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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (40933)	1/4/2011 6:05:48 PM
From: Spekulatius	3 Recommendations Read Replies (1) \| Respond to of 78451

My posts are always opinions. If the amount of money were equal to the value of precious metals, then that would return us to the gold standard. I don't think the argument can be made that the wealth generated by the world economy is proportional to inventory value of a few elements (Au, AG) horded in safes. This was what the gold standard was about. Now I am agreeing with you that we are on the wrong track with QE's and such, but my argument is that there is not fundamental reason for the rapid appreciation of precious metals. In the 70's we had high single digit or even double digit inflation and now we are a far cry from that. I remember the 1980's gold boom I played it as a 14 year old with 2 British Sovereigns. It was my first speculation. Back then, you had to buy actual coins (which you could do at the bank for an about 8% commission in Germany) now you can just buy GLD with a mouseclick. This makes it easier to get in and easier to get out.

To: Madharry who wrote (40933)	1/4/2011 6:47:46 PM
From: geoffrey Wren	Read Replies (1) \| Respond to of 78451

There is an old adage in the financial world that "Bad money drives out the good." Dates from when Elizabeth decided to debase her currency. fff.org No silver coin will circulate unless the value of the coin is considerably higher than the value of the silver in it. I doubt they will make $50 coins. One can still invest in bags of 90% silver coins from 1964 and before. Not a bad way to invest. You pretty much only pay for the silver content of the coins.