Topic: Gold collapsing. Bitcoin UP. - page 1501. (Read 2032274 times)

I suggest, as you have, that like most economies the Bitcoin economy is highly complex.  Someone who would wish to manipulate it's direction could have that desire for all kinds of reasons.  I have at least fooled myself into thinking that the direction(s) I would like to see it go are generally advantageous to 'the 99%' (for lack of a better description.)  I believe I would trade a total personal loss of my position if it meant that these dreams are facilitated, but I would never know unless I had to make the choice and it is very unlikely that I ever will.

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On a totally different tangent, you might remember our discussions about the legal ramifications of the MF Global debacle.  Somewhere else in at least one of my 1000 posts I mentioned hearing that in the case of a bankruptcy, derivatives positions take priority over all other creditors.  (I believe I heard that from Denninger at market-ticker.org who has an uncanny ability to find interesting tidbits of info early...and can apparently set up a DNS server to boot.)

You may be interested in this recent Lyster show, particularly at around the 15 or 16 minute mark:

  http://www.youtube.com/watch?v=Uv_ERsZRnkw

That sounds an awful lot like the "love of money" instead of money as a useful tool. Controlling the direction of Bitcoin for its own sake would be futile because it depends on so much for its existence.

Any form of money facilitates commerce, trade, projects, etc. I view becoming a "Bitcoin Billionaire" as a means to furthering other avenues of progress in science, engineering, and medicine - not necessarily the Bitcoin system.

If you were suggesting that these are all things within the Bitcoin economy, great

Since this conversation has drifted a way from needling jabs (however briefly) I'll elaborate on some of my concepts and strategies.

If Bitcoin 'goes' (and as I've said a million times, I consider that to be a huge 'if') and if one is just interested in increasing one's net worth, it won't really matter whether one has 200 BTC, 2000 BTC, 20,000 BTC or 200,000 BTC.  One will be stupidly 'rich' in any case.  So I personally don't see any point in being overly heavy in BTC to achieve the goal of getting 'rich'.  YMMV.

(I think that) When one gets to a certain plane, the amount of USD or gold or Bitcoin one controls means little in relation to 'wealth'.  'Wealth', in my opinion, means having the ability to control and shape events on a grand scale.  Gates, Buffet, Bernanke, and Obama are all very 'wealthy' men...they just came to their wealth through different paths, and the wealth that they enjoy is variably transient in that it will subside for the latter two more readily than it will for the former two by virtue of the differences in the backing stores that these parties maintain.

The reason to obtain many thousands of Bitcoin would be to be able to control and shape events in the Bitcoin economy in case that Bitcoin takes off (without needing to be able to write code that people like.)  Having that ability is worth only so much to me in terms of opportunity cost.  Again (and to all readers) 'YMMV'.

yeah, all i bought was bags of junk silver too.  i honestly don't know how you resisted selling into that parabola last year May.  i sold a few bags at $49 and broke my back selling all the rest down in the high 30's for an avg cash out of $44.  clearly i won't be considering buying again if or until we get back down where i initially bought.  don't get me wrong; i love the metals out of their beauty and the concept of hard money but the trader (cycles) in me told me to sell.

and yes, i think Bitcoin has way more potential from here on.

Assembly technician included?

It'd still be better than SolidCoin...


I'm pretty certain that Bitcoin will take off when the reigns holding physical gold & silver back are loosed.


As long as the buying is being done from a country so obscure that nobody can point it out on a map...

My first PM purchase was silver and it was shortly before we went into Iraq.  The inevitability of the war had gotten me studying economics and that opened my eyes to PM's which I  had never had any interest in prior.  By pure shit-house luck it happened on a day when it took a little blip down to what I think was something like $4.20.

Of course I've bought much higher than that as well.  I'm underwater on my recent purchase I believe.  But my recent purchases tend to be smaller...a $1000-face bag is fairly dear compared to the good old days.  Wake me up when I can get another one for $3500 if you would be so kind.

i bought all my silver btwn $9 and $12 too!  brilliant minds think alike!  can't wait to do it again!

+1.
I still miss the days when paper silver dropped from $20 to $9, the best bullion deal I could find was around $12. I backed up my semi..... 

$29 silver.  yep, i blinked and i missed it too.

“It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.” - Mark Twain

Gold is a common enough part of the holdings of larger financial institutions, hedge funds, etc these days that when there is a significant need for liquidity, it goes on the block.  It would not surprise me to see a transient decline in the price of gold (particularly paper gold) in the event of a need for liquidity, and we've seen this phenomenon from time to time in recent years.  They've never bothered me much.  There seem to be enough buyers these days that the price recovers surprisingly quickly.

USD shooting up to $80.33

it's gonna be one of those ugly nights for gold and silver again (not to mention all risk assets EXCEPT Bitcoin).

The purchase yesterday was actually on my behalf from someone who owed me money and happened to be near a dealer in WA, but not terribly far out of line with what I'm accustom to paying to my dealer when I buy in CA.  It was only a few OZ so I did not get any volume discount.

Seems like even though dealers hedge, the spread gets significantly higher when there is volatility.  I suppose their costs to hedge go up.  I am totally happy to pay a premium to buy face-to-face from a dealer with a long history of being in business.  I've never resorted to buying on-line.  An unpleasantly high percentage of other things I buy on-line are never delivered correctly or as advertised and it's not worth the hassle for me when it comes to buying PM's.

Not by alot, I can't find any cheaper then $1632 with a quick search..  Interesting...

no, he overpaid.

Last time I bought Krugerrands the premium was like $20 bucks..  Lemme go dig around.. 1650 seems high, are we starting to see a physical to paper differential?

I did so yesterday.  I got it for $1650 per Krugerrand.

If its all that dire, peeps won't trade the stuff you need for coins (even if they are made of gold)..

I enjoy target shooting and reloading, and firearms do appreciate, so to me, its not a waste of time.   Old canned food does taste like shit .  Fresh meat and produce rock!  (livestock + garden) 

Really all you need for long term storage is a super heavy coat of oil and a low humidity environment.

If we ever have a situation where having lots of firearms or 'prepper' stuff is desirable, I'll get all I need for either a few silver coins or a fraction of a BTC.  Either is fine with me.

If we don't see such a situation, an arsenal of guns is an expensive waste of time and target for thieves and the old canned food will taste like shit. 

Thankfully my brain doesn't undergo stimulation from guns for whatever reason...I end up being able to deploy the resources elsewhere.  Unfortunately I'm not even interested enough to properly maintain those which I have.

Which is exactly why my firearms collection is worth more then my BTC investment