cash4gold liquidation - another greedy strategy

[TtC]

Gold may be important because, in my opinion, besides that fact that nearly every currency in the world is fiat, all of the spending of the USA for firstly, the "Bailout" and secondly, all of the social programs Obama wants to implement will seriously devalue the dollar making gold a hedge against inflation.

Look at it this way:

The Bailout has taken so far about five trillion dollars after including some of the previous things added like Freddie Mac, etc. The implementation of Obama's "plans" will likely cost another three to five trillion, provided he keeps those promises, which is doubtful.

Where did all this money come from? Nowhere; it was created out of nothing. You just devalued the US dollar by at least fifty percent in less than two years. They are adding zeros to the governmental bank accounts and running the printing presses 24/7.

If you trade currency or look at the charts on a regular basis, you will notice that the US dollar compared to say, the Euro, GBP, CDN, CHF, is moving within a somewhat moderate range of support and resistance. Essentially it is moving sideways. The reason the US dollar is still relatively high is because foreigners are buying US dollars to pay off US debts, because they see huge liability in the American market, which is correct. The same is happening with the Yen. The Japanese want their money back, thereby driving up the price.

If you look at the other, more stable currencies, such as the CDN, GBP, and the CHF and compare them on charts, you will notice that they are relatively stagnant, but not absolutely unmoving, compared to the USD. I will say that the CDN is a commodity based currency mostly, and the CHF is actually partially backed by gold, but you have to allow for some leeway when it comes to trading and spot prices.

Another thing that must be understood is that most people who trade are not professionals, most of them are actually computers that are programs to by and sell based on current pricing. A lot of real people who trade will sell at a loss in order to be out of the market, skewing the actual curve.

To make a long story short, the US dollar will most likely go to hell, and in order to preserve such wealth, a lot people are fleeing to gold and silver. But as I said before, the metal markets are subject to manipulation as well.

I still see no reason to be overly concerned about people selling their old and broken jewelry for cash because if something happens, it is hard to refine it without some sophisticated equipment and risk mercury or chlorine poisoning.

I don't think it is a ploy from the powers that be to steal people's gold. I think it is someone taking advantage of the market, and the lack of physical metal so they can make a profit.

[TtC]

I think something needs to be straighten out first as I worked in the jewelry industry for twelve years.

Firstly, appraisal prices are a fraud. There are about six different types of appraisals depending on the situation.

Secondly, when you are doing cash4gold, you are selling your jewelry at scrap prices, meaning below spot.

Here's some math:

If you have a ring that is 14Kt gold and weights five pennyweights (1 pennyweight = 1.55517384 grams, so that is 7.78 grams) and want to sell it for scrap it goes like this:

They will firstly take the bid price, which is 987.10 as of right now, and divide it by 20 because there are 20 pennyweights in a troy oz, which is how gold is weighed.

987.10/20= $49.36 per pennyweight of 24kt pure gold. Remember, your ring is 14Kt. The percentage of gold is 14/24 which is 0.583. This is the actual gold content. Take the following:

49.36 x 0.583 = $28.79 per pennyweight of 14Kt gold.

They won't give you full market price because that won't cover refining costs so dock 10%. We now have $25.91/dwt.

Your ring is 5 dwt (pennyweights), so 5 x 25.91 = $129.57

Take the 129.57 and they will then remove another 10% from the 129.57 for labor and shipping costs.

Your ring, which if bought new the day before would have cost about $475 new, now gets you $117.

Like I said before, there is no way to make a profit on this as a consumer, BUT for those with broken jewelry, you might as well.

As for the diamonds and whatnot, if they were smart enough to take them out of the jewelry before they sent them off, they could only sell them to a jeweler willing to buy and they would only pay out less than what they can buy them for new from a wholesaler.

The markup on jewelry is usually three times, but don't blame them, your clothing has a markup of ten times. Jewelers only get targeted because you can sell it for scrap and people get mad. They have to make a living, too.

It is your choice what you do with your gold, but take responsibility for your actions.

[TtC]

eraser2012:

I agree totally with your first paragraph, but I was making a point by using such an obscure example.

Your second paragraph on the other hand is only so solid. Yes, the US government confiscated gold and they royally screwed over the American public in the process because they were paying out paper money below value in order to pay off US debt, or at least that's what the history books say. BUT the point I am trying to make that it seems no one is taking notice of is if they really want to take your gold they will and will do so by force. I doubt this would happen, but it is a possibility.

I would also like to note that money that is not gold or silver is illegal in the USA and only congress has the right to print currency, not the fed.

The last thing I would like to say is why do you need a means of exchange at all? If the level of consciousness reaches a higher level why cannot all things be free? In the current situation, this is not possible, but it seams, as we have seen, people need their money.

