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32 thoughts on “Are Most Americans Utterly Blind About Gold? Yes.

  1. Maranatha Mark says:

    One other considerartion – Franklin D Roosevelt, under Presidential Executive Order number 6102, confiscated all privately held Gold in the United States on April 5, 1933. Some like radio's Glenn Beck try to guard against this by buy antique coins, but really isn't any guard against this kinda of state sanctioned theft! Another thing to consider when thinking about investing in gold.

    • They paid a certain percentage of the value of that gold (based on the new devalued $), it wasn't outright 'confiscated'. And they didn't go door-to-door and search for gold, so a large number of gold hoarders did not partake in the theft; in other words, they held onto it.

  2. Maranatha Mark says:

    Most American aren't as much 'blind about Gold", but rather most American can't afford to buy gold. It is simple math. 401k's for the most part don't allow for the actual purchase of physical Gold, and in the event that the U.S. Dollar collapses or Hyper-inflation, gold isn't fisiable to use for currency unless buy large ticket items – houses, cars, etc. Silver on the other hand is much more sensiable at current market prices. Look at it this way, if you need to buy a loaf of bread, do you want to hand someone an ounce or even 1/8 ounce of gold, or had you rather hand hand them 1/8 ounce of silver!? In fact you can buy pure silver in "Industrial" form, which is in small shot form (like tiny balls of silver) that handily lends itself to being weighted out in small amounts, but still enough weight to not be lost in a puff of wind, like gold dust. Silver is far more sensible than gold, unless you are working in 10's of thousands of dollars or more.

  3. A 1/10 oz gold American eagle coin sells for about 15% above spot price at my favorite jewelry/coin shop. That is about $190 this morning. One can sell them quickly at a jewelry store or coin shop for spot instantly at some point in the future. Those coins remains very desirable for inflation hedges. It is a myth that gold is only for rich people.

    • CaptTurbo says:

      A friend of mine tried to sell a one ounce gold American Eagle to one of the places that buys gold and they wouldn't offer him close to spot price. The sad thing is that this coin sells for a large premium at any metals broker. So, it might not be all that easy to get fair price for one on the street.

      • Texas Chris says:

        Don't use that broker. Don't go to that shop.

        Find a jeweler, watch tinker, or dentist who is willing to pay spot -1% (or close to it, whatever you're comfy with), and go there.

    • it is 3% above spot at goldeagles.biz

  4. If you buy gold with dollars, you'll still have to sell it for dollars… no grocery store or gas station is going to take gold as currency.

    • unless you are in Utah

    • Classic example of short-term thinking. Dollars aren't forever.

    • No, that's just the point. You can sell gold for any currency, and if push comes to shove you can barter with it. What if the dollar goes south? I mean really, really way far south. It could, and quickly, in the current situation. Gold is really not an investment, it's savings. It's a convenient form to store wealth in. Fiat currency only has value because the government says it does. Commodities (including gold and silver) have value because the market says they do. Governments are ephemeral, markets are permanent as long as people are people. That's why you can't barter with fiat currency (i.e., documents produced by governments). A document only has value in reference to the real good it represents. The purchase of gold is a vote of no confidence in fiat currency and the government that produced it.

    • Here's a case in point, Shane. The Guardian has posted an article entitled, "Euros discarded as impoverished Greeks resort to bartering". If you think it's just the Euro and just the Greeks, think again. This is coming here, and soon.

  5. dgnsubscriber says:

    If you can't afford silver, buy nickels.

    That is also real money.

  6. Years ago, I read Harry Browne’s The Coming Devaluation. From that time on I started buying gold coins whenever I could afford one. Now that I’m retired, nothing helps my blood pressure more than watching my gold appreciate as my savings account depreciates.

    • Texas Chris says:

      I bought my first coins in Kuwait after the first gulf war. I know, I know, don't judge me. Gold was about $280 then, and I paid a lot less for it over there.

      I can't afford gold now, so I buy silver. When I accumulate enough, I trade up for gold.

  7. If you bought an ounce of gold in 1999 for 250 dollars you still have to sell int in 2013 for 1650 dollars.

    • CaptTurbo says:

      I think that's the point. The ounce of gold doesn't change. The value of the fiat paper is what is eroding away. An ounce of gold would buy a man a top end suit back in the 1850s and it will still do the same today.

    • If you kept the same 250 dollars in 1999, you would still have 250 dollars in 2013 not 1650 dollars if you had a 1 oz of gold. Not many investments would give you that kind of return playing with just 250 dollars.

