If you bought gold 20 years ago, it would have cost less than 300 an oz. You would sell it today for 1600 bucks an ounce. So how can it not have been a great investment. It required no maintenance fees and could be kept in a safe or bank box.
If you had 1 lb, it would have cost 4800 bucks and now would sell for 25,600 dollars. That is a great investment.
- You, of course are correct. My apologies to the much more financially responsible drunken sailors.
- All other things being equal, land steadily loses value mostly from taxes. Whatever risk there might be of land gaining in value, is equally countered by land also losing value.
Land can be VERY expensive to hold, because property taxes can eat up most of its value. Unless land is generating an income greater than the property taxes, then you will lose money just by holding it. Even if the land maintains superficial value by just keeping up with inflation, then you lose even more money when you sell the land if there has been any inflation and have to pay state income taxes and federal income taxes on the inflation of it.
Of course, land is even worse if there is a structure on it which needs to be insured, repaired, and maintained. Land with structures on it have much higher taxes and are much more expensive to hold and must be rented out which require additional time and money. Regardless if there is a structure or not, insurance has to be bought in order to lessen the risk of lawsuits if someone is hurt on the property.
Land is heavily taxed by property taxes, state income taxes, federal income taxes, and requires additional time and money to hold, even if you are lucky enough to not go “under water”.
Furthermore land is not divisible, not very easy to transfer, cannot be taken out of the country, cannot be hidden, land can be very unmarketable and unconvertible, and land cannot go untaxed nor unregulated.
If you choose land as an investment, then youd better be smarter and more right than everyone else who has more experience in real estate than you do.
Originally Posted by Susanann
Ha Ha! The Euro (and Greece, Spain, Portugal, Italy, Ireland, etc) is also collapsing! Those countries have a ton of debt.
Yeah, I know, the future value of the doomed Euro is absolutely dismal and depressing.
Oh yeah, I also forgot that land, and use of the land, can be “effectively” destroyed by drought, flooding, pollution, endangered species, use restrictions, eminent domain, and war.
You claimed that each deficit was “multi-trillion”. Perhaps you forgot what you posted:
No I didnt. …but YOU just said it.
STOP trying to mislead, STOP misquoting, they are violations, and STOP trying to go off topic and derail the discussion.
DO start paying attention, the combined deficits for BOTH is multi-TRILLIONS!
$1.4 trillion PLUS $790 billion = $2. 190 TRILLION
$2.2 Trillion dollar deficits are multi-trillion deficits
This is your last warning.
So, is Susanann denying that she wrote post 70?
I like the rationale for investing in gold but if things are gonna be as bad as the gold buyers say I think I’ll invest in lead pipes instead, seems like they’d be a more useful investment in this apocalyptic scenario they’re all salivating over.
Nitpick: there are 12 Troy ounces in a Troy pound. So a pound of gold would have cost around $3600 and could now be sold for $19,200.
Susanann, stop junior moderating. If you think someone is violating the rules, just report his or her posts. In any case Really Not All That Bright did not misquote you and his summary of your posts was accurate. Let’s get this back on topic, please.
$1.4 trillion PLUS $790 billion = $2. 190 TRILLION
$2.2 Trillion dollar deficits are multi-trillion deficits
What is it about $2.2 trillion dollars that do you not understand?
Originally Posted by Susanann
$1.4 trillion PLUS $790 billion = $2. 190 TRILLION
$2.2 Trillion dollar deficits are multi-trillion deficits
**YOU **made the statement right hear with the word "EACH". It is YOUR statement that talks about EACH deficit being multi-trillion.
Do you know how to do a find on “each”?
I never once said “each”.
YOU said “each”.
I clearly said multi-trillion for “BOTH”.
Go back and read it again.
I have to say, it is very ambiguously worded, and the way you emphasize “both” and “and” does make it sound like you’re emphasizing the fact the multi-trillion dollar deficits exist in each, otherwise why emphasize those two words? At any rate, you’ve cleared up the ambiguity by now, but I can’t fault readers for coming to, what I think at least, is the more logical reading of your statement.
You posted “both” and also the word “and”. This implies that each of the items being compared both possess the same property.
Example: The temperature is high in BOTH Mississippi AND Louisiana.
or
Example: The balance is over $100 dollars in BOTH the checking AND the savings account.
Most readers should come to this conclusion. Admit you were wrong and go on.
Frankly, I think it is pretty clear that $1.4 trillion PLUS $790 billion = $2. 190 TRILLION = multi-trillions
This is not where the problem crept in. The problem is that you worded your post in such a way that it implied the U.S. had an annual budget deficit of more than $2 trillion and an annual trade deficit of more than $2 billion. (It’s not accurate to describe a deficit of $1.4 trillion as “multi-trillions.”) Since that is evidently not what you meant and certainly not what you said, it’s time for you and your opponents to stop arguing past each other.
Yes, if you bought at the very bottom of the market and sold at (what I perceive to be) the very top of the market, it is a good investment.
But then you could have said the same of tulip bulbs. Or real estate.
The question is whether it is a good idea to buy gold now.
For what it’s worth, both my annual income and the US budget deficit are over a trillion dollars.
This. Only I think it is more likely that ammo would become the new currency. Who would hand over a pile of ammo for some shiny rocks in such circumstances?
Anyway, I don’t hate gold or think people are stupid for buying it. I wish I’d bought some 5 years ago. I think it is in a bubble now though and has a long way to fall. That’s just me. Anyone who disagrees can buy some gold.
And, if one is to follow the example of the billionaire hedge-fund investors, the way to play commodities is to invest in the companies that produce them, not the commodities themselves. So don’t buy copper, invest in copper mining companies. Don’t buy oil, but shares of oil companies. In the end it is all a gamble, unless you’re in Congress and can legally engage in insider trading.
Can you give me some actual names of these billionaire hedg-fund investors and what funds they have their money in(as opposed to the physical possession route)?
Can you give me your source of information that members of Congress are legally engaged in insider trading. How can you legally do something that is illegal?