Speaking of investments. Any of you doing this?

That would be the normal ebb and flow of the market. I'm referring to a drop in dollar value would not make gold automatically more valuable. In fact the reverse might happen.

Gold is merely a commodity. It trades the same as oil.

 

Mexican Coca-Cola in the eight-and-half-ounce, green bottles.

 

Because of the growing economies in China and India, I think gold is a decent investment. Very cautious investors might put 10-20% of their portfolios in gold.

The current runoff in the stock market is largely due to the U.S. mortgage and credit problems; scarceness of commodities such as oil, cement and steel; and fear.

If you're a contrarian, this might not be a bad time to start to re-invest. Pick your spots carefully, boys and girls.

 

If you want to buy a selection of gold-mining stocks, I wouldn't dissuade you. If you want to buy the commodity, I don't believe that's been as good when you speak of long-term investments.

 

Well, you better get that gold in your own hands. Not some certificate that says you own it, I'm talking about the actual gold coins or gold bars. 'Cause when things go to hell, those certificates won't do you any good at all.

[/worstcasescenario]

 

Lesson learned as a result of this thread: there are no good Google images of chickens running around with their heads cut off.

 

I'm not Warren Buffet or anything, but gold would scare me just a little. It's at an all-time high right now — something like $800-plus an ounce, which is almost triple what it was a couple years ago. Assuming the world doesn't go all Mad Max, and things settle down eventually, it stands to reason gold would drop some too. Even if it dips to $600 an ounce, you're still taking a bath on it.
To me, gold seems like a panic commodity: the people who get it, get it because it's safer than currency.
Now, if you're getting it to trade for valuable canned goods or a bicycle in five years, by all means go for it. If you're getting it to sell in five years, be wary.

 

Maybe a useless point, but if things go all "Mad Max," gold will have zero value. Gold is only valuable within the contexts of civilizations, not complete anarchy. Guns and ammo? Those will be priceless.

 

Real estate

Now is the time to invest in real estate.

 

Even with the panic, some stocks are still safe. Oil companies for example. Or at least I would think so.

I wouldn't buy gold though. The price is high, but the demand won't be there if things go bad.

Or like on the Wire, buy homes and wait for the white people to move in and sell them at a huge profit.

On a precious metals side note: my town is currently having a crime wave as thiefs are busting into the crawl spaces under old homes and stealing the copper pipe.

 

Gold would still have some value. Not as much as food, water, gasoline, etc., the staples of life, but it's pretty universally recognized as a precious commodity. Has been since ancient times. Even in a post-apocalyptic scenario, I could see it being used as a default currency.

My town is having the same problem. We did a story on a lady who's trying to fix up an old house, but has had it ruined because people keep breaking in and ripping the wiring out of the walls. Maybe copper is the way to go, as far as an investment?

 

Yes...I'll take investment advice from a guy who believes a democratic candidate is a communist in sheep's clothing.