios, the like of which we have experienced twice in the past decade, which you specifically disagree with?
    Last edited by Ridenfool; 10-01-2017 at 06:10 PM.
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  2. #102
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    Quote Originally Posted by Ridenfool View Post
    You do have a singletrack mind AB. I'll give you that. No matter how many times somebody says they own gold for diversification and maintenance of redeemable purchasing power when held over time, you still only talk about investment in the stock market's wares with the intention of profit. Which is one of several valid forms of diversification as well.
    Exactly.
    I'm beginning to think that maybe his dad threw a krugerrand and hit him in the head when he was a child. He has hated gold ever since.

  3. #103
    h8ter of all things fun. The Toninator's Avatar
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    Question - with bitcoin and bitcoin options putting pressure on gold and the palladium trading well above platinum, is Palladium going trade above Gold sometime in the very near future?
    Ya'll don't know what it's like
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  4. #104
    Fuhlauto Balogna Ridenfool's Avatar
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    Quote Originally Posted by The Toninator View Post
    Question - with bitcoin and bitcoin options putting pressure on gold and the palladium trading well above platinum, is Palladium going trade above Gold sometime in the very near future?
    Who knows?

    That is what a free market is supposed to be about. Though there is plenty of evidence to support how gold and silver prices are kept in check by those who would be most harmed by the market actually being the thing that drives their values. There have been indictments, trials, fines, and other investigations into the banks and their minions who exercise control over the metals their debt-based money is measured against.

    Bitcoin has the potential to throw a monkey wrench in the works. So much so that banks are now creating Bitcoin-like mechanisms to offer their customers, except designed to allow the banks to have influence over them in a way that Bitcoin doesn't. Personally, I'd love to see fiat money have to compete in a free market where people could log in and set which currency and in what amounts they would like to keep their accounts. Then the central banks would be forced to be competitive against one another, rather than co-conspirators in a rigged game.

    There are a lot of players and a lot of variables that affect things. It doesn't really matter as much as the prices at least representing realistically the true measure of the market, rather than being influenced by those odd days when a year's mine supply of silver is mysteriously sold in a few minutes, or when something similar happens to gold prices. With things like this going on to hide the effects of fiat money on wealth it wouldn't surprise me if metals with a stronger presence in manufacturing are able to behave in response to the market demands when the "gold standard" has clearly and obviously been massaged to keep this point of reference held to a specific range.

    In the end some things will always have certain qualities. Fiat money has and likely will always lose value when held over time. Metals, land, art and such tend to do a better job of holding value in the same scenario, when compared to fiat money. Bitcoin is still the new kid on the block and only time will tell what qualities it will consistently display. It has promise, at least it is difficult to manipulate, though it is also difficult for the layman to understand and trust as a store of wealth.
    Last edited by Ridenfool; 12-15-2017 at 01:14 PM.
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  5. #105
    h8ter of all things fun. The Toninator's Avatar
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    Quote Originally Posted by The Toninator View Post
    Question - with bitcoin and bitcoin options putting pressure on gold and the palladium trading well above platinum, is Palladium going trade above Gold sometime in the very near future?
    palladium is making a run at gold.
    Ya'll don't know what it's like
    being male, middle class and white.

  6. #106
    h8ter of all things fun. The Toninator's Avatar
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    1074 v 1180, go baby!!!
    Ya'll don't know what it's like
    being male, middle class and white.

  7. #107
    Fuhlauto Balogna Ridenfool's Avatar
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    The market is a living thing.
    "When we remember we are all mad, the mysteries of life disappear and life stands explained."
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  8. #108
    h8ter of all things fun. The Toninator's Avatar
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    palladium is $66 bucks away from gold!!! 1180/1246
    Ya'll don't know what it's like
    being male, middle class and white.

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