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Compounded

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Everything posted by Compounded

  1. Compounded

    GOLD

    I think it's an important statement and will be seen as such - maybe not yet. Anyway I am saving in gold if gold does go parabolic it will be risky then what is there as a safe saving medium? Has anyone any suggestions?
  2. Compounded

    GOLD

    +1
  3. Compounded

    GOLD

    I think so:- http://en.wikipedia.org/wiki/Gresham%27s_law According to the economist George Selgin in his paper "Gresham's Law": As for Gresham himself, he observed "that good and bad coin cannot circulate together" in a letter written to Queen Elizabeth on the occasion of her accession in 1558. The statement was part of Gresham's explanation for the "unexampled state of badness" England's coinage had been left in following the "Great Debasements" of Henry VIII and Edward VI, which reduced the metallic value of English silver coins to a small fraction of what that value had been at the time of Henry VII. It was owing to these debasements, Gresham observed to the Queen, that "all your fine gold was convayed out of this your realm."[3] Gresham made his observations of good and bad money while in the service of Queen Elizabeth, with respect only to the observed poor quality of the British coinage. The previous monarchs, Henry VIII and Edward VI, had forced the people to accept debased coinage by means of their legal tender laws. Gresham also made his comparison of good and bad money where the precious metal in the money was the same. He did not compare silver to gold, or gold to paper.
  4. Compounded

    GOLD

    I think so:- http://en.wikipedia.org/wiki/Gresham%27s_law According to the economist George Selgin in his paper "Gresham's Law": As for Gresham himself, he observed "that good and bad coin cannot circulate together" in a letter written to Queen Elizabeth on the occasion of her accession in 1558. The statement was part of Gresham's explanation for the "unexampled state of badness" England's coinage had been left in following the "Great Debasements" of Henry VIII and Edward VI, which reduced the metallic value of English silver coins to a small fraction of what that value had been at the time of Henry VII. It was owing to these debasements, Gresham observed to the Queen, that "all your fine gold was convayed out of this your realm."[3] Gresham made his observations of good and bad money while in the service of Queen Elizabeth, with respect only to the observed poor quality of the British coinage. The previous monarchs, Henry VIII and Edward VI, had forced the people to accept debased coinage by means of their legal tender laws. Gresham also made his comparison of good and bad money where the precious metal in the money was the same. He did not compare silver to gold, or gold to paper.
  5. Compounded

    GOLD

    +1 Means big smackdown is probably due soon if you think the market is manipulated.
  6. Compounded

    GOLD

    Jetstram Gold over time holds value but gains purchasing power in deflationary periods and loses purchasing power in inflationary periods this has happened over and over again throughout centuries , the only exception is the 1970's inflation when gold rebounded after being manipulated lower by the great western powers in the London gold pool price supression scheme. Mish is a deflationist I think he knows history shows deflation is good for gold - he says gold may lose dollar value in his predicted deflation but will gain purchasing power. Hyperinflation - anyting of value is better than money - in that situation gold is best but it may be so good the government requisitions it.
  7. I remember a radio prog from about 1978 - basic message was - UK will have no worries about oil in the future as North sea Oil comes online and the party that wins the next election will benefit in the event the election was in 1979 and Mrs T won. World oil production has flatlined for a few years now - even when prices had a sustained period above 100 USD output hardly changed at all. We have a global recession the worst since the Great depression and oil is 70 USD = Oil production has peaked - its a bell curve so meaningful declines will be a few years away - but they are I think coming. IMO oil will not get rediculously expensive instead the economy will decline so that oil demand matches supply - this seems to be happening - and is logical as demand and supply must match. I have watched all of Martenson's crash course he feels that to say the least its unfortunate we have a bursting credit bubble (the biggest ever thanks to fiat currency) coinciding with peak oil and a demographic problem too.
  8. Compounded

    GOLD

    +1 except I was alive then though do not remember Nixon leaving the gold standard- I do remember people were much more worried about the financial mess the uk was in the 70's than they are now and people were genuinely worried. There was a Labour government in the 70's that had spent too much that is almost a repeat but the worry that existed then of some sort of economic collapse looming is not present now .
  9. Compounded

    GOLD

    Leverage is often silly and indeed rash. Holding gold is historically about as conservative and unrash as it's possible to be and even if its a loser - its just about the only thing thats guaranteed to hold some value.
  10. Compounded

    GOLD

    I have got used to it - understand the fundamentals and wait - gold certainly takes it's time. I think the real point is the alternative mainstream saving media are rubbish. And the only other way is by being clever and swapping from from one fashionable asset to the other earlier than the crowd; thats difficult even with Dr Bubb giving his not inconsiderable investing experience for nothing.
  11. Compounded

