What happened to the "Gold and the Dollar" thread?

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Irvinecommuter said:
jayl23 said:
Irvinecommuter said:
jayl23 said:
It depends on what kind of economic disaster you're talking about.  Lots of people fear the high/hyperinflation scenario, where the paper currency is basically worthless (see Zimbabwe, Weimar Republic, and numerous other countries where this has happened).  History has a message for us: No fiat currency has lasted forever. Eventually, they all fail.  The US dollar has lost 97% of its purchasing power over the last century.  Sure, it might not happen in our lifetime, but how confident are you of that?
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I agree but if the US currency becomes worthless, you will have a lot more to worry about than whether you have gold, especially if you don't t actually own the gold...you just own a share of the gold sitting somewhere else.  Good luck getting that exchanged during an economic meltdown to level where the US dollar is no longer good.
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Exactly, which is why lots of ppl like to own the physical bullion, instead of paper gold, which has greater counterparty risk.

"Own physical gold and silver, and protect it with lead"
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I'll just take the lead.  I mean if Mad Max taught me anything...it's that I should start hoarding gasoline.
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Don't forget about the water.  So will Irvine become Bartertown with Donny B running it?
 
Baby Irvine said:
For the record IHO. I do know who deleted the thread.

Gold went from $35 - $850 from 1971 - 1980. Gold went from $285 - $1942 from 2001 - 2011. I mentioned before if gold breaks $1520 support it is game over. I currently have 70% of my assets in USD collecting a tiny 1%, preparing for a CD laddering strategy, short bond strategy, and short term bond strategy. 23.3% of assets are in real estate and about 6% shorting the euro.

One is foolish to listen to anyone on this thread for investment advice, you need to know how to think for yourself and not listen to anyone. It makes me sad to see Peter Schiff going on TV telling everyone who is holding gold not to sell as it will head for $5000 and higher. I thought that the peak was at 2010, but it appears 2011 is the peak. There is a new emerging trend forming and you have invest in it when no one is talking about it. Sometimes, my best strategy is do absolutely nothing like a chameleon patiently waiting for the perfect dinner... then BAM... in my mouth.

To have all your money in your Irvine home may be a good way to preserve your wealth, but one will not become wealthy and financially independent this way. You need to build up your passive income to become wealthy. Owning 8 -10 free and clear SFR Rentals here in Johns Creek will generate will a passive income of $200,000 / year without having to work. In today's interest rates environment you will need $20 million dollars to generate this passive income with 1% APY. I choose real estate as my vehicle to become independently wealthy, not stocks. 
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Can you please define what "independently wealthy" means to you (I'm sure it has a different meaning to people)?
 
Here's a question for you all.

Your rich Uncle Vernon just passed away.  You have one other sibling.  Due to Uncle Vernon being the guy he is, his will states that his 30 million dollar estate will be split into $15mil in gold bars and $15mil in Pesos.  You have to decide among yourselves who will pick which one.  You cannot share; if you do later, behind his  back, all of the inheritance will be anulled (and the Dementors will kill you both).  Also, you cannot touch the inheritance for 15 years, before you can cash it in to buy in Shady Canyon.  Which would you pick?

I wouldn't hesitate and would pick the gold bars.  :P
 
irvinehusky said:
Here's a question for you all.

Your rich Uncle Vernon just passed away.  You have one other sibling.  Due to Uncle Vernon being the guy he is, his will states that his 30 million dollar estate will be split into $15mil in gold bars and $15mil in Pesos.  You have to decide among yourselves who will pick which one.  You cannot share; if you do later, behind his  back, all of the inheritance will be anulled (and the Dementors will kill you both).  Also, you cannot touch the inheritance for 15 years, before you can cash it in to buy in Shady Canyon.  Which would you pick?

I wouldn't hesitate and would pick the gold bars.  :P
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Why would you pick peso? 
 
The peso is more stable than gold and will do better over the long run.  The bear market in gold is in its infancy and the previous bear market lasted nearly 20 years.  I think gold will lose another 60% of its value against the dollar, whereas the peso has been strengthening and may continue to do so.  Barring major upheaval in Mexico, I think the peso is less likely to lose 60% of its value vs. the dollar over the next 15 years.
 
Liar Loan said:
The peso is more stable than gold and will do better over the long run.  The bear market in gold is in its infancy and the previous bear market lasted nearly 20 years.  I think gold will lose another 60% of its value against the dollar, whereas the peso has been strengthening and may continue to do so.  Barring major upheaval in Mexico, I think the peso is less likely to lose 60% of its value vs. the dollar over the next 15 years.
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Agreed but major upheaval is possible in Mexico...again no person would put long term money in pesos.
 
Irvinecommuter said:
Liar Loan said:
The peso is more stable than gold and will do better over the long run.  The bear market in gold is in its infancy and the previous bear market lasted nearly 20 years.  I think gold will lose another 60% of its value against the dollar, whereas the peso has been strengthening and may continue to do so.  Barring major upheaval in Mexico, I think the peso is less likely to lose 60% of its value vs. the dollar over the next 15 years.
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Agreed but major upheaval is possible in Mexico...again no person would put long term money in pesos.
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I would choose the peso and take my chances.  It could actually appreciate against the dollar, whereas gold is a guaranteed loss in my view.

The peso has lost about 30% of its value over the past 15 years.
 
This guy would take the gold, and wear it proudly!  :D

gold%20shirt.jpg
 
Irvinecommuter said:
Liar Loan said:
The peso is more stable than gold and will do better over the long run.  The bear market in gold is in its infancy and the previous bear market lasted nearly 20 years.  I think gold will lose another 60% of its value against the dollar, whereas the peso has been strengthening and may continue to do so.  Barring major upheaval in Mexico, I think the peso is less likely to lose 60% of its value vs. the dollar over the next 15 years.
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Agreed but major upheaval is possible in Mexico...again no person would put long term money in pesos.
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there are plenty of mexican bank accounts holding pesos-  always kid that im taking all of our USD and putting in pesos cause the US is a mess.
 
