Author Topic: Converting paper money to gold (Read 2667 times)

JewishAmericanPatriot · « **on:** January 27, 2009, 08:05:06 PM »

OK, I took my money out of the bank accounts I had it in (I just left in enough to keep one account open)...now I want to convert it to gold.

Has anyone done this before? My husband has some experience in gold investing, but I want to invest a lot more in it than he ever did.

I'm told that pre-1933 gold is best, since its regarded as collector's coins and therefore cannot be confiscated, should Obama ever decided to become fully like FDR and order everyone to turn in their gold.

Anyone have any experience in this? I'm looking for all the advice I can get before I shell out the bucks for gold coins.

Zionist Revolutionary · « **Reply #1 on:** January 27, 2009, 08:14:50 PM »

I've been thinking of investing in gold, but I have no idea where to start. On Conservative talk radio and websites I see ads about gold, and how its a great investment etc and that I should invest in gold through someones program.

Rubystars · « **Reply #2 on:** January 27, 2009, 08:15:31 PM »

I don't think gold is a good investment at all.

Zionist Revolutionary · « **Reply #3 on:** January 27, 2009, 08:24:01 PM »

Quote from: Rubystars on January 27, 2009, 08:15:31 PM

I don't think gold is a good investment at all.

Care to elaborate? Throughout human history, gold has always had value.

JewishAmericanPatriot · « **Reply #4 on:** January 27, 2009, 08:40:05 PM »

Transferring paper money to gold acts as a protection against the possibility that the paper money may lose all its value. Gold never loses its value; throughout history it has been valuable.

I plan to convert all my paper money to gold and then wait out the coming depression. Even if its value goes down in the interim (which I doubt), that doesn't mean anything unless I sell it.

I plan to hold onto it as gold so that I can leave it to my children....it will also be safe from a nursing home if I end up needing one (to qualify for Medicaid/nursing home care, you need to give them all your countable assets...and gold coins sitting in someone's safe is not a countable asset, only money in the bank is). So by putting all the money into non-countable gold assets NOW, I preserve my childrens' inheritance at the same time.

briann · « **Reply #5 on:** January 27, 2009, 08:48:06 PM »

Quote from: JewishAmericanPatriot on January 27, 2009, 08:05:06 PM

OK, I took my money out of the bank accounts I had it in (I just left in enough to keep one account open)...now I want to convert it to gold.

Has anyone done this before? My husband has some experience in gold investing, but I want to invest a lot more in it than he ever did.

I'm told that pre-1933 gold is best, since its regarded as collector's coins and therefore cannot be confiscated, should Obama ever decided to become fully like FDR and order everyone to turn in their gold.

Anyone have any experience in this? I'm looking for all the advice I can get before I shell out the bucks for gold coins.

First question... do you think you might need the money in the short term?

Although I think Obama is a dumded down version of FDR... he will NEVER call for a massive order for people to turn in their gold. The situation in the early 30s was different... since we WERE on the gold standard... And Hoover and FDR were desparately trying to increase the money supply... to halt the collapsing of the banks... before we got off it altogether. There is just NO scenarios that Obama would do this.

HOWEVER I LOVE the older gold bullion... (I love anything from that era)

As far as gold being a good or bad investment... that all depends upon your needs. Do you need any $ for unforseen situations? Is this retirement money? are you looking to speculate? Do you just want to damage Obama as much as possible? Do you just care about safety and nothing else?? give me and idea.

cjd · « **Reply #6 on:** January 27, 2009, 08:49:50 PM »

Your getting into the gold game very late gold prices are quite high. If things go very bad you may be better off in gold but if the economy stays as it is or improves people may sell of their gold quite quickly causing the prices to drop over night. I think having enough cash out of the banks to last a month or so might be a good idea but I still think that the best place for your money is a FDIC bank. Buy some gold if it will make you feel safe but don't put all your eggs in one basket. If the banking system totally collapses the dollar and even gold will not be shock proof. If I were expecting the worst stock up on food clothing and anything else I would need. Things like that would be worth far more than gold or cash money should the worst happen.

Rubystars · « **Reply #7 on:** January 27, 2009, 09:25:10 PM »

On the radio today Dave Ramsey said that gold has a 70 year track record of about 4%, which is about the same as inflation.

http://www.daveramsey.com/etc/askdave/index.cfm?event=dspAskDave&intContentItemId=6240

QUESTION: A listener says a lot of people are asking about gold investments. Is this a good idea?

ANSWER: It’s a bad idea to invest in gold. Everyone’s talking about it right now because gold is really high.

In the book, Stocks for the Long Run, Jeremy Segall has a graph that shows what would have happened to a single dollar invested in gold, bonds and stocks since 1801.

One dollar invested in bonds in 1801 would yield $13,975 today.
One dollar invested in stocks in 1801 would be worth $8.8 million today.
One dollar invested in gold in 1801 would be worth $14 today.