    GOLD

    I contend there are few like you - though probably there may be a substantial percentage of posters on a gold investment thread like this! Congrats not many got gold at £250 per oz - I did not get it until £360 (and that is thanks to randomly finding GF a German with family memory of currency collapse on HPC) and I did not move the pension which represents real money for me until the 400's.
  12. Compounded

    GOLD

    In th HPC days of this thread many were of that opinion - including me. I think, I hope, I am wiser now.
  13. Compounded

    GOLD

    I hope gold is money and not a gamble and would be very happy if it manages to preserve my current spending power in the storm ahead. History - few have made money with gold many have preserved their wealth through difficult times.
  14. Compounded

    GOLD

    Understand the fundamentals --> be with them. IMO fundamentals are the whole system now is a huge Ponzi scheme - government finance, pensions, equities, bonds, banking and the paper money itself; get out hold money and wait. Give it time, we may need to wait a long time Gold is the only solid, tangible real money (it's value even survives civilization collapse) = you will emerge with purchasing power preserved and then you will have all about selling anything and eveything very cheaply because they have lost so much to the greatest Ponzi scheme in history. Silver - risky - it's an industial commodity now but it may perform as money again in extremis if it does it will be a real winner and holding a bit makes some sense. Ag like Pd Cu Pt Pb and a long list of rather useful other metals cannot be money in the recognized sense there is now too little reserve above ground. Simply the bond holders cannot run to Ag there is not enough of it; they can run to gold.
  15. Compounded

    SILVER

    A golden guinea must have quite a bit of numistic value and it's probably much more valuable than it's intrinsic scrap gold, I am not sure what happens to the numistic value of gold coins in a gold boom. does anyone? The British museum has a brilliant collection of ancient coins far better than the BOE museum if you are interested in that stuff (electium, silver pennies, roman, coppernose etc.) it is very stuffy not at all suitable for kids but its the best museum in the UK if you are very interested in the subject IMO. The Iron page was wot came up in google - the search was a chunk of text from the original post. Too many people --> too much demand and running out of things seems to be the the gist of this thread - I fear Maltheus could be right in the end.
  16. Compounded

    SILVER

    Gold sovereign and half sovereign pre 1914 were in circulation. All "silver" coins were sterling silver .925 before 1920 and then 0.5 up until 1946.
  17. Compounded

    SILVER

    I wondered that too a google came up with this list http://terresacree.org/feranglais.htm
  18. Compounded

    GOLD

    Invest in gold with no debt = use it as a medium to save - use it as money - it's historic role the function it performs best. Houses became an investment --> an unfolding disaster. I somehow think gold does not want to be an investment with all the trouble of bubbles and busts - free market money will I hope remain money, I think the invisible hand of the market will keep it so.
  19. Compounded

    GOLD

    Many have preserved wealth by holding gold through incredibly difficult times. Few have made a fortune by holding it. What else could you expect from holding money?
  20. Compounded

    UK House prices: News & Views

    Logically the over shoot should be proportional to the boom. + There is nothing like dispair now + Capitulation is nowhere all I see is hope of return to normality and that "normality" is reckless lending consistent with peaking credit in Kondratiev autumn. My conclusion we are in a property bull trap.
  21. Compounded

    GOLD

    I have just found this apologies if iit has already been posted http://seekingalpha.com/article/133523-gol...k-market-bubble It’s been quite a while since my last contribution to Seeking Alpha, but amidst the vast economic turmoil, there is yet another bubble is brewing. Here’s how you can profit from it. In order to understand the fundamentals of this trade, we need only to review the headlines of the last few months: ....................... Upon closer examination, there is what appears to be a massive inverse head and shoulders in the final stages of forming. Given the fact that we just broke that downtrend on the daily chart, could we finally start to see that right shoulder form? We’ll see what happens, but if it does form, gold would be on the verge of an absolutely massive break above $1000. All we can do at this point is and see if it happens. A break above $1000 in gold would seemingly correlate with another leg down in the stock market, not to mention a crash in the dollar, both of which I believe will happen
  22. Compounded

    UK House prices: News & Views

    +1 These figures make it look like the HPC has a long way to go in the UK.
  23. Compounded

    GOLD

    House prices are sticky - this type of thinking is the reason why.
  24. Compounded

    SILVER

    There is a truth in that quip that is depressing. However, I do have a friend that uses silver cutlery and it's nice it is a much prettier metal than stainless steel and i am tempted myslef to use some of the spoons and forks I own unfortunately I have a dishwaher and silver is no good in a dishwaher it tarnishes badly.
  25. Compounded

    SILVER

    I have bought Ag spoons and forks from ebay in the past at about spot and a couple of engraved trophies at below spot but this is a time consuming way to aquire silver. I do however think silver in this form is the least