Re: The Price of Gold: Does It Matter?
Posted: Sun Oct 06, 2019 10:04 pm
From Swiss America.....
"Warren Buffett is not a fan of gold....Let's see what gold has done since 2001 when I gave a renewed long-term 'buy' signal...Gold plunged to about $250 by year 2001. At that time, no one even wanted to hear the word 'gold.' Bearish sentiment was at extreme highs. As you can see in this chart, gold far outperformed the S&P 500 since 2001. Buffett uses arbitrary dates, similar to many stock analysts who want to make a point against gold. They pick the dates that give them the results they want....Some speculators like more excitement in their trades, such as cryptocurrencies, which go up or down 20%-30% in 24 hours. In exchange for your money you get a computer entry, nothing tangible. Eventually, these cryptos will be regulated out of existence. The central banks can't tolerate private entities overtaking its role of creating money out of thin air. I prefer something the central banks of the world buy many tons of: gold....Gold will become the most desirable asset when the central banks restart their QE (quantitative easing) programs in order to avoid devastating recessions. The purchasing power of money will be eroded significantly....The role of corrections in gold are to 'shake the tree,' i.e. to separate weak holders from their holdings....I always look for investments that have something of value. It let's me sleep at night."
65392 Franklin D. Roosevelt made it illegal for any person in the United States to own gold. Gold certificates were withdrawn from circulation along with all gold coins and gold bullion as required by the Gold Reserve Act of 1934. Gold certificates were available until December 28, 1933, when they were forever removed from circulation. Section 2 of the act transferred ownership of all monetary gold in the United States to the US Treasury. Monetary gold included all coins and bullion held by individuals and institutions, including the Federal Reserve. In return, individuals and institutions received currency at a rate of $35 per ounce of gold. This rate reduced the gold value of the dollar to 59 percent of the value set by the Gold Act of 1900, which equaled $20.67 per ounce. That rate had prevailed until the spring of 1933, when the Roosevelt administration began its campaign to devalue the dollar.
Sections 5 and 6 of the act prohibited the Treasury and financial institutions from redeeming dollars for gold, which was the design of gold certificates, inverting the system that had prevailed in the United States since the nineteenth century. Under the old system, the government converted paper currency to gold coins, whenever citizens desired to do so. Under the Gold Act, the government converted gold into dollars, regardless of whether citizens wanted to engage in the exchange. In the United States, from 1933 to 1974 it was illegal for U.S. citizens to own gold in the form of gold bullion, without a special license. Gold was available in coin and ingot outside the US and just across the border in Mexico and Canada but restricted and controlled under stiff penalty in the US. The ban was not lifted until legislation was signed in 1974 by President Gerald Ford. On January 1, 1975, gold ownership was made legal and gold can now be freely held in the U. S. without any licensing or restrictions of any kind.
This form of legislative piracy was enforced for 40 years. Dental companies, jewelers, and electronic firms had to apply to the federal reserve for the issuance of gold. People could own gold jewelry so long as it was under 15 ounces. The Federal government actually issues gold coins now - $50 US (1 oz), $25 US (1/2 oz), $10 US (1/4 oz) and $5 US (1/10 oz). Technically if another gold act were to occur, the government would only be required to compensate owners the face value of the coin. A fifty dollar gold piece that now sells for more than $1500 could now be taken by the Treasury and only payout would be $50.00.
65397
"Warren Buffett is not a fan of gold....Let's see what gold has done since 2001 when I gave a renewed long-term 'buy' signal...Gold plunged to about $250 by year 2001. At that time, no one even wanted to hear the word 'gold.' Bearish sentiment was at extreme highs. As you can see in this chart, gold far outperformed the S&P 500 since 2001. Buffett uses arbitrary dates, similar to many stock analysts who want to make a point against gold. They pick the dates that give them the results they want....Some speculators like more excitement in their trades, such as cryptocurrencies, which go up or down 20%-30% in 24 hours. In exchange for your money you get a computer entry, nothing tangible. Eventually, these cryptos will be regulated out of existence. The central banks can't tolerate private entities overtaking its role of creating money out of thin air. I prefer something the central banks of the world buy many tons of: gold....Gold will become the most desirable asset when the central banks restart their QE (quantitative easing) programs in order to avoid devastating recessions. The purchasing power of money will be eroded significantly....The role of corrections in gold are to 'shake the tree,' i.e. to separate weak holders from their holdings....I always look for investments that have something of value. It let's me sleep at night."
65392 Franklin D. Roosevelt made it illegal for any person in the United States to own gold. Gold certificates were withdrawn from circulation along with all gold coins and gold bullion as required by the Gold Reserve Act of 1934. Gold certificates were available until December 28, 1933, when they were forever removed from circulation. Section 2 of the act transferred ownership of all monetary gold in the United States to the US Treasury. Monetary gold included all coins and bullion held by individuals and institutions, including the Federal Reserve. In return, individuals and institutions received currency at a rate of $35 per ounce of gold. This rate reduced the gold value of the dollar to 59 percent of the value set by the Gold Act of 1900, which equaled $20.67 per ounce. That rate had prevailed until the spring of 1933, when the Roosevelt administration began its campaign to devalue the dollar.
Sections 5 and 6 of the act prohibited the Treasury and financial institutions from redeeming dollars for gold, which was the design of gold certificates, inverting the system that had prevailed in the United States since the nineteenth century. Under the old system, the government converted paper currency to gold coins, whenever citizens desired to do so. Under the Gold Act, the government converted gold into dollars, regardless of whether citizens wanted to engage in the exchange. In the United States, from 1933 to 1974 it was illegal for U.S. citizens to own gold in the form of gold bullion, without a special license. Gold was available in coin and ingot outside the US and just across the border in Mexico and Canada but restricted and controlled under stiff penalty in the US. The ban was not lifted until legislation was signed in 1974 by President Gerald Ford. On January 1, 1975, gold ownership was made legal and gold can now be freely held in the U. S. without any licensing or restrictions of any kind.
This form of legislative piracy was enforced for 40 years. Dental companies, jewelers, and electronic firms had to apply to the federal reserve for the issuance of gold. People could own gold jewelry so long as it was under 15 ounces. The Federal government actually issues gold coins now - $50 US (1 oz), $25 US (1/2 oz), $10 US (1/4 oz) and $5 US (1/10 oz). Technically if another gold act were to occur, the government would only be required to compensate owners the face value of the coin. A fifty dollar gold piece that now sells for more than $1500 could now be taken by the Treasury and only payout would be $50.00.
65397