Sorry, bad grammar.  I would pick the GOLD, not the PESO.

Irvinecommuter said:
irvinehusky said:
Here's a question for you all.

Your rich Uncle Vernon just passed away.  You have one other sibling.  Due to Uncle Vernon being the guy he is, his will states that his 30 million dollar estate will be split into $15mil in gold bars and $15mil in Pesos.  You have to decide among yourselves who will pick which one.  You cannot share; if you do later, behind his  back, all of the inheritance will be anulled (and the Dementors will kill you both).  Also, you cannot touch the inheritance for 15 years, before you can cash it in to buy in Shady Canyon.  Which would you pick?

I wouldn't hesitate and would pick the gold bars.  :P
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Why would you pick peso?
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Trojan man...

I gave you my definition of "independently wealthy" several times already on TI .... Why you asking me again?

Panda's rule #1 A man should have enough money to never have to work again, if that's his choice.

Panda's rule #2 A man should have investments, a pension, or a trust fund that can provide them with twice the level of their country's median household income over a lifetime.

According to the U.S. Census Bureau, the median household income in 2009 was $50,221. Based on Panda's definition of wealth, If an American investment can annually generate twice that amount ($100,442 or more) without working, that that person is independently wealthy.

What's your definition Trojanman? Living in a million dollar Irvine home and driving a brand new porsche?

USCTrojanCPA said:
Baby Irvine said:
For the record IHO. I do know who deleted the thread.

Gold went from $35 - $850 from 1971 - 1980. Gold went from $285 - $1942 from 2001 - 2011. I mentioned before if gold breaks $1520 support it is game over. I currently have 70% of my assets in USD collecting a tiny 1%, preparing for a CD laddering strategy, short bond strategy, and short term bond strategy. 23.3% of assets are in real estate and about 6% shorting the euro.

One is foolish to listen to anyone on this thread for investment advice, you need to know how to think for yourself and not listen to anyone. It makes me sad to see Peter Schiff going on TV telling everyone who is holding gold not to sell as it will head for $5000 and higher. I thought that the peak was at 2010, but it appears 2011 is the peak. There is a new emerging trend forming and you have invest in it when no one is talking about it. Sometimes, my best strategy is do absolutely nothing like a chameleon patiently waiting for the perfect dinner... then BAM... in my mouth.

To have all your money in your Irvine home may be a good way to preserve your wealth, but one will not become wealthy and financially independent this way. You need to build up your passive income to become wealthy. Owning 8 -10 free and clear SFR Rentals here in Johns Creek will generate will a passive income of $200,000 / year without having to work. In today's interest rates environment you will need $20 million dollars to generate this passive income with 1% APY. I choose real estate as my vehicle to become independently wealthy, not stocks. 
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Can you please define what "independently wealthy" means to you (I'm sure it has a different meaning to people)?
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irvinehusky said:
BTW she just became a little poor in last two days..
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I doubt if she would know what you are talking about, and if she did, she would disagree.  She does not measure her wealth in dollars, and probably only somewhat measures it in Rupees.  She measures her wealth in grams of gold, and she has as much today as she did two days ago.  To her, and most who own physical gold, gold is neither an investment nor a speculation.  It is wealth preservation.
 
Awgee,
You really think that this is major correction in gold wiping out the weak hands before heading much higher to $5000 - $10,000 an ounce?... I mean.. my momma was asking me how she can buy more gold for the past 6 months. I asked her why... she told me all her church friends were telling to buy gold because it went up 600% since 2001... I'm like mom.. mom.... you don't want to buy something that has already gone up 600%.. you want to buy something that will go up 600% in the future.  >:D

Last gold rally lasted 9 years from 1971 - 1980. Why do you think it is different this time that this rally will go on for 20 years? I've been studying dollar chart from 1970 - 2013... and I think we may in for a dollar rally as everyone hates the dollar and loves gold.



awgeecdcrez said:
irvinehusky said:
BTW she just became a little poor in last two days..
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I doubt if she would know what you are talking about, and if she did, she would disagree.  She does not measure her wealth in dollars, and probably only somewhat measures it in Rupees.  She measures her wealth in grams of gold, and she has as much today as she did two days ago.  To her, and most who own physical gold, gold is neither an investment nor a speculation.  It is wealth preservation.
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That was CZ's quote, not mine. :D I agree 100% with what you said.

In the end, it's not how much the price of gold is at the time; it's what that same amount of gold will buy you.  My understanding is that gold has done well in this regards dating back to when the cavemen were around.

I respect others' opinion to the contrary as I don't know which will do better while we (more importanly, while I'm alive) are still alive.  I don't have a PhD in Economics from Harvard, you know.  Oh wait, those guys can't predict the market any better than I can.  They just change their minds more often and act like they know something.  :P

Gold or our dollar, propped up by our Government?  I think I'd rather bet on gold.  If I'm wrong, you'll see me at the Costco parking lot begging for handouts.  :P

awgeecdcrez said:
irvinehusky said:
BTW she just became a little poor in last two days..
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I doubt if she would know what you are talking about, and if she did, she would disagree.  She does not measure her wealth in dollars, and probably only somewhat measures it in Rupees.  She measures her wealth in grams of gold, and she has as much today as she did two days ago.  To her, and most who own physical gold, gold is neither an investment nor a speculation.  It is wealth preservation.
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