okay, so i have read this whole thread. ( in one sitting) i actually consider myself a fairly intelligent ( albiet intoxicated ) person.
i wish i understood half of what i just read. i wish i really understood the stock market , the price of gold per oz., i just dont, its not something i can wrap my head around for some reason. which is why i will always be poor.
is the there a "dummies guide to playing the market" book out there?
and if so, would it really help?
Peace, Love.
"To question your government is not unpatriotic --
to not question your government is unpatriotic."
-- Sen. Chuck Hagel
If I buy gold... how do I spend it to buy a six pack or beer and a pack of Marlboros? Do i break off a chunk of the gold brick and hand it to the guy at the 7-11?
right now?
you don't.
not in a conventional sense.
If everything REALLY goes to shit?
You probably use silver "rounds".
Gold is for BIG purchases.
Honestly, i'm not holding physical metal to buy things with now. I'm holding it because i'm trying to preserve wealth, and if things do REALLY go to shit, the banks won't be giving you any dollars back OR your gold certificates or your gold ETF or what have you ... physicaly holding it in your home is the only way to be secure.
Even then, the government still claims it has the authority to deprive you of it at gunpoint, though.
:(
If I was to smile and I held out my hand
If I opened it now would you not understand?
okay, so i have read this whole thread. ( in one sitting) i actually consider myself a fairly intelligent ( albiet intoxicated ) person.
i wish i understood half of what i just read. i wish i really understood the stock market , the price of gold per oz., i just dont, its not something i can wrap my head around for some reason. which is why i will always be poor.
is the there a "dummies guide to playing the market" book out there?
and if so, would it really help?
I'm just starting to get drunk myself.
Ezra Brooks, fine sipping bourbon. Woo hoo!
Honestly man, and not to be a dick, if you can't understand what is in this thread, you may want to wait a while to start "trading" ... ESPECIALY in THIS market ... it is C-R-A-Z-Y right now. The swings are nuts.
However, you may want to check out something like Reminiscences of a Stock Operator, if only because it is a classic and HIGHLY readable. Great story.
Try some of the "For Dummies" books. There are a few of them, actualy.
Regarding gold,
all you need to really understand is that paper dollars are a commodity that can be created out of thin air, and therefore their value in relationship to other LIMITED assets is dependend on how fast our government (vis a vis the Federal Reserve) is printing more of these paper dollars.
In other words, for example, if there are only 100 dollars in the world and 10 ounces of gold, and every one agrees that therefore 1 of those 10 ounces of gold is worth 10 dollars, if someone had ALL of the 100 dollars, they could buy ALL of the 10 ounces of gold. (did i do that math right? i suck at math, funny as it is).
10 ounces of gold X $10 a piece = $100 ... all the money.
NOW.
WHAT IF SOMEONE PRINTED ANOTHER $100 ?
What happens to the price of gold?
We agreed that, given there were only 10 ounces of gold, and there were $100 chasing that gold, each ounce was worth $10.
But, NOW there are TWO hundred dollars.
Well, NOW the price of gold is TWENTY dollars an ounce.
See?
The AMOUNT of money DOUBLED, but the AMOUNT of gold is still THE SAME.
Therefore, all things otherwise being equal, the PRICE of gold must DOUBLE.
Otherwise there is an imbalance in the market.
It is only confusing because you are not used to even thinking of money as being a "commodity" or of thinking that the SUPPLY of money could\would\does and IS increasing ... when the economy gets shitty, the Federal Reserve cuts the interest rate and that means banks borrow a shit ton more money ... basically a whole bunch of NEW money gets created out of thin air ... thus INCREASING the SUPPLY of paper dollars ...
but there is still the same amount of gold ...
except the result actualy gets compounded in reality, because people KNOW the Fed is increasing the money supply and they go running and screaming for gold, becaues the SMART people don't want to lose the value of their "dollar" so they trade them for GOLD which is and always will be limited in number ... and if you catch the train early, you have a commodity in your possession that will continue to be worth more in relation to the supply of money.
Of course, when the supply of money starts to DECREASE, so to does the "value" of gold.
Got it?
If I was to smile and I held out my hand
If I opened it now would you not understand?
Comments
i wish i understood half of what i just read. i wish i really understood the stock market , the price of gold per oz., i just dont, its not something i can wrap my head around for some reason. which is why i will always be poor.
is the there a "dummies guide to playing the market" book out there?
and if so, would it really help?
"To question your government is not unpatriotic --
to not question your government is unpatriotic."
-- Sen. Chuck Hagel
right now?
you don't.
not in a conventional sense.
If everything REALLY goes to shit?
You probably use silver "rounds".
Gold is for BIG purchases.
Honestly, i'm not holding physical metal to buy things with now. I'm holding it because i'm trying to preserve wealth, and if things do REALLY go to shit, the banks won't be giving you any dollars back OR your gold certificates or your gold ETF or what have you ... physicaly holding it in your home is the only way to be secure.
Even then, the government still claims it has the authority to deprive you of it at gunpoint, though.
:(
If I opened it now would you not understand?
I'm just starting to get drunk myself.
Ezra Brooks, fine sipping bourbon. Woo hoo!
Honestly man, and not to be a dick, if you can't understand what is in this thread, you may want to wait a while to start "trading" ... ESPECIALY in THIS market ... it is C-R-A-Z-Y right now. The swings are nuts.
However, you may want to check out something like Reminiscences of a Stock Operator, if only because it is a classic and HIGHLY readable. Great story.
Try some of the "For Dummies" books. There are a few of them, actualy.
Regarding gold,
all you need to really understand is that paper dollars are a commodity that can be created out of thin air, and therefore their value in relationship to other LIMITED assets is dependend on how fast our government (vis a vis the Federal Reserve) is printing more of these paper dollars.
In other words, for example, if there are only 100 dollars in the world and 10 ounces of gold, and every one agrees that therefore 1 of those 10 ounces of gold is worth 10 dollars, if someone had ALL of the 100 dollars, they could buy ALL of the 10 ounces of gold. (did i do that math right? i suck at math, funny as it is).
10 ounces of gold X $10 a piece = $100 ... all the money.
NOW.
WHAT IF SOMEONE PRINTED ANOTHER $100 ?
What happens to the price of gold?
We agreed that, given there were only 10 ounces of gold, and there were $100 chasing that gold, each ounce was worth $10.
But, NOW there are TWO hundred dollars.
Well, NOW the price of gold is TWENTY dollars an ounce.
See?
The AMOUNT of money DOUBLED, but the AMOUNT of gold is still THE SAME.
Therefore, all things otherwise being equal, the PRICE of gold must DOUBLE.
Otherwise there is an imbalance in the market.
It is only confusing because you are not used to even thinking of money as being a "commodity" or of thinking that the SUPPLY of money could\would\does and IS increasing ... when the economy gets shitty, the Federal Reserve cuts the interest rate and that means banks borrow a shit ton more money ... basically a whole bunch of NEW money gets created out of thin air ... thus INCREASING the SUPPLY of paper dollars ...
but there is still the same amount of gold ...
except the result actualy gets compounded in reality, because people KNOW the Fed is increasing the money supply and they go running and screaming for gold, becaues the SMART people don't want to lose the value of their "dollar" so they trade them for GOLD which is and always will be limited in number ... and if you catch the train early, you have a commodity in your possession that will continue to be worth more in relation to the supply of money.
Of course, when the supply of money starts to DECREASE, so to does the "value" of gold.
Got it?
If I opened it now would you not understand?