Money All you investors. Got a question. - Page 2

tooge · 12-02-2008, 12:14 PM

Ok, so the ecomnomy stinks. Everywhere you read there is talk about it getting worse before it gets better. The real optimists think by 2010 we will be turning things around and the real pessimists talk about hyperinflation, the great depression, and the complete colapse of the dollar. I am probably somewhere in the middle, but I really dont know about economics. So, is it wise to start looking at gold as part of ones portfolio? If so, how much by percent? Do any of you buy gold, and if so, how and where?

Stewie · 12-02-2008, 01:47 PM

Quote:

Originally Posted by jidar

In May Gold was at an historical high of over $900/ounce

today it's still over $700 which is more than three times what it was in 2000

I'd say that getting into gold right now is probably too late.

Unless you really understand the gold market, the scenario you describe is true but not how to look at things.

There are two huge things that are going on right now concerning the gold market.

1) The value of the US$ has risen because a huge number of dollar shorts are unwinding their trades to get cash. This is only short term. The dollar will resume it's bear trend in the first half of '09.

2) The Comex price of spot gold vs. the physical market it really skewed. Demand for physical hasn't waned yet the Comex price is around $800. That will work itself out in time and the Comex price will rise. The Comex only deals in 100 oz. denominations and it appears that people are starting to take delivery of the gold rather than cash settlements. The Comex only has about 21 million ounces of gold before they run out.

The rise in the price of gold is a sign there are huge problems in the US$ and in U.S. fiscal issues. Printing money ad nauseum is no way to defend a currency, but here we are.

If you think things are going to turn around soon and home prices will suddenly rebound to '06 levels and everyone can pay their mortgage and $20+ trillion worth of bad debt is going away, then by all means ignore gold.

**bogey** · 12-02-2008, 02:05 PM

I'm in Vanguard Life Cycle Fund, 2020 retirement I think this is how it's allocated. Any thoughts?
Ranking
by
Percentage Fund Percentage
1 Vanguard Total Stock Market Index Fund Investor Shares 56.3%
2 Vanguard Total Bond Market Index Fund Investor Shares 29.4%
3 Vanguard European Stock Index Fund Investor Shares 7.8%
4 Vanguard Pacific Stock Index Fund Investor Shares 3.4%
5 Vanguard Emerging Markets Stock Index Fund Investor Shares 3.1%
Total — 100.0%

Calcountry · 12-02-2008, 02:08 PM

Quote:

Originally Posted by tooge

Ok, so the ecomnomy stinks. Everywhere you read there is talk about it getting worse before it gets better. The real optimists think by 2010 we will be turning things around and the real pessimists talk about hyperinflation, the great depression, and the complete colapse of the dollar. I am probably somewhere in the middle, but I really dont know about economics. So, is it wise to start looking at gold as part of ones portfolio? If so, how much by percent? Do any of you buy gold, and if so, how and where?

Middle of the road? That is where you go to be run over.

Gold? bought that 8 years ago should be about 10 % of your holdings at all times.

Cash? Sold all my stock the Wednesday before the second vote on the 700 billion and am damn glad I did.

If you are still in the market, you are screwed plain and simple. If Obama can figure out a way to tax your losses, he will.

Excessive government intervention in careless and reckless pork barrel, boondoggle fashions will lead to inevitable malaise for years. The "New Deal" didn't get us out of the last depression WWII did. New Deal II sure as heck won't get us out of this downturn( I am not willing to admit it will even be a Depression yet) either.

When people no longer give a damn, and find it highly unusual for people who are in distress to discard their animals, then we are in a depression. But as long as we have snooty high falutin ladies who feel those "assholes" who just dumped the dog "ought to be this and ought to be that", then times are good.

Did she ever consider, that the dog may have just ran away, and was too damn stupid to find its way home? Perhaps it deserved its fate for being so damned stupid?

I dunno, anyway, plenty of dog food still going out my door.

**Skip Towne** · 12-02-2008, 10:42 PM

I havent watched the silver market recently but I used to buy silver eagle coins. I had one of those green plastic boxes from the US Mint full of them when my house burned down. After the fire I dug the melted ball of metal out of the ashes and took it to the bank. They gave me $700 for it. Silver is really hard to destroy.