New Yorker · « **Reply #8 on:** January 27, 2009, 10:07:23 PM »

I've been buying silver buillion from this outfit. It's not an endorsement, just a matter of fact.

http://bullion.nwtmint.com/

And these guys always advertise on the Michael Savage show. http://www.swissamerica.com/index.php

Cmon, we've got a room full of Jews here and nobody knows anything about buying gold? We're not living up to the stereotype!

~Hanna~ · « **Reply #9 on:** January 27, 2009, 10:17:19 PM »

Hey, that's a good website!

Here is what it says about bags of silver that they sell:

Investment Advantages

Bags of silver do offer several investment advantages. First they provide small increments of barter. Secondly, the bag carries a low premium over spot silver. Thirdly, they are legal U.S. tender. Finally, silver bags are recognized around the world as a trading medium and are therefore very liquid.

bob101 · « **Reply #10 on:** January 27, 2009, 10:58:42 PM »

I buy
American Eagle Gold Coin (0.10 oz.) 106.25 - 120.00
from
http://www.bulliondirect.com/nucleo/
From what I understand you should buy golden eagles because they won't be confiscated.
I buy at least one a month, sometime more. It is a small investment but they sure do add up over time.

briann · « **Reply #11 on:** January 28, 2009, 12:34:13 AM »

Quote

Transferring paper money to gold acts as a protection against the possibility that the paper money may lose all its value. Gold never loses its value; throughout history it has been valuable.

Yes... you are right. However, you need to know that.. the chance of this happening is a bit remote. You would need a complete and total destruction of our civilization... a nuclear holocaust... wiping out society. But your rationale is correct.

Quote

I plan to convert all my paper money to gold and then wait out the coming depression. Even if its value goes down in the interim (which I doubt), that doesn't mean anything unless I sell it.

You may be right... but you must understand that Gold can be very volitile. It can drop 50% in a few months... as quick as oil did. However Obama will make SURE that there is inflation down the road... he will pump $$ endlessly into the economy... since his advisors will tell him that he cant risk a deflationary spiral. This can cause erratic hyerinflation. So... your logic is sound... but be aware of the risk!!!

Quote

I plan to hold onto it as gold so that I can leave it to my children....it will also be safe from a nursing home if I end up needing one (to qualify for Medicaid/nursing home care, you need to give them all your countable assets...and gold coins sitting in someone's safe is not a countable asset, only money in the bank is). So by putting all the money into non-countable gold assets NOW, I preserve my childrens' inheritance at the same time.

OK, here is where I gotta step in. While having a percentage in Gold makes sense to hedge for a catastrophic collapse in our society... I wouldnt put ALL of your kids money in it for the long term. Once Obama is out of office.... I'd take most of it out. As others have pointed out.... its return is just above inflation and it is HIGHLY volatile.....

Sentinel For Truth · « **Reply #12 on:** January 28, 2009, 01:55:17 AM »

Call Pat Gorman who has his own precious metals business and weekly radio show from Arizona. He has over 30 years in the precious metals bullion market.

http://buysilvernow.com/index.php?p=0

Gold is going to go into the four digits and stay there this year. It has a spectacular track record for the past 8 years of an annualized rate of return of 16% which is probably the best performing asset class of the decade. Here's a good idea for how to allocate your assets into physical precious metals:

http://buysilvernow.com/index.php?p=6

He can also help you get St. Gaudens which are pre-1933 coins that are highly valued.

Vito · « **Reply #13 on:** January 28, 2009, 02:11:32 AM »

Quote from: New Yorker on January 27, 2009, 10:07:23 PM

Cmon, we've got a room full of Jews here and nobody knows anything about buying gold? We're not living up to the stereotype!

I personally know a lot of Jews (mainly Israelis), and they are all in a struggling financial situation, so I always tell them "Jews are suppose to own banks and have money coming out of there noses, and I know more Jews than anyone and they're all dirt poor.. talk about getting the short end of the stick"

JewishAmericanPatriot · « **Reply #14 on:** January 28, 2009, 10:30:21 AM »

Quote from: bob101 on January 27, 2009, 10:58:42 PM

I buy
American Eagle Gold Coin (0.10 oz.) 106.25 - 120.00
from
http://www.bulliondirect.com/nucleo/
From what I understand you should buy golden eagles because they won't be confiscated.
I buy at least one a month, sometime more. It is a small investment but they sure do add up over time.

They can't be confiscated BUt you need to give your SS when selling them. Just FWIW to those who are tax conscious.

JewishAmericanPatriot · « **Reply #15 on:** January 28, 2009, 10:37:59 AM »

Quote from: briann on January 27, 2009, 08:48:06 PM

Quote from: JewishAmericanPatriot on January 27, 2009, 08:05:06 PM
OK, I took my money out of the bank accounts I had it in (I just left in enough to keep one account open)...now I want to convert it to gold.

Has anyone done this before? My husband has some experience in gold investing, but I want to invest a lot more in it than he ever did.

I'm told that pre-1933 gold is best, since its regarded as collector's coins and therefore cannot be confiscated, should Obama ever decided to become fully like FDR and order everyone to turn in their gold.

