I think Strongirish nailed it in both paragraphs. Especially the point about having to buy metals retail and sell wholesale.
Gold
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Strongirish,
There's something to be said for your experience; you've made some good points.
I still think there is plenty merit to be found in gold investments because in today's case I do honestly believe the prices will go up even more dramatically than they have already. I will agree that there are "better" ways to make money, but I still personally have my convictions on gold's utility and hopefully will be in a position to put my money where my mouth is before it's too late.
As for your greatest successes, oil seems like a sure deal - particularly if you latch onto some fledgling company with a claim that pans out. Unfortunately, today conventional oil reserves are getting awfully scarce and the massive oil conglomerates whose stocks are through the roof will be the only players who can afford to undertake the offshore and tar sands projects. There's lots of oil out there but it's going to be hellacious to extract.
Real estate used to be a sure thing in everyone's eyes but today owning land is out of the grasp of most people, sadly enough. We've been set back a long ways over the past few years. In many markets today, real estate is a very questionable investment unless you are already wealthy and can own everything outright. It definitely can be a double edged sword.
There's something to be said for your experience; you've made some good points.
I still think there is plenty merit to be found in gold investments because in today's case I do honestly believe the prices will go up even more dramatically than they have already. I will agree that there are "better" ways to make money, but I still personally have my convictions on gold's utility and hopefully will be in a position to put my money where my mouth is before it's too late.
As for your greatest successes, oil seems like a sure deal - particularly if you latch onto some fledgling company with a claim that pans out. Unfortunately, today conventional oil reserves are getting awfully scarce and the massive oil conglomerates whose stocks are through the roof will be the only players who can afford to undertake the offshore and tar sands projects. There's lots of oil out there but it's going to be hellacious to extract.
Real estate used to be a sure thing in everyone's eyes but today owning land is out of the grasp of most people, sadly enough. We've been set back a long ways over the past few years. In many markets today, real estate is a very questionable investment unless you are already wealthy and can own everything outright. It definitely can be a double edged sword.
There is no shortage of metel of any kind . When the prices are low the mines shut down . When the prices go up the mines reopen . For gold to be profitable to mine the price needs to be over 600 per ounce . Even the Comstock load lost money and it was the biggest silver strike in the US . What does make money is the people buying the shares . Ask the Hunts how much money they made by cornering the silver market in the 80s . Ask yourself how much stuff is made from silver these days ? If it all crashes I would bet a pound of tobacco would trade better than a a ounce of gold . How much money does Wall Steet have to steal before people wake up ? Nothing happens until something is made and sold .
Forsooth, do you know much about Walter E. Williams ?
He sums up the role free market economics better than most anyone I know; sorry the quote is so long, but I reccomend reading more of him for a strong argument to free market capitalism vs. any other economic model.
"Since it's not considered polite, and surely not politically-correct to come out and actually say that greed gets wonderful things done, let me go through a few of the millions of examples of the benefits of people trying to get more for themselves. There's probably widespread agreement that it's a wonderful thing that most of us own cars. Is there anyone who believes that the reason we have cars is because Detroit assembly line workers care about us? It's also wonderful that Texas cattle ranchers make the sacrifices of time and effort caring for steer so that New Yorkers can have beef on their supermarket shelves. It is also wonderful that Idaho potato growers arise early to do back-breaking work in the hot sun to ensure that New Yorkers also have potatoes on their supermarket shelves. Again, is there anyone who believes that ranchers and potato growers, who make these sacrifices, do so because they care about New Yorkers? They might hate New Yorkers. New Yorkers have beef and potatoes because Texas cattle ranchers and Idaho potato growers care about themselves and they want more for themselves. How much steak and potatoes would New Yorkers have if it all depended on human love and kindness? I would feel sorry for New Yorkers. Thinking this way bothers some people because they are more concerned with the motives behind a set of actions rather than the results. This is what Adam Smith, the father of economics, meant in The Wealth of Nations when he said, 'It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interests.'"
He sums up the role free market economics better than most anyone I know; sorry the quote is so long, but I reccomend reading more of him for a strong argument to free market capitalism vs. any other economic model.
"Since it's not considered polite, and surely not politically-correct to come out and actually say that greed gets wonderful things done, let me go through a few of the millions of examples of the benefits of people trying to get more for themselves. There's probably widespread agreement that it's a wonderful thing that most of us own cars. Is there anyone who believes that the reason we have cars is because Detroit assembly line workers care about us? It's also wonderful that Texas cattle ranchers make the sacrifices of time and effort caring for steer so that New Yorkers can have beef on their supermarket shelves. It is also wonderful that Idaho potato growers arise early to do back-breaking work in the hot sun to ensure that New Yorkers also have potatoes on their supermarket shelves. Again, is there anyone who believes that ranchers and potato growers, who make these sacrifices, do so because they care about New Yorkers? They might hate New Yorkers. New Yorkers have beef and potatoes because Texas cattle ranchers and Idaho potato growers care about themselves and they want more for themselves. How much steak and potatoes would New Yorkers have if it all depended on human love and kindness? I would feel sorry for New Yorkers. Thinking this way bothers some people because they are more concerned with the motives behind a set of actions rather than the results. This is what Adam Smith, the father of economics, meant in The Wealth of Nations when he said, 'It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interests.'"
That is why it's so troubling to see the North American manufacturing economy dismantled and outsourced. When we are a perfect "information economy" and our current wealth goes bust, we won't have the means to produce our essentials and there is neither love nor credit enough from foreign countries to ensure that we'll get what we need...
We "need" greed, but we need it directed in a certain way for it to be of any benefit to the majority. Greedy shareholders looking to slash labour costs overseas don't boost anyone but themselves in the process - certainly not their sweatshop employees, an certainly not the average consumer in the long run.
We "need" greed, but we need it directed in a certain way for it to be of any benefit to the majority. Greedy shareholders looking to slash labour costs overseas don't boost anyone but themselves in the process - certainly not their sweatshop employees, an certainly not the average consumer in the long run.
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