      • If I could go back to 1999 I'd buy Apple stock instead of gold.

        Nearly a 100-to-1 return if you sold at the peak in 2012.

  8. Many of the posts here demonstrate the validity of the authors point. Most of you clearly don't have a clue what the definintion of money is or what gold actually IS.

  9. Dear Sir, I am trying to understand the method to this madness. If we currently do all that we do through a currency known as the dollar. We are using an item that has a certain buying power relative to it's present value. Adjusted by inflation. Right? For example. If i choose to spend said dollar and buy just any item it is subject to a lot of different influences. Right? So, the true measure of a dollar is to buy something that isn't a consumable. If I buy milk it spoils. So, I'm forced to use it or loose it. If I buy a car. It breaks and depreciates. Unless of course I happened to buy a 1970 Dodge Daytona new for $2300.00 years ago, I'm likely to make some money on that. But, there again, there are a lot of things that influence such a market. But, you could see the apprehension felt buy such a speculation. Lots and lots of variables. Now to me, the only thing that really truly effects the market on my 1970 Dodge Daytona is it's desirability. If someone really wants it, it's worth only what they are willing to pay for it. The same rule applies to Gold. Right? I can't eat it, I really can't do much with it. Oh, I suppose I could make a toilet seat out of it. But, come on! Just who's really gonna do that? Saddam Hussein, but not your average person. So, Really what am I gonna do with it? I am gonna buy it for investment purposes only. Or I take the risk of spoiling its value. Right? Okay! Now I have truly arrived at your concept of buying Gold. For the sole purpose of investment. But, that's what America bought a home for. Because we were told it was a good investment. Hey everybody! Understand one thing. The investment is a good investment as long as everybody continues to want it and buy it. I'm reminded of beanie-babies for some reason. If you make investments, only invest short term. And hopefully you get out before everyone else does. Buy a house, Sell the house or eventually it becomes a consumable. Because you will have to do upgrades or no one will buy it. If you buy Gold, buy and sell it. But, don't hold it too long. Sooner or later it will be worthless to you or everyone else. It seems to me that every economy has a bubble. Gold is swelling at an unsustainable rate. It will collapse. Just like housing did….. Could it be because of certain influences, such as, Governments? Everyone should be very cautious when investing. Because nothing is certain. So, please sir stop selling it as if it is!!!!

    • I love the "you can't eat gold argument". The last time I checked you can't each fiat currency either. Nor can you eat the digital ledger entries that comprise most of our money these days. Gold & silver have been money for thousands of years & will continue to be recognized as money long after the US dollar reaches its intrinsict value as all fiat currencies eventually do. Gold is money due to the following characteristics; Durability, portability, divisibility, uniformity, limited supply, and acceptability. Beanie babies, tulip bulbs, crude oil, etc…. do not meet all of these characteristics & therefore while they may be valuable they don't work as money over the long term. As far as buying and selling gold & silver, I have bought & sold gold & silver coins for a few years & have done quite well. I view it as moving depreciating fiat currency into more stable precious metals. I only wish I had started years sooner. One way to look at it is if you had $10000 to put in a safe & couldn't open it for 20 years, would you rather put $10000 in federal reserve notes or $10000 worth of gold coins?

    • Most people have it wrong. Gold is money, just because Pres. Nixon took us off the gold standard doesn't mean that it's not money anymore. Gold and silver have been money for thousands of years. It's not an investment, it's just another way to hold your "dollars". Purchasing power. When the dollar falls, gold goes up, when the dollar is stronger, gold goes down. It's about balance… You don't buy gold like you would buy a stock… That's what people don't understand.
      I was just reading as an example, in 1931, an oz. of gold was worth 35.00. To rent a home was 29.00/month. Today gold is around 1650.00/oz. That 29.00 in 1931 can not pay for a months rent, but the oz. of gold still can.. Gold holds it's purchasing power. that is what it is about.

  10. The Chosen says:

    “A fool and his money are soon parted” Oh, that’s you and your dollars…

    But Gold is King & Silver is Qween. Always has been, always will be.

  11. If you want to buy gold or silver or coins, you really ought to be a member of our buyers club. Paying 15% or more over spot price is foolish and unnecessary. Look at http://www.GoldEagles.biz – All club members buy at Tier 1 pricing with NO MARKUP. Silver is affordable with Silver Eagles at $2 over spot. Gold is 3% over spot.

  12. Tulving is the best place to buy and sell gold…just have to do it in large amounts. I have bought there for years.
    http://www.tulving.com/

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