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Is it wise to store your money and assets in gold bars?

Dear all,
My former wacko friend Stefan stored a great deal of his assets and wealth not in the bank nor in stocks, but in the form of gold bars. An extreme pessimist and doomsayer, he believed that the US economy was doomed to collapse as well as the value of the dollar, so he stores a great deal of his wealth in gold bars, which he claims maintains higher value and stronger stability than the dollar. As he says this, there is a glow on his face as though hes found a secret formula that everyone else is too stupid to realize. Gold, he says, is the ultimate permanent stable form of money, which never loses its value.

Plus, he believes that the Federal government can steal the money in your bank anytime it wants to and that the safety of your bank balance was an illusion, whereas they can't steal his gold bars, which he stores in some chests in a secret location that no one but him knows about. He says he put them in an area that is 100 percent impossible to find. (Though I think that with his weak will, anyone who captures him and tortures him like they do in the movies could easily extrapolate that information from him)

So I was wondering, is he right or wrong? And to what degree?

I asked a New York stockbroker friend about this who is very good in his trade, and he said that this reasoning was flawed, and that gold fluctuates just like the dollar does. The only time that gold yields a higher value, he maintains, is during recessionary periods.

What do you all think?

Everybody knows that it's better to store your wealth in raw uncut diamonds!

If you're living in a poor country, you're best to keep your money in a US bank. Argentinia closed their banks in '03 and you could withdraw 20% of what you had in your account. Mexico did a similar thing in the 90's. Infact virtually all the third world countries do this on a regular basis.

Stefan is right gold is a good store of value. The price does go up and down--but so might the currency that you are storing your savings in.

I think it's prudent to keep at least 10% in gold --the rest in a major stable currency. Don't trust the banks in third world countries.

Dont worry Wienie. Its something you will never have to worry about on your $3 a day income

WWu777 wrote:Is it wise to store your assets in gold bars?

Dear all,
My former wacko friend Stefan stored a great deal of his assets and wealth not in the bank nor in stocks, but in the form of gold bars. An extreme pessimist and doomsayer, he believed that the US economy was doomed to collapse as well as the value of the dollar, so he stores a great deal of his wealth in gold bars, which he claims maintains higher value and stronger stability than the dollar. As he says this, there is a glow on his face as though he’s found a secret formula that everyone else is too stupid to realize. Gold, he says, is the ultimate permanent stable form of money, which never loses its value.

Plus, he believes that the Federal government can steal the money in your bank anytime it wants to and that the safety of your bank balance was an illusion, whereas they can’t steal his gold bars, which he stores in some chests in a secret location that no one but him knows about. He says he put them in an area that is 100 percent impossible to find. (Though I think that with his weak will, anyone who captures him and tortures him like they do in the movies could easily extrapolate that information from him)

So I was wondering, is he right or wrong? And to what degree?

I asked a New York stockbroker friend about this who is very good in his trade, and he said that this reasoning was flawed, and that gold fluctuates just like the dollar does. The only time that gold yields a higher value, he maintains, is during recessionary periods.

What do you all think?

Mr.Wu:

First, your former 'wacko' friend Stefan AT LEAST has some money to put into gold bars. Do you often make it a point to engage in name calling, especially with someone who provided you air transport AND four months of free accommodation?? Calling your friend wacko is indeed funny coming from someone who has been diagnosed schizo AND has documented time in an institution.

You would be wise to check out some economic history, particularly with regards to the year 1933. At that time, then U.S. President Franklin Roosevelt declared a National Bank Holiday. In other words, he closed the nation's banks. People did not know when they would be able to retrieve their funds.

Gold has been used for thousands of years throughout the course of human history. Do you even KNOW the London Spot price for gold?? That price closed at $733.45 at the close of trade in London on September 20th, 2007.

Wu, I would heartily recommend you do more reading and by far less condemning and generalizing with regards to gold.

I_PatriaTexefor_efl

I did graduate work in economics and have the equivalent of a masters. I loved the discipline.

These guys are right. In the 80's we had 10+ inflation and interest rates went all the way 21%. Things shut down at that level. I'd definitley be in gold when something like that happens. In the 1930's, the banks were closed and you got a percentage of what you had in the bank. In germany in the 30'S the currency became worthless because of hyperinflation. So, yes it can happen to a major currency.

Gold/silver will protect you from that.

Since some want to bring "economic history" into the picture, I would ask who said it was gold vs. the bank?

The fact is there is no one place that is best to store your money. That is why those who have it keep it in both local accounts and foriegn accounts. They put into real estate, as certain locations, regardless of what is on the property, are a good place to "store money". Long standing, stable, publicly traded companies can be a good place to "store money", with a possibility for growth. (Not everyone who buys stocks does so with the intention of "flipping it") Some are, yes, into gold. Others are into storing money in the form of diamonds (though that is a false market). Some like to put it into oil. Investing in oil (not those who are "hoping to strike") can be a great place to "store money".