And Keynesian economics as well as Austrian economics do not work as we can see by reading the daily paper.

[eraser2012]

Originally Posted by TtC

eraser2012:

I agree totally with your first paragraph, but I was making a point by using such an obscure example.

Your second paragraph on the other hand is only so solid. Yes, the US government confiscated gold and they royally screwed over the American public in the process because they were paying out paper money below value in order to pay off US debt, or at least that's what the history books say. BUT the point I am trying to make that it seems no one is taking notice of is if they really want to take your gold they will and will do so by force. I doubt this would happen, but it is a possibility.

I would also like to note that money that is not gold or silver is illegal in the USA and only congress has the right to print currency, not the fed.

The last thing I would like to say is why do you need a means of exchange at all? If the level of consciousness reaches a higher level why cannot all things be free? In the current situation, this is not possible, but it seams, as we have seen, people need their money.

And Keynesian economics as well as Austrian economics do not work as we can see by reading the daily paper.

TtC: Do me the favor of reading the post here: http://www.augustreview.com/issues/g...?_20081209107/ I think this overview is SPOT on in terms of how gold is the cornerstone of our financial collapse. I highly recommend this reading to everybody interested in this subject.

As far as your comment about consciousness reaching a higher level making "money" unnecessary, YES, I could not agree more with you. I couldn't give a damn about money, honestly, and look forward to the day when all sentient beings rise above such needs. I only make the argument because there are many people truly in denial of such possibilities who are on the verge of becoming victims of the elite's plan to destroy their financial lives and drive them ever further into the reality trap which enslaves us all. Those unaware that they are already slaves need some solid advice on how to protect themselves to allow them to continue their spiritual journeys without being side tracked into the coming plans. Is money the answer? Absolutely not, but this time in our history is so important that I would rather see people properly prepared to resist the atrocities that are surely planned. I hope that make sense.

[Humble Janitor]

I just wish we lived in a world where you could do anything you want and be anything that you wanted to be without having to fork over a fortune for it. I want to brew beer but the cost of schooling for it is out of my range and it makes me mad to think that I'm being limited by a bunch of paper.

[dayzero]

If you listen to Cliff High, George Green, St Clair, Henry Deacon, hell, just about anyone, including me [!] they'll tell you that time is short for getting the metals in.
No, you can't eat them [well, actually you can drink colloidal gold and silver], but as the ineffable Cliff says;

"if you can make Pie, then you can trade.
If you can't make Pie and you have metals, you can buy Pie."


I wish I had a massive farm though!
Thing is, there's gonna be plenty of empty farms and other buildings soon-ish, so I guess I'll wait for one of them.

[dayzero]

PS
I wanna brew beer too, and I reckon you could get quite a lot of Pie for Beer...
Well, you could off people like me who love beer almost as much as Pie.
I'm watching a load of brewing stuff on eBay right now....

so...... get the demijohns in!
Stock up on yeast!
You'll be a new Paradigm Business Success Story!

And just think what the new Business Angels might be like! lol.....

[Humble Janitor]

Originally Posted by dayzero

PS
I wanna brew beer too, and I reckon you could get quite a lot of Pie for Beer...
Well, you could off people like me who love beer almost as much as Pie.
I'm watching a load of brewing stuff on eBay right now....

so...... get the demijohns in!
Stock up on yeast!
You'll be a new Paradigm Business Success Story!

And just think what the new Business Angels might be like! lol.....

I actually know how to brew already. I am just lacking in time to hone my skills and improve upon what I already know.

As for stocking up on yeast, you can ferment beer with wild yeast. The only downside is that the beer will be sour due to the strain of brett (short for brettanomyces) yeast that ferments the beer. This is why many "farmhouse ales" smell like a barn. Still quite good.

I guess my destiny is to grab whatever the hell I can find and start over. I have no desire to prepare to the gills like everyone else because what if my "stash" of survival stuff was destroyed? I'd have to start over anyway. When the time comes, I will be prepared in a different way.

The cash4gold is a form of pawn shop w/the convenience of not leaving your home. As we all know, convenience costs more.

That said, to me, investing in metals is merely an effort to preserve some of your monetary wealth. But just as important, if not more, is investing in tangibles, tools & other hardware for gardening, building, clean water, animal husbandry, etc. which I'm doing.

It just makes sense that while I'm living in an environment away from any large city, to use the land for food production, stocking the pond, creating backup energy and such.

And to the yes/no list of skills... mine are the same as yours Ttc except for the last one, dieing < I'm not so sure I will do that well.

Another item to add to the list: Are you a good neighbor? Can you be trusted w/ & cows? I thank Norval for that one. My answer to this is a big Yes as well.

er... a word got lost in the last post...
It's can you be trusted with children and cows?
lol