SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Welcome to Slider's Dugout
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: maceng2 who wrote (7489)1/1/2008 10:38:30 AM
From: polarisnh  Read Replies (1) of 50182
 
That link that you responded to by Denninger's thread had some pretty naive assumptions within it. First of all, if the US Dollar drops by 50% the price of gold would simply double according to the article. I believe that it might increase by a factor of 3 or 4 times. The assumption that the price of gold is simply based upon the perceived value of the US Dollar is also naive. Gold is real money and has been so for 5000 years. The US Dollar is simply someone else's debt that is subject to repayment.

'Let's say that the dollar is debased by 50% from here and Gold doubles in price (in dollars.) You make 100%, right? Wrong - you are subject to a 28% collectables tax on the appreciation, so you in fact lose compared to inflation. Congratulations - you lost real purchasing power!'

Let's see..... I buy gold and it doubles and therefore am subject to a 28% tax. O.K., while I am not happy about paying taxes at least I kept 72% of my profit. Let's consider the alternative. I keep my assets in US Dollars and they debase it 50%. I am now sitting on assets that are now 'worth' half of what they were. And I have no profit. Hello! I will take my chances on making a profit on a tangible asset and not something that can be created out of thin air by a private organization like the Federal Reserve.

As for the suggestion that you should own LEAPs and CALLs instead of gold. I think that is a farce as well for the majority of people. While l believe that there is nothing wrong with using such investment vehicles as a very small portion of your portfolio, CALLs and LEAPs should not be the core of ones holding unless you truly are a professional. And we have seen over the past year as the CDOs have blown up that many of these so called professionals are nothing more than con men or shills.

I believe that all portfolios should consist of at least 10 to 15% gold, silver, platinum coins and another another 10 to 20 % of quality hard asset producer stocks. The remainder in a diversified worldwide portfolio. Is this fool proof? No, but I will sleep better than most at night.

Cheers,

Steve
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News