Let's say I had $100,000 in 1964 (in 1964 dollars). I could have bought 83,334 ounces of silver, 5 houses priced at the national median, and 12,500 shares of IBM stock. In 2013, my silver would be worth about $2 million; my houses would be worth about $950,000; my IBM stock would be worth $2.5 million. If I had invested in a 1 year CD in 1964 and rolled it over each year for the average CD rate, without shopping for the best one each year--even with the low rates in the last 10 years--I'd have $1.7 million (since the CD would be taxed annually, this doesn't accurately reflect the return, but my point is to illustrate that many assets could have been bought and held and equalled silver's performance).
Gold. GOLD!!!!! Gooooollllllllllddddddd!!!!!!!!
- Thread starter ChesusRice
- Start date
Economic activity has no relation to the supply or value of gold. The purpose of currency is just to facilitate economic activity, not to represent some fixed value, since value isn't fixed. When I grow more wheat or produce energy with a wind turbine, there actually is more value than there was before I did it.
ChesusRice
Well-Known Member
So what happens to the price of gold if a giant find is discovered in say Canada
heckler73
Well-Known Member
In the past, that would have had an effect on the Money Supply.
Now, it would probably do nothing. Mainly because it would still have to be mined and processed, and it is highly unlikely any large strikes are left to find. These days, if a mine is processing 3gpt, they are considered "productive"... and those "pockets" are usually small overall.
Here's one of my favourite sites for tracking explorer's drill maps:
http://www.corebox.net/
It'll give you an idea of how "big" these finds are in general.
What are you talking about? I own actual PHYSICAL silver in the form of US Silver Eagles, they easily get $40 each on the open market, Heck the exchange will offer me $10 over spot for them right this minute.
83,000 X $40 = $3,320,000
Did you forget about the taxes on the IBM stock? Lets say 15% Reducing your gain by $375,000
Percent taxation on US Silver eagles = 0%
When you really look at it, silver was one of the best investments you could have made. Imagine if you had sold when it was at $50 in 1979, then bought back in 1981 then resold it last year. $21.6 million and change.
Gold would have been even better.
I thought you were in Finance? Anyone in Finance never forgets about the tax obligation of things.
Canada is home to more mining companies than any other. Fully half of the worlds largest gold mining companies are in Canada. By comparison the USA has 1 miner at the #3 spot, russia has one, S Africa has 2 and Australia has 1. Canada occupies the top 2 spots as well as # 4, # 7 and # 9
They won't find any massive finds, all the easily found gold has already been found since man has been looking for it non stop for 10,000 years.
Thats a good point to note for everyone. Inflation is purposely used to cause the dollar to NOT be a store of value. They want you to get rid of them as fast as you can becasue the government is the biggest debtor of all and deflation would hurt government very very badly. They will do whatever it takes to stave off deflation, when money is in the system (gold and silver ) as legal tender, then there tends to be deflation as people will horde those things which tend to rise in value over time, although gold historically was extremely stable over time.
By deincentivising the hording of currency through a constant devaluation, government is able to borrow large amounts and pay the interest in ever devaluing dollars which makes it much much easier to deal with.
Of course most people with fixed incomes ( disabled, elderly, poor) get fucked in the ass because they live on fixed incomes mostly and do not get increases in their payments to keep up with the real rate of inflation.
Once again your a fucking moron, did you notice the minimum wage i said was in the year 1938? Thats 25 years AFTER the period in which we are talking about.
Fucking MORON, you don't have much more than one brain cell swimming around there do you?
Or do you suppose the avg min wage didn't budge in 25 years?But afterwards moved up nearly every year????
Not doing much thinking while your brain skips right over the pertinent details are ya?
Idiot!
Inability to read, yep that's you alright.
Edit: I see Bucky liked your post, he doesn't read worth a shit either.
Cd's HIGHEST rates of right now are 1.25%, lower than official inflation
Stocks? Depends if you get the right one, natural resource stocks are currently in the dumps and represent a buying opportunity.
Bonds? Well I suppose the average Joe will want to be able to actually get his money in less than a decade. The best rate you can get on a US 5 year is .7% way below "official" inflation
Dividends? You can't always count on them, plus you have to be in the right company, not all companies issue regular dividends.