**jjchieffan** · 12-02-2008, 11:20 PM

I remember playing the investment game a few years back. It was when Microsoft was freefalling. It had peaked around $140. I bought it at $65. It continued to drop to below $50, then climbed back up to $69. I sold then and haven't tried speculating since. I did get out at the right time though, becuase after I sold, Microsoft continued to fall, and I don't think it has hit any where near $69 a share since.

Fat Elvis · 12-03-2008, 02:04 PM

Quote:

Originally Posted by Mark M

The key would be to stop the current bleeding and switch to a lot of "safe" (read: less volatile) investments such as bonds, CDs at a stable bank, etc.

MM
~~

The dividend yeild on a lot of equities now far outpaces what you can get for bonds or CDs. Even if stock prices go down more (likely), your dividend yield will provide more of a return than a lot of traditional "safe" investments. Once the economy starts to recover, the high yiedling dividend equities will more than likely be bouyed by the market.

googlegoogle · 12-15-2008, 02:38 AM

read this today. 12% if you want to take the chance.

http://abcnews.go.com/Business/Story?id=4549802&page=2

Walmart,procter gamble, cigarette maker....forgot the name of the stock.

BWillie · 12-15-2008, 02:56 AM

Quote:

Originally Posted by googlegoogle

read this today. 12% if you want to take the chance.

http://abcnews.go.com/Business/Story?id=4549802&page=2

Walmart,procter gamble, cigarette maker....forgot the name of the stock.

What does the lending club do if someone defaults on their loan? Especially if they have no real property or collateral. I guess I don't understand why only less than 1% of the loans are defaulting with these people of horrible credit scores

12-02-2008, 12:14 PM
tooge MVP Join Date: Feb 2007 Location: Liberty, MO Casino cash: $524112	All you investors. Got a question. Ok, so the ecomnomy stinks. Everywhere you read there is talk about it getting worse before it gets better. The real optimists think by 2010 we will be turning things around and the real pessimists talk about hyperinflation, the great depression, and the complete colapse of the dollar. I am probably somewhere in the middle, but I really dont know about economics. So, is it wise to start looking at gold as part of ones portfolio? If so, how much by percent? Do any of you buy gold, and if so, how and where?
Posts: 17,262

12-02-2008, 02:05 PM	#17
bogey Supporter Join Date: Oct 2007 Location: California Casino cash: $10005290	I'm in Vanguard Life Cycle Fund, 2020 retirement I think this is how it's allocated. Any thoughts? Ranking by Percentage Fund Percentage 1 Vanguard Total Stock Market Index Fund Investor Shares 56.3% 2 Vanguard Total Bond Market Index Fund Investor Shares 29.4% 3 Vanguard European Stock Index Fund Investor Shares 7.8% 4 Vanguard Pacific Stock Index Fund Investor Shares 3.4% 5 Vanguard Emerging Markets Stock Index Fund Investor Shares 3.1% Total — 100.0%
Posts: 2,264

12-02-2008, 10:42 PM	#19
Skip Towne Supporter Join Date: Apr 2001 Location: T-Town Casino cash: $10004900	I havent watched the silver market recently but I used to buy silver eagle coins. I had one of those green plastic boxes from the US Mint full of them when my house burned down. After the fire I dug the melted ball of metal out of the ashes and took it to the bank. They gave me $700 for it. Silver is really hard to destroy.
Posts: 69,689

12-02-2008, 11:20 PM	#20
jjchieffan Supporter Join Date: Dec 2005 Location: Highlandville, MO Casino cash: $-197752	I remember playing the investment game a few years back. It was when Microsoft was freefalling. It had peaked around $140. I bought it at $65. It continued to drop to below $50, then climbed back up to $69. I sold then and haven't tried speculating since. I did get out at the right time though, becuase after I sold, Microsoft continued to fall, and I don't think it has hit any where near $69 a share since. __________________ Genesis 1:1 In the beginning, God created the Heavens and the Earth. Following the historical accounts and the genealogy from that point on, the age of the Earth is approximately 6000-7000 years old. The Big Bullshit Theory is a lie. It and the evolution theory go against real science. Satan has used our public school system to brainwash everyone into believing these lies. Be not decieved.
Posts: 13,355

12-15-2008, 02:38 AM	#22
googlegoogle Banned Join Date: Nov 2008 Casino cash: $10004900	read this today. 12% if you want to take the chance. http://abcnews.go.com/Business/Story?id=4549802&page=2 Walmart,procter gamble, cigarette maker....forgot the name of the stock.
Posts: 4,700