Sunday, September 27, 2009

$15,000 Gold?

Robert Kiyosaki, along with friend and author of the Rich Dad Advisor Book, Guide to Investing in Gold and Silver, Mike Maloney, explains why gold and silver are vital investments for todays economy - and their explanation on why the price of gold could rise to $15K deserves consideration.

Note: Before our money supply exploded, I suggested $5-6K Gold - Link Gold How High?

Peter Schiff also suggested $5K gold by 2012 - Link $5000.00 Gold By 2012 - Dollar Never Recovers - Game Over


BxCapricorn said...

This is looking like a repeat performance of last September through December, where commodities got pushed up, only to take a dive when the carry trade reversed. Those large traders, hedge funds, margin called traders, mutual fund redeemers, etc...that are forced to liquidate, will sell their assets. Many of them are smart investors and own hard assets like gold and silver, copper and oil, rare earth metal mines, etc.

Down will go the assets that made sense, and up will go the dollar. It will drive you crazy. When the Fed has to back off their programs and stop holding down interest rates through quantitative easing, interest rates will rise, and conservative investors will move out risky markets and into solid interest rate offers. Treasuries will be bought, and risk avoided.

People like Mike Maloney don't say you can triple your gold investment, they say you can see $15K. Why do they care if you make money? Why would they help create competing buyers, for a limited commodity that they wish to own? They are preying on your greed, and selling you speculation. Madoff did this same exact thing, and yet by tying the idea of gold ownership into a yarn of patriotism, government conspiracy, etc....they hook an audience of people...and then fleece them. The writers and speakers work for the Mining industry.

Mammoth said...

This is probably a dumb question:

When Gold is $15K/oz, what will a loaf of bread cost?

Anonymous said...

If the dollar hit's 0 as mentioned, your better off having commodities that can be used to live off of and also for barter. Food, Smokes, Booze, Bullets, PROPANE! etc.. You can't eat silver or gold, but I guess you can melt it for other uses. I would stick with the wise investor that says keep at least 10 - 15% in gold and silver and not more or less.. These guys just want to sell their books and material, or try and hike the price of gold through fear so they can unload on you.

Anonymous said...

Some folks think the situation will get totally out of hand (they're the ones posting something to the effect "you can't eat gold"). If things get that bad then about every preparation is meaningless (really, be honest, how long can one go without access to ANY modern supplies)?

Some folks think the USD will continue as top dog and that gives the US license to thumb its nose at the world (hope you have a "plan B" on hand).

Perhaps it is more realistic to think of some scenario between the two above and of physical gold as the safest avenue (of those available) for placing savings in times of uncertainty. If it appreciates,fine. But first and foremost is the requirement that it at least hold its value.

Put another way, if some circumstances forced you to put all your savings/wealth into one medium, which would you choose?

US Treasuries?
US Dollars?
Foreign Currency/Bonds?
Real Estate?
Oil futures?
Guns & Ammo?
Agriculture ETF's?
Physical Gold

Your thoughts?

BxCapricorn said...

It's not really complicated. People are making it complicated because they don't just want to make it through a tough time...they want to "game" a tough time. If you really didn't want to care, you would spend a few thousand, not on two ounces of gold, but on a year of food.

You know that if the stuff hits the propellers, the banks won't be looking to crack down on non-payments, and force foreclosures. They'll be too busy dealing with their own liquidation.

Crime? Sure. That's something to contend with. Weapons? Everything is one, yours should be simple and untraceable. Four dollar crowbar?

Gold won't protect you. It's too obvious. It's too heavy. Think camping supplies.

Randy said...

I urge you all to watch these videos:

Zimbabwe inflation rate hits 11.2 million %

And this video was made a mere 3 months later: Currency was now absolutely worthless and gold the only money accepted - So what good is gold?

Gold for Food

I firmly believe the US currency will significantly fall in value over the next 1/2 decade (if not collapse) and I strongly grasp the concept that gold is one of our few purchasing power protectors.

Lets hypothetically say that today you are a multi-millionaire and all your net-worth is in dollar denominated assets (stocks, bonds, CD's, dollars, etc). What happens to your net worth and purchasing power in a hyperinflationary blowout?

Well, your net worth will remain the same, however your purchasing power will collapse. Had you diversified into gold, it (gold)would have significantly risen in value as the dollar fell - helping to maintain your purchasing power... hope this concept makes sense.

Dollar: Faltering Foundation of US Economic Strength



BxCapricorn said...

Just a side thought. Remember how they showed that coins like pennies and nickels are worth more for their metal content?

Think about hoarding your coins and breaking dollars whenever possible.

Randy said...

BxCapricorn - though your point is made in reference to today's coins, which cost more to mint than the acutal face value of the coin (due to the metals content)this is a much better point for pre 1965 silver coins!

To all my readers - please know that 1964 and earlier dimes, quarters and half dollars are made of 90% silver and are worth approx 10 times their face value today - based on today's going silver price. Therefore, sift through ALL your coins and look for and hoard these little treasure. One day, as the dollar collapses, these little guys will be worth many thousands of times their face value and may be the determinant as to whether or not you can put food on the table tomorrow - think about it!


BxCapricorn said...

My parents owned five laundromats in the Bronx when we were kids, and we counted the coin. Every time we heard that high tinkle sound of silver quarters as we threw handfuls of coin onto the top of the separating slope, we'd cheer. My father collected those beauties in a separate pile, and you are dead on.