Physical assets? commodities and highly collectable things might do well.
Stocks? Yep pretty much the only place you can get a return right now, looking awfully bubbly though, companies looking bleak, missing estimates left and right.
Plus the tax issues on most of those except of course the treasuries.
The Fed doesn't need permission to do anything it wants, the Fed cannot be overruled by any agency of government. The Fed is not under the control of any government agency. This is supposedly to keep politics out of the economy. The Fed is not a government entity. the Fed is a private corporation with the monopoly privilege to provide credit to the USA in the form of Dollars.
Thats why it says Federal Reserve note on the bills instead of US Note.
Please share the internet link of the buyer offering $10 over spot price for said coins. Thanks.
You aren't paying tax on your silver eagles? Why do you owe no tax? Please explain. Thanks.
Of course, your scenario involving selling in 1979 is silly. Sell anything at any substantially overinflated price and you'll enjoy comparable gains. Totally irrelevant to the case you're trying to make.
heckler73
Well-Known Member
Touche...
Okay, you did get me on that.
So the score is what now? 1 for you, about a dozen for me.
Oh snap, there goes my shutout.
BTW, the first minimum wage law was passed in Oregon in 1913.
It worked out to ~17cts/hr
http://portland.daveknows.org/2011/02/17/february-17-1913-oregon-enacts-first-minimum-wage-law/
And you are still an ignorant twat (and possibly an inbred HICK).
I'm guessing you are talking vintage year eagles at the $40? If you are talking 2012/2013, I'll be happy to sell at $40 if anyone here is willing to pay it.
Haha... When I sell my silver, it is always for a loss - that's my story
Lol 12 to 1? more like 223 for me none for you.
But yeah, I love you too.
How goes the life of a sock puppet anyway?
heckler73
Well-Known Member
Sock puppet?
Considering YOU are the one trying to deceive people, I find that remark ironic.
Then again, you are a Hippie-Crack addled hick... Go have a squat and spin on some corncobs, Jim-Bob Bobby Bob.
Gold Bullion - IRS 1099 B Form
Private gold bullion, 1099 Form not required, any quantity:
- US Gold Eagle Coins 1 oz - 1/2 oz - 1/4 oz - 1/10 oz
- US Gold Buffalo Coins 1 oz
- Austrian Gold Philharmonics 1 oz - 1/2 oz - 1/4 oz - 1/10 oz
- Canadian Gold Maples 25 oz +
- South African Krugerrands 25 oz +
- Mexican Onza Gold Coins 25 oz +
- Chinese Gold Pandas 25 oz +
- Etc, etc.
- One kilo in total (32.15 troy oz ) or more per transaction
--------------------
Silver Bullion - IRS 1099 B Form
Private silver bullion, 1099 Form not required, any quantity:
- US Silver Eagle Coins
- Canadian Maple Leaf Silver Coins
- Austrian Philharmonic Silver Coins
- Mexican Libertad Silver Coins
- Chinese Panda Silver Coins
- Etc. etc.
- 1000 oz or more per transaction
- $1000 face value bag or more of 90% silver coins
You know what a 1099b is right?
Exchanges don't sell over the internet. Check E-Bay, I'm sure you'll see them going for over $40 each.
That isn't even half assed trolling. Try harder next time, you're doing it wrong.Sock puppet?
Considering YOU are the one trying to deceive people, I find that remark ironic.
Then again, you are a Hippie-Crack addled hick... Go have a squat and spin on some corncobs, Jim-Bob Bobby Bob.
How am I trying to deceive people? I must be making up a bunch of lies, which will make it very easy for you to put up good sources of info that prove me wrong.
Or you can just keep giving it the good old college boy try to keep talking smack and getting nowhere. Up to you, you havent gotten under my skin yet, I have a good tolerance of morons and idiots considering how much Cheezus posts around here.
Vintage? They don't sell for any more than the newest ones.
2013 ones are the same price as the 1990 ones.
Try E-Bay, easy to get $40+ for each one.
Say what? Aren't social security payments indexed to inflation? Aren't disability payments indexed to inflation?