++ For Jim Jannard - I hope this is not an out of place question.

[Michael Hastings]

Come on, guys. People have been saying paper money is going to collapse any day now for 100 years. Gold, like paper money, is valuable only because it's something people covet, because it's shiny. If there's anything that's going to collapse it's the precious metals market bubble. Why do you think the prices keep going up? Because of people like you jumping on to the bandwagon. As the economy recovers and people realize that no matter what Glenn Beck says there isn't going to be an apocalypse tomorrow, the prices are going to plummet.

People and the tools that enable them to do things (like cameras) are valuable. Currency, whether it be gold or paper or bits and bytes, is just a proxy we've all agreed on.

Gold has some intrinsic value as a material with some unique qualities, but nowhere near its current price. Actually most metals are a reasonable hedge against a true collapse. If I were truly worried, but on a small budget I would buy and store a couple hundred dollars worth of pennies. They are a great value since it costs the government more than a penny to make them, and they are easy to ascertain their metal content, and the metals are commonly used so they should keep pace with any level of inflation.

 

[Kalani Prince]

It is a fair question... the only suggestion I would make is to always be careful with your money in good times. That's when people tend to forget that life is cyclical. We spend everything when times are good thinking "this will never end" and then panic when we are over our head when it turns... and it always does. Each time this happens we seem totally surprised. I have the luxury/curse of having seen this stuff over and over. The 1st few times I was shocked at what a precarious position I had put myself and family in.

I believe in enjoying life. I also believe that that can be done with what's left after I have prepared for most doom possibilities. Prudent is not a very cool word. But I believe in it now. We really don't need most of the stuff we buy... stuff that ends up being "peace of mind bandits".

Jim

Aloha Jim, thank you for your response.. Strangely enough it validates what I've been intrinsically doing for the past 2ish yrs - Minimizing "STUFF" and trying to get down to the bare minimum as far as "stuff" that doesn't really DO anything..

I've sorta had this whole.. "if I haven't physically touched in 6 months, it's gone/donated/sold" mentality and surprisingly I can't really remember a lot of the "stuff" I thought I may need in the future but decided to let go..

I have also gotten myself out of debt entirely which just feels good....

Funny thing is, after it's all stripped away, I am left with a couple of only the things I love.... my son (5yrs old) a couple of motorcycles, a collection of camera's both still and video, 6 pairs of Converse, clothing, shelter, food, and the desire to add value to this planet.

I think I might be secretly becoming a minimalist.

Much love, Kalani-

 

[Kalani Prince]

It is a fair question... the only suggestion I would make is to always be careful with your money in good times. That's when people tend to forget that life is cyclical. We spend everything when times are good thinking "this will never end" and then panic when we are over our head when it turns... and it always does. Each time this happens we seem totally surprised. I have the luxury/curse of having seen this stuff over and over. The 1st few times I was shocked at what a precarious position I had put myself and family in.

I believe in enjoying life. I also believe that that can be done with what's left after I have prepared for most doom possibilities. Prudent is not a very cool word. But I believe in it now. We really don't need most of the stuff we buy... stuff that ends up being "peace of mind bandits".

Jim

PS: I can tell you've engineered the "Peace of mind bandit" out of your products to the highest degree humanly possible. The levels of insanely intense focus you must have had to continually dwell within were surely an exciting experience. I cannot wait to become a Red owner..

 

[Zakaree Sandberg]

Come on, guys. People have been saying paper money is going to collapse any day now for 100 years. Gold, like paper money, is valuable only because it's something people covet, because it's shiny. If there's anything that's going to collapse it's the precious metals market bubble. Why do you think the prices keep going up? Because of people like you jumping on to the bandwagon.

fiat currencies generally dont last longer than 40 years (Historically speaking)..and we are just beyond that.. from when nixon took us off the gold standard and thus making our money Fiat.
so no, your wrong.. people havent been saying the US paper money will collapse for a hundred years, because it hasnt been that long since we were taken off the gold standard..

and also.. gold is not like paper money.. yes people value it because its gold and shiny, also because it is very useful in manufacturing and tools and so on..
it has been the currency backing for ages.. its the one thing that has always been a type of currency (gold and silver)


There is no bubble.. it was being held back.. and now its letting lose.

but its not about a monetary gains profit for me.. its about holding onto my earnings.. my dollars are falling like a stone in a pond...my gold and silver are skyrocketing..

the dollar can not and will not come back.. we have a private bank (the federal reserve)
printing money out the ass with no intrinsic value.. hyperinflation is kicking into high gear, and when people finally lose hope in that fake currency and realize its all a sham.. the precious metals market will really sore.. things are cheap now..
they were cheaper a year ago.. but they will blow up..
and again.. its not that the metals are getting more valuable.. its that the world currency is tanking

 

[George Butterfield]

being aware of the looming and very real issues of hyperinflation and full potential collapse of the fiat money system.

