3 ms·

Pre 1982 pennies are worth like 2 or 3 cents melted down I believe. They are becoming more and more rare because they are made of copper, a valuable resource.

by maeon3 16y ago

Pre 1982 pennies are worth like 2 or 3 cents melted down I believe. They are becoming more and more rare because they are made of copper, a valuable resource. The federal reserve is printing money out of thin air and diluting the currency more than ever. This means that as we move forward, too many dollars are going to chase too few goods and the prices will rise. Eventually if this grand theft is left to continue without limit, the Federal reserve will print so many dollars that one day even the paper fabric of the money will become worth more than what you can buy with it. Nickels are worth about 6 cents I recall. Don't get caught melting down pennies or Nickels for the guaranteed profit because it is a crime. However, as inflation continues, the value of the materials in the coins will rise to infinity, at that point all coins will mysteriously vanish and the mint will not make new ones. They will instead add zeros to the dollar bills. Buy gold, it's going to $5000 an ounce in the next year. Gold is flatline, it is a stable store of value, the gold is not gaining value, it's the unit of measure you're using that is depreciating.

mey 16y ago
Gold is not flatline, nor stable, especially when adjusted for inflation (CPI-U). Gold, like money, is based on faith. People expect it is a limited resource, but in reality, the price of gold simply hasn't always been at a point where it is profitable to mine more of it. http://en.wikipedia.org/wiki/File:Gold_price_in_USD.png http://en.wikipedia.org/wiki/File:Gold_price_in_USD.png http://en.wikipedia.org/wiki/Gold_as_an_investment http://en.wikipedia.org/wiki/Gold_as_an_investment
- maeon3 16y ago
  Your correct it is not flat, it's value is modified by how much gold can be mined by companies. Also it is modified by how many people want the metal itself. What I meant to say that if you worked hard for a year 200 years ago and saved yourself maybe 10 ounces of gold, and buried it in the ground for 200 years and now you have those 10 ounces. The goods and services you could buy between then and now would be comparable. whereas the various currencies he used 200 years ago would be either completely worthless or decreased in value 99.99%. Gold is going to be around for another 50 years, and you'll be able to buy things with it. The US Dollar however is not. When I say gold is flatline, I mean that in principle a ounce of gold saved will buy you nice things 50 years from now, a thousand dollars now will buy you nothing 50 years from now.
  - hugh3 16y ago
    Gold is going to be around for another 50 years, and you'll be able to buy things with it. The US Dollar however is not. I'll tell you what I tell everybody who thinks there's going to be US Dollar hyperinflation: I bet you a trillion dollars that's not going to happen. Seriously though, predictions are tricky, especially about the future. It may be worth injecting a tone of a little more uncertainty into your pronouncements about what's going to happen in the future. Personally I'd have less confidence in the buried gold or the buried dollars than I would about the value of the land you're burying it under.
  - crpatino 16y ago
    The belief that gold holds an intrinsic value is wrong, and the advice you derive from it is incredibly misguided. There's nothing special about gold. It has some nice properties that make it intrinsically valuable, but not more than copper or other metals. The reason basically all cultures value gold is that other people like it also, and it is hard to counterfeit. That being said, gold goes through the same ups and downs in perceived value as any other commodity. For what I have read, it is trading now more or less around its long term historic value (think centuries long). If there's so much buzz about gold now, it is because it is coming from a few decades long of sub-valuation, but this is correcting fast, and the pendulum begins to swing now to the other side. If you are not able to pick your time correctly, you'll be loosing money soon enough. Besides, there is the fact that it is a long time investment. If you are forced to liquidate your position to pay whatever need you have, you will probably loose money. And there's the commissions that will eat out on each transaction, so you better hold to gold until it is a really good time to sell.
  - mey 16y ago
    As I said, faith is what drives the value of gold, as well as money. I personally put faith in the US Dollar, you put faith in gold. This drives each's comparative value in turn. And it's the amount of faith that is reflected in the conversation prices.

by maeon3 16y ago

mey 16y ago

Gold is not flatline, nor stable, especially when adjusted for inflation (CPI-U). Gold, like money, is based on faith. People expect it is a limited resource, but in reality, the price of gold simply hasn't always been at a point where it is profitable to mine more of it. http://en.wikipedia.org/wiki/File:Gold_price_in_USD.png http://en.wikipedia.org/wiki/File:Gold_price_in_USD.png http://en.wikipedia.org/wiki/Gold_as_an_investment http://en.wikipedia.org/wiki/Gold_as_an_investment

maeon3 16y ago
Your correct it is not flat, it's value is modified by how much gold can be mined by companies. Also it is modified by how many people want the metal itself. What I meant to say that if you worked hard for a year 200 years ago and saved yourself maybe 10 ounces of gold, and buried it in the ground for 200 years and now you have those 10 ounces. The goods and services you could buy between then and now would be comparable. whereas the various currencies he used 200 years ago would be either completely worthless or decreased in value 99.99%. Gold is going to be around for another 50 years, and you'll be able to buy things with it. The US Dollar however is not. When I say gold is flatline, I mean that in principle a ounce of gold saved will buy you nice things 50 years from now, a thousand dollars now will buy you nothing 50 years from now.
- hugh3 16y ago
  Gold is going to be around for another 50 years, and you'll be able to buy things with it. The US Dollar however is not. I'll tell you what I tell everybody who thinks there's going to be US Dollar hyperinflation: I bet you a trillion dollars that's not going to happen. Seriously though, predictions are tricky, especially about the future. It may be worth injecting a tone of a little more uncertainty into your pronouncements about what's going to happen in the future. Personally I'd have less confidence in the buried gold or the buried dollars than I would about the value of the land you're burying it under.
- crpatino 16y ago
  The belief that gold holds an intrinsic value is wrong, and the advice you derive from it is incredibly misguided. There's nothing special about gold. It has some nice properties that make it intrinsically valuable, but not more than copper or other metals. The reason basically all cultures value gold is that other people like it also, and it is hard to counterfeit. That being said, gold goes through the same ups and downs in perceived value as any other commodity. For what I have read, it is trading now more or less around its long term historic value (think centuries long). If there's so much buzz about gold now, it is because it is coming from a few decades long of sub-valuation, but this is correcting fast, and the pendulum begins to swing now to the other side. If you are not able to pick your time correctly, you'll be loosing money soon enough. Besides, there is the fact that it is a long time investment. If you are forced to liquidate your position to pay whatever need you have, you will probably loose money. And there's the commissions that will eat out on each transaction, so you better hold to gold until it is a really good time to sell.
- mey 16y ago
  As I said, faith is what drives the value of gold, as well as money. I personally put faith in the US Dollar, you put faith in gold. This drives each's comparative value in turn. And it's the amount of faith that is reflected in the conversation prices.