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Thursday, October 30, 2014

Oh Gold.. How You Took Them All For Fools...

We feel empathy for people who bought gold three years ago yesterday..

Well as empathetic as one can feel for either greedy people who needed to expand their profit portfolio or innocent suckers who bought into the Lie that gold was a great investment because it was tangible, etc etc,,

On October 29, 2011 one ounce of gold which has the weight of a couple oreo cookies, was valued at $1,901.35 so obviously using simply math, if one purchased 10 of those itty-bitty bars or coins on that day, $19,013.50 was spent..
On October 29, 2014, gold closed at just around $1,206 and as of this writing is trading at $1,196.14

This means in a span of 36 months, $705.21 was lost per teeny weeny bar or coin  ($7,052.10 for ten bars/coins)

Let's say you bought a new or used car and took out $7,000 for 36 months while paying the rest of the car's sale price as your down payment..

Guess how much interest you would have paid based on 5% int..?
$708.99

So in other words, if someone on Oct. 29. 2011 bought a car and paid the full amount without taking on a loan, he/she would have Saved $700 and the clever-clever investor who bought gold that day Lost $700

Now to be fair, we're sure the price of gold will eventually rise..

Perhaps to $1250..  Maybe to $1300..
Because if you're ever expecting it to go up to $1900+ again, you better hope and wish and pray for a full-blown financial panic

You better close your eyes tight, grip your Holy book and make it a daily ritual of asking and begging..

Only when people are genuinely scared about the state of the economy and imminent collapse and deeply fearful they will lose every other investment they have i.e. stocks, home, etc.. will they clamor aboard the gold bullion 'boat'

We honestly never understood why anyone wanted to buy gold, especially those they acquire in certificates rather than real physical in-hand possession..

We've yet to ever see our local supermarket, gas station, fast-food restaurant, home improvement store or turnpike toll booth accept gold as payment..   Ever...

So possessing it is one thing but ultimately the itty bitty bars and coins have to be converted back to the same ole' worthless cash

And then there's the assumption someone in time of trouble will just automatically give you fair market value..
~ A typical gold brick weighs one troy oz. or 27.5lbs which is the equivalent of 440 individual mini-bars or coins..  If one ounce of gold is selling for $1200, then a brick would go for $528k

Let's say gold is trading at $2100 officially and the nation is topsy-turvy, do you really think you'd be able to walk into a gold-buyer and get $2100 when its obvious you're desperate to sell?

Think how pawn shoppes work..

We've always said and will continue saying the best way to make sure you are ahead of the financial game is to avoid borrowing and lending at all costs as realistic and practicable to your personal situation.
~ Confederate gold..  Smelted, its worth the same as any other nation's..

If you are looking to buy a car, buy one you have the means to pay in full at time of purchase unless the vehicle is so exceptional or an offer so great it was too good to pass up..

Don't charge on credit cards what you know you can not pay in full when bill comes

Avoid mortgages at all possible..  You may not have anything at the end of a rental period but at least you have flexible mobility to relocate based on where jobs are or other personal factors..
Put yourself in the position where as few to no one can profit off you.

Because if gold today was magically $3k a bar and you sold them for a nice profit, guess where that money is now going?

Paying car and credit card interest and toward the mortgage...

And oh yes.. paying tax on your investment profit..
~ Commemorative 1/4oz 2014 Sochi Winter Olympics gold coin

But we don't want to end this posting on a downer..     We feel how your suffering after following the crowd and parting with your precious money so irresponsibly..

So let us tell you of a great investment opportunity which is sure to recoup your investment 3 to 5 times over in mere months,,,

What do you know about um.. bridges?
____________________________________________
PS:  Yesterday's post was a very important one to understanding why the Financial System and Fed is SO Corrupt and why ultimately you all will suffer economically for it..

We see not many have read it compared to other lighter fare we submit..

Big mistake..  Don't skip it..  Don't be intimidated by it..

We made it easy to understand & Knowledge is Power.