Anyone have any experience in this? I'm looking for all the advice I can get before I shell out the bucks for gold coins.

First question... do you think you might need the money in the short term?

Although I think Obama is a dumded down version of FDR... he will NEVER call for a massive order for people to turn in their gold. The situation in the early 30s was different... since we WERE on the gold standard... And Hoover and FDR were desparately trying to increase the money supply... to halt the collapsing of the banks... before we got off it altogether. There is just NO scenarios that Obama would do this.

HOWEVER I LOVE the older gold bullion... (I love anything from that era)

As far as gold being a good or bad investment... that all depends upon your needs. Do you need any $ for unforseen situations? Is this retirement money? are you looking to speculate? Do you just want to damage Obama as much as possible? Do you just care about safety and nothing else?? give me and idea.

I plan to keep some money (several thousand) out for emergencies; my husband makes a good living and he also has an inheritance that he is holding onto for emergencies...so the money I have is really not doing anything but being held for my retirement. So I can afford to put it all into gold if I want to.

My MAIN concern at present is to a) avoid the dollar becoming worthless and b) safeguard my money now, at my age (under 50) so that if I ever end up needing nursing home care, they can't take the gold coins in the safe at home, only what's left in the bank and my SS check (I had to learn a LOT about this issue recently when my mom almost had to go into a nursing home...they can take all a person's countable assets--bank accounts, bonds, etc mostly), but not personal jewelry and other items held at home.)

And YES, I also see removing my money from the banks and switching it to gold as a protest against the usurper and his "government"!

briann · « **Reply #16 on:** January 28, 2009, 11:35:16 AM »

Based upon your needs... I would diversify a bit.

I would keep SOME of your money in cash. I know that Obama MAY start aggressively printing money down the road... so it DOES have some risk... BUT it offers you liquidity... AND Gold EVENTUALLY WILL go back down to below $400.00 an oz. I can predict that with pretty good certainty.... but it MAY happen after Obama is long gone.

Also holding cash actually will sabotage Obama FAR MORE than buying gold. Since if you buy gold... the gold dealer may take your money and just put it back in the bank.. or stocks, etc. If you keep some of it in cash... you can add to deflationary pressure.... but again... there is that risk that Obama may let the printing presses run... out of desperation/frustration.... but that wouldnt be for a while.

Also... for diversification... you may consider silver. its at about $11 an oz, but just like gold it DOES have the potent to half its value.

I would also consider temporarily investing in China until after Obama leaves.... and then removing it later. Investing in China can have a VERY damaging effect, because it can increase the trade deficit, reduce the value of the dollar, and increase the likelihood of bankruptcy. China WILL be negatively effected by the recession.. BUT it WILL have the best opportunity to protect itself since it has HUGE reserves, and virtually no debt. something like PGJ is a safe way to do that.

JewishAmericanPatriot · « **Reply #17 on:** January 28, 2009, 01:03:31 PM »

Someone else advised the same thing, for the same reasons!

Incidentally I really like the Chinese Panda coins, so I may get a bunch of those in silver. That serves the purpose of getting silver and also supporting China.

I think you're right re: holding onto at least half my money....I have a lot to think about! Thanks again.

New Yorker · « **Reply #18 on:** January 28, 2009, 01:10:25 PM »

Wow, we may have stumbled upon something here, we could start a JTF financial security section where we can pool our knowledge on financial issues and methods to get through the coming hard times.

Ulli · « **Reply #19 on:** January 28, 2009, 01:14:09 PM »

Interesting. Thank you Brian.

Rubystars · « **Reply #20 on:** January 28, 2009, 01:22:48 PM »

During times when money has no value to buy things, gold won't do anything to buy you essentials either. It's only worth what someone is willing to trade you for it. During major disasters clean water and food is more of a coin of trade than gold.

AsheDina · « **Reply #21 on:** January 28, 2009, 01:30:53 PM »

You want a REAL investment?? FOOD NON PERISHABLE FOOD- rice, beans, top ramens ETC.

New Yorker · « **Reply #22 on:** January 28, 2009, 02:09:35 PM »

Quote from: AsheDina on January 28, 2009, 01:30:53 PM

You want a REAL investment?? FOOD NON PERISHABLE FOOD- rice, beans, top ramens ETC.

Mountain House dehydrated food, has a 20 year shelf life, comes in big cans, just add hot water and eat.

http://www.preparedness.com/mounhousfood.html

But if we're at the point where we are eating dehydrated food stores, you're going to need rifles and ammo as well.

JewishAmericanPatriot · « **Reply #23 on:** January 28, 2009, 02:12:04 PM »

Those websites that sell food for survivalists are way overpriced, its best IMO, if you have space, to stockpile food. Its what we've been doing.

You need at least 6 cases of water per person; beans and rice are good too, and you need to rotate regularly!

Americanhero1 · « **Reply #24 on:** January 28, 2009, 02:15:10 PM »

That site is a ripoff because I can get most of those exact food items for under 20 bucks