Investing in physical gold – discuss

SILVERHARP2 · Post by **SILVERHARP2** » 24 May 2006, 13:38

Only buy gold that was mined in the 19th century and you can sleep easy.

Peter · Post by **Peter** » 27 May 2006, 12:10

I've bought and sold gold a couple of times using an online company which stores it in a vault. I don't anticipate a total collapse of civilisation as oil runs out. Painful adaption but we managed without oil for most of history and we will manage again.

Therefore, I reckon that gold stored via a company is safer than that stored at home - it's more fluid - can be accessed anywhere with internet connection - (if Somalia can support internet cafes, then I'm sure a post-peak UK can as well) and can't be taken by a common thief.

People who store physical gold may have problems convincing others it is authentic and unsullied when they need to use it.

As for the ethics of it - It's no more or less ethical than other ways of storing wealth. Unlike a bank account, there's no usury involved. I know exactly where my wealth is, and what it is doing. I know that nobody else is using it to make investments I know nothing about. It is sat in a vault, doing nothing except hopefully becoming more desireable.

Fortunately, peak oil will make gold mining less viable - so gold in circulation will become more valuable.

MacG · Post by **MacG** » 27 May 2006, 13:16

Anyone "investing" in gold should ask themselves if they find inner peace knowing they are supporting activities like these:

http://www.globalresearch.ca/index.php? ... cleId=2483

Peter · Post by **Peter** » 27 May 2006, 15:50

MacG - like much economic activity in industrial society, gold mining is very damaging. If I did 'nothing' with my money and left it sitting in a bank account, the bank would use my money to invest in all sorts of damaging activities and give me a derisory rate of interest to thank me for this. So there is no moral highground to be had here from doing 'nothing' with your money.

Even if you keep your sterling in cash under the mattress, it gains or loses value depending on fossil-fuel powered economic activity.

Like most people, I am not very wealthy and I am very aware that our western standard of living could crumble away quite easily. I don't have enough real resources to provide a cushion in an economic crisis. When it happens, I will hopefully be in a much better position possessing some gold than what will be worthless paper money.

If I could find a guilt-free way of protecting what little wealth I have then I would do it - but gold appears to be the most reliable option.

SILVERHARP2 · Post by **SILVERHARP2** » 28 May 2006, 10:41

In defense of gold, if we had gold backed money, we would not be facing peak oil now, the world economy would have grown at a slower rate and globalisation based on cheap credit would not have occured to he same extent. Think of all the fx speculation that goes on around the world beacuse money is not backed by gold. Using gold as money an economy could not consume more then it produces for long.

MacG · Post by **MacG** » 28 May 2006, 11:57

SILVERHARP2 wrote:In defense of gold, if we had gold backed money, we would not be facing peak oil now, the world economy would have grown at a slower rate and globalisation based on cheap credit would not have occured to he same extent. Think of all the fx speculation that goes on around the world beacuse money is not backed by gold. Using gold as money an economy could not consume more then it produces for long.

That is because of gov monopolies on money. Private Enterprise Money as suggested by Edwin Riegel would solve the problem, without destroying glaciers in the Andes and polluting the streams with sulfuric acid and cyanide.

SILVERHARP2 · Post by **SILVERHARP2** » 29 May 2006, 13:32

MacG wrote: That is because of gov monopolies on money. Private Enterprise Money as suggested by Edwin Riegel would solve the problem, without destroying glaciers in the Andes and polluting the streams with sulfuric acid and cyanide.

I don't think gold is the best model for a financial system, and it wouldn't take a genius to come up with algorithm to mimic gold if the will was there, however just being a realist, either the Fiat system will continue for the next 50 years or there maybe some type of a return to a gold standard, I doubt if this will happen though
I'm not familiar with the example you mentioned but I am familiar with the conept of time dollars, community currencies etc. however TPTB will stamp down on any money that can't be taxed easily or sidetracks the banking system.

MacG · Post by **MacG** » 29 May 2006, 15:48

SILVERHARP2 wrote: /snip/ however TPTB will stamp down on any money that can't be taxed easily or sidetracks the banking system.

I absolutely agree on that one. Alternative systems wont have a chance until after a collapse. I think it is very darwinistic all of it - the current system was simply the most effective in exploiting fossil energy and generate some kind of "growth", but when conditions change, other systems will become more fit for purpouse.

Vortex · Post by **Vortex** » 30 May 2006, 09:37

A gold based economy doesn't work well in a growth based economy.

However if we end up with zero growth perhaps we can rethink that!

LastDrop · Post by **LastDrop** » 02 Jun 2006, 10:29

Hi, I've been reading through a lot of comments on this thread and decided to see how easy it is to buy gold.

Godleigh IGH (http://www.godleyigh.com/) sell 50 gram bars at ~?461.

50 grams = 1.76oz which would mean they are selling at ~?262 per ounce.

The gold sterling price as I type is ~?338 per ounce. This would mean Godleigh would be selling at considerably lower than market value.

Have I messed up my maths here or is there something else I am missing? (hidden charges? the quality of the gold? Needing to order ?100K of the stuff?). All help appreciated.

Vortex · Post by **Vortex** » 02 Jun 2006, 11:23

1 troy ounce = 31.1034768 grams

50 gms = 1.6 oz

So they are charging ?286.77 per oz

A bit higher .. but still VERY confusing!

SILVERHARP2 · Post by **SILVERHARP2** » 02 Jun 2006, 12:58

LastDrop wrote: Needing to order ?100K of the stuff). All help appreciated.

Try www.gold.ie , they deal with the UK and they could offer a mixture of coins, bars and Perth Mint , I believe they even can arrange storage in Switzerland

newmac · Post by **newmac** » 26 Jun 2006, 15:16

Gold seems to be holding steady now. Any thoughts on whether it will go down anymore before get in?

Pippa · Post by **Pippa** » 27 Jun 2006, 08:39

I have been reading recently that the Russians and the Chinese are coming! According to the daily reckoning there could be $5 trillion floating around Russia and they are beginning to cotton on that the $ ain't what it used to be, ditto the Chinese.

Buy gold today!

(don't panic, don't panic Mr Mannering)

SILVERHARP2 · Post by **SILVERHARP2** » 27 Jun 2006, 13:16

I think the FED will have to raise rates more then the market thinks, so I believe this will drive out speculators over the coming months, there might be better prices in the next month or so, I?m waiting for $480-$500, that being said buy some now and some later is a reasonable approach.