Then there are those that will tell you that money should never be stored, but should always be in motion. Gold bars take up space, and if things really got bad, you only have as much money as you can protect by your own hand or gun. Money constantly moving through a global sea of information might be a safer bet.

Personally I think you should store your money in a Jerry Bruckheimer movie.

I don't think you're going to find a good correlation between recessions and higher gold prices. GOLD prices mostly reflect supply and demand for gold, and a premium when there is monetary instablity--that is a fear of inflation.

I think someone would be better off investing their money in a high-yield money market account, which is just a fancy name for a savings account with high interest, that limits how often you can withdraw money.

These have fixed interest and pretty much zero risk. Generally, you can get these with 5.5% APY, so if you have $100,000 invested it pays $5,500 per year, if you have $10,000 invested it pays $550 etc.

Also, I think you can get a Certificate of Deposit that pay 5.9% APY, but you're not allowed to withdraw any money until the end of the 12 month term.

he believes that the Federal government can steal the money in your bank anytime it wants

Lol, paranoid.

gmm567 wrote:I did graduate work in economics and have the equivalent of a masters. I loved the discipline.

Yeah, right. Sure you do. You write like a f***ing re-tard and are seemingly unable to communicate a lucid and/or coherent thought.

Tell us another one, dip-shit.

Jack wrote:I think someone would be better off investing their money in a high-yield money market account, which is just a fancy name for a savings account with high interest, that limits how often you can withdraw money.

These have fixed interest and pretty much zero risk. Generally, you can get these with 5.5% APY, so if you have $100,000 invested it pays $5,500 per year, if you have $10,000 invested it pays $550 etc.

Also, I think you can get a Certificate of Deposit that pay 5.9% APY, but you're not allowed to withdraw any money until the end of the 12 month term.

he believes that the Federal government can steal the money in your bank anytime it wants

Lol, paranoid.

Jack:

WOWZERS!! You're a real fountain of financial sophistication, ain't ya?? 5.9% per year is just totally awesome, dude!! Let's take a closer look at that fantastic financial recommendation, retardo....

Imagine you are in the 28% tax bracket, which means you'll have to declare the incredible 5.9% on your tax return. This basically means that you've lost 28% of that pathetic $5900 per year. You would think we'd be done by now, right???

Nope, dip-f***ing dunk, not yet!!! We must now take a look at.........INFLATION! We'll use the Consumer Price Index as a general guideline. Let's imagine the annual Inflation Rate is running at a very politically acceptable rate of 3%. Simply put, you've just had $3000 shwacked off of that $5900 per year.

Putting it all together as follows: TAXES @28%($2800) PLUS the Consumer Price Index of 3%($3000) leaves us with a NET Annual return of a paltry $100 per year. Way to go, moron!!!!!

Jam your idiotic financial advice up your ass.........

I_PatriaTexefor_efl

Do you know the definition of lucid and coherent? Probably not.

You're not worth talking to.

Do you know the definition of lucid and coherent? Probably not.

You're not worth talking to.

Sure I do: the exact OPPOSITE of all your one-line, non-sensical brain-farts on this group!

Koholznik

Actually, I've been reading up on gold investing and it doesn't sound like such a bad idea. But, obviously there is some risk involved.

I_PatriaTexefor_efl, first off, I want to thank you for not resorting to childish name calling, that really displays your maturity.
Second, taxes? inflation? Who said anything about investing in US currency? Who said anything about being subject to US taxes? Who said anything about living in the US? And I only used the dollar as an example, obviously, the Euro or virtually anything else would be a much smarter investment than the failing dollar.

Anyway, about your attitude; you need to go back to 1st grade were you can learn respect for other people. You're not gonna draw me into that trap of name calling and shouting slander. You need to find something to do with your time, stop trolling on the internet. I'm not going to read or respond to anymore of your posts until you stop with the name calling (wow, now I sound like your first grade teacher), and hopefully you'll be banned within the next few days.
-Some guy who's better than you

I_PatriaTexefor_efl wrote:
WOWZERS!! You're a real fountain of financial sophistication, ain't ya??

..

retardo....

...

Nope, dip-f***ing dunk, not yet!!!

...

Way to go, moron!!!!!

...

Jam your idiotic financial advice up your ass.........


I_PatriaTexefor_efl

http://en.wikipedia.org/wiki/Ad_hominem attacks do so much to get your point accross, don'tcha know.

Yeah, Thanks just so much.