GOLDBUG: A buying opportunity

Like the guy on the TV says: “Wealth Protection”. Gold has never been worth zero. Unlike the Zimbabwe dollar, the German pre-WW2 Mark, and countless other fiat currency (i.e., printing press printed paper that is only “money” because guys with guns say it is). Even the most wildly bullish tout like Kudlow, and “the every feeling is expressed” Orman, wouldn’t argue with 5 to 10% in gold. Due to the “interesting” numbers in the CFTC, the number of contracts outstanding, and the various derivatives around commodities, I’d suggest that bullion coins from a low cost / low overhead reputable dealer is the best way to have that investment. Call it Gooferment Insurance. I’d further suggest that you want “good delivery” where they put the coins in your hot little hands. Then you can put them in an interesting place (e.g., curtain rods; taped to the hidden in the wall side of your medicine chest, or (my personal favorite) inside some furniture that ain’t easy to move like a grandfather’s clock. (No fire risk. Gold doesn’t burn. Like paper money.) I don’t recommend burial because you, or your heirs, will forget where you stashed them. (And, for my fellow tin foil hats, the gooferment has ground penetrating radar.) :-) And, please, don’t even consider “numismatic coins” from ANYONE. (Overpriced misgraded and in some cases fakes and frauds. And, the Gooferment will seize them as quick as anything else if they’re desperate enough.) Remember FDR broke into bank vaults during the “bank holiday” for folks’ gold stashes.

imho ymmv faiwwypfi tanstafl!

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From: APMEX News <news@apmex.com>
Date: July 1, 2010 6:28:53 PM EDT
To: @reinke.cc
Subject: APMEX – Gold Now Below $1,200 Per Ounce

Dear ferdinand,

TAKE ADVANTAGE – GOLD NOW BELOW $1,200 PER OUNCE!

APMEX has the largest selection of bullion products anywhere, and our customers are taking full advantage of this recent dip in prices. Join thousands of APMEX customers who have already taken advantage of this price reduction before our most popular inventory sells out. Three of the fastest moving products today at APMEX.com are:

2010 Gold American Eagles

2010 Silver American Eagles

2010 Gold Maple Leafs

Take advantage of the recent pull back in prices now before the next run in pricing occurs.

As you might expect, we have seen a huge increase in order volume today as a result of this consolidation of price and inventory is moving very quickly. Don’t miss out on this great opportunity to save money at APMEX today.

http://www.apmex.com/

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2 Responses to GOLDBUG: A buying opportunity

  1. G McDonald says:

    Nice to see you taking a position on gold.
    I must take exception with your comment regarding numismatic coins, however.
    You say they are “overpriced” but, compared to what? Bullion? They are different investments and, as you refer to them, the “Tin foil hats” may not see the wisdom of rare coins. For, while it is true that FDR confiscated gold – he intentionally left “rare” coins off the list. They are, in fact, the only coins that are safe from “gooferment” theft! As for grading, having a neutral (and credentialed) third party verify that the coin in question actually is what it appears to be would seem prudent given our national lemming-like penchant for throwing money at the Bernie Madoff’s of the world.
    Hey! Throw a burger on the “barbie” and enjoy your weekend.

    • reinkefj says:

      “Exception noted” as that judge in “A Few Good Men” slaps down a hot Demi Moore in a sailor’s suit. LOL!

      I say “overpriced” in comparison to the normal market.

      Unfortunately the whole gold market place has been flooded with fraudsters. Bullion coins offered for muultiples of the bullion price. Numismatics offered for multiples of the fair market value. And some firms take your money and deliver paper if anything at all. Really a gold IRA? So, I have found that if someone is advertising “numismatic gold coins that can’t be seized by the government”, then I think FRAUD.

      While FDR excluded numismatics in his seizure, that doens’t mean that they can’t be seized the next time around. You expect justice in a gooferment court when you are injured by the gooferment? I’m sure that FDR skipping numismatics in his theft was politics. One would imagine that gold coin collectors would be well off and have the resources to make his life miserable and possibly throw off or prevent his theft completely. (No evidence; just a suspicion). Given how broke the gooferment is this time around and given that they look like “crack whores” when they see money, I’m not optimistic that your numismatics will be safe form them.

      If you look on the blog, I ranted that the IRAs and 401ks might not be safe from gooferment theft. All they have to do is declare that the market is too “risky” for your retirement savings and that if they don’t protect you, then you’ll be indigent and a ward of the gooferment in your old age. So they are going to keep your IRA and 401K safe for you. In exchange, they’re going to give you an “enhanced social security benefit”. That’s 13T$ that they can spend. I’m very afraid.

      WRT “grading services”, I’d be concerned about the independence and honesty. One man’s “fine” is another’s “junk”.

      Thanks for the comment. I’m not a big fan of the Fourth, which you can read about on tomorrow’s blog post. But I will read (again) the DoI!

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