Solving money problems - Cyprus way

[Captain Awesome]

Stuff like that makes people want to own things like physical gold.

Why do you think everybody and their brother talks about buying gold and silver and what an awesome investment it is (it's not).

[steelrules]

700% in 20 years, yeah I say Gold is a great investment and without risk.

[Captain Awesome]

700% in 20 years, yeah I say Gold is a great investment and without risk.

Gold prices in 1993 - $359.00
Gold prices now - $1388.00

Annual rate of return = 7%

S&P 500 (market) in 1993 - $438.00
S&P 500 (market) now - $1655

Annual rate of return = 6.87%

Translation = Gold beat the stock market by a hair.

PS: If you compare gold to Dow Jones over the last 20 years, you in fact lose money:

Dow Jones (market) in 1993 - 3,607
Dow Jones (market) now - 14,922

Annual rate of return = 7.36%

[Static]

The U.S. dollar has lost significant value since 1993 which eats away at the return for a non-US dollar purchaser of gold. The real compound growth return would have been 5.8% annually, or less than the stock market return. Furthermore, you should include a 5% annual dividend, something gold does not pay. So the stock market is far more profitable.

[steelrules]

The U.S. dollar has lost significant value since 1993 which eats away at the return for a non-US dollar purchaser of gold. The real compound growth return would have been 5.8% annually, or less than the stock market return. Furthermore, you should include a 5% annual dividend, something gold does not pay. So the stock market is far more profitable.

You keep pumping your paper promises , I'll stick to hard assets.
Governments and central banks all over the world are going after peoples money, their deposits and retierment accounts, including here in Canada.
Because If you don't have it in your own hands you don't own it.

[steelrules]

$1 Trillion In US Bank Deposits Held Abroad Will No Longer Be Insured

In the aftermath of the Cyprus bail in (and to a lesser extent the Polish pension fund debacle), it is understandable if depositors are a little sensitive about the insurance, and thus confiscability (sic), of their deposits. Starting today, following a 5-0 vote by the FDIC, depositors in foreign US bank branches will officially no longer have recourse to a $250,000 in deposit insurance. The notional amount of deposits at risk: $1 trillion. This is not a new development: the FDIC rule to curb insurance on this category of deposits was proposed earlier this year, and today was the formalization. However, questions do arise: if a major US depository institution does fail domestically, the financial state of their depositors abroad will hardly be the biggest issue.

http://online.wsj.com/article/SB1000142 ... 36230.html

The move rejects what officials called a "creative" legal proposal from the banking industry. "We don't want to become the deposit insurer for the world," FDIC officials said at a briefing.

The FDIC's action was prompted by the move last year by U.K. regulators to propose changes in the way deposits held at overseas branches should be treated. FDIC officials said the U.K. proposal potentially opened the door to those deposits being insured by the FDIC; the rule being finalized Tuesday clarified that isn't the case, said FDIC Chairman Martin Gruenberg.

"The final rule protects the deposit insurance fund, while at the same time recognizing both the FDIC's commitment to maintaining financial stability through the prompt payment of deposit insurance and the evolving nature of the global banking system," Mr. Gruenberg said in a statement

[steelrules]

http://safeshare.tv/w/jkbxcFMkyu

[Captain Awesome]

How are them gold and silver prices?

[Ka-El]

How are them gold and silver prices?

GOLD (BID HIGH/LOW) 1158.10 / 1180.40
SILVER (BID HIGH/LOW)15.81 / 15.91

My dividend paying stocks are doing much better, and I can sleep in my house ;o)

[I Think]

Well Cap'n if I told you anything about gold, then you might sic the CRA on me.

[Captain Awesome]

GOLD (BID HIGH/LOW) 1158.10 / 1180.40
SILVER (BID HIGH/LOW)15.81 / 15.91

LOL. Down quite a bit.

Hopefully steelrules didn't spend all of his money on silver.

[Glacier]

How are them gold and silver prices?

Up 268%...

[I Think]

Hopefully steelrules didn't spend all of his money on silver.

Where are the Hunt Brothers when we need them?

[Glacier]

Ha, I had forgotten about steelrules. It seems he hasn't posted in almost 2 years.

[Static]

Translation = Gold beat the stock market by a hair.

That is incorrect because you forgot to include 2% annually of dividends.