We have to try to stop it. The only way this can be done is by reducing the size of Government, and get the Government to Stop Monetizing the Dept.

 

[Jannard]

There are a lot of very smart guys on both sides of this discussion. I'd remind those that feel compelled to forecast the future, your posts could forever haunt you here.

Everyone has an opinion about money, religion and politics, including me. Sharing specific opinions can quickly turn into the appearance of pushing your convictions... which is never well received. When I am asked for my opinion, as I was in this thread, I'll try to offer suggestions and things to consider. I can't know every detail of someone's situation and I'm not sure my specific advice would be correct anyway.

This forum is about RED cameras. We tend to limit debate and encourage helpful discussions. We even bend the rules sometimes if we think the discussion is valuable and relevant to being informed citizens... but we watch these closely knowing the possibility exists that things can get testy pretty quickly.

Jim

 

[Michael McVicar]

and the desire to add value to this planet.



Much love, Kalani-

Probably the most important thing you could have.

 

[Zakaree Sandberg]

true words jim. loud and clear

 

[Evin Grant]

I think the answer is clear, invest in gold plating your Epic and silver bullets :biggrin:

 

[Stephen Williams]

f

There is no bubble.. it was being held back.. and now its letting lose.

What has been holding it back? I am sure many people said the same about real estate 5 years ago, however I would have thought bombed out real estate might be better bet V gold at this point in the cycle.

 

[Chuck Z]

Housing prices are falling once again. There are some fears of a double dip in the housing markets.

 

[Jun-Dai]

Gold has some intrinsic value as a material with some unique qualities, but nowhere near its current price. Actually most metals are a reasonable hedge against a true collapse. If I were truly worried, but on a small budget I would buy and store a couple hundred dollars worth of pennies. They are a great value since it costs the government more than a penny to make them, and they are easy to ascertain their metal content, and the metals are commonly used so they should keep pace with any level of inflation.

Yes. While gold does have some intrinsic value that would prevent an investment in gold from ever losing all its value (as opposed to stocks, or in a doomsday scenario, US treasury bonds or even the US Dollar), it is not something that always goes up in value, or is even traditionally a good investment. I would not want to have bought gold any time in the 1980s, and where the price of gold is now is starting to look a lot like early 1980.

Silver is even worse:

They make the housing boom seem like a small bump in comparison. In contrast, zinc (which pennies are made of) has a much more rational price history (I can only find a 5-year chart):

While there are some logistical considerations in stashing, say, $30k worth of zinc, it would make far more sense than gold as a place to put your money if you truly believe in the fall of fiat currency, particularly because, as Michael points out, we can get it at a bit of a discount in the form of pennies.

In summary, if you want your money out of currency and things that are based on currency and you fear hyperinflation, precious metals seems like the most overpriced choice possible as an alternative investment, and there are plenty of other options (iron, oil, land).

 

[Jason Sinclair]

I'm not a rich man in monetary wealth but i would suggest invest in people and you will never go wrong.

 

[noah newtown]

...invest in the "wrong" people and you will go wrong!!!..mmm

 

[Stephen Williams]

Housing prices are falling once again. There are some fears of a double dip in the housing markets.

Your unlikely to see huge falls from here (30% or more) for real estate, as real estate in the USA is trading around intrinsic value now IMHO. On the other hand if gold fell 50% from here it would not seem cheap + a bargain based on the last 25 years.

I never understood why people like to invest in things simply because the price has risen sharply & people are talking about it. Internet stocks, Housing now Gold

 

[sandro-bachmann]

its really simple, just change your dollars into swiss franks,... then your money is save...

 

[Stephen Williams]

its really simple, just change your dollars into swiss franks,... then your money is save...

Hi,

I have lived in Switzerland for 17 years, I currently own 20 times more dollar domminated investments as they seem relatively cheap, they have also provided a far better return even in CHF terms. Swiss francs seem very expensive to me right now, when the $ comes back in fashon & it will expect to loose 30-50% of your dollars.

 

[Chad Clemans]

Food storage.

 

[Terry VerHaar]

I can't help myself. I'll offer up two thoughts: :undecided:

1) The past is never a reliable predictor of the future, and

2) Inform yourself about the tulip bulb bubble of the 1600's; very informative.

 

[Stephen Williams]

I can't help myself. I'll offer up two thoughts: :undecided:

1) The past is never a reliable predictor of the future, and

2) Inform yourself about the tulip bulb bubble of the 1600's; very informative.

1) People repeat the same mistakes time & time again with investing buying whats trendy after the price has risen

2) Your profit from any investment is based on your buying price, only buy when you believe the intrensic value to be more than the price, giving a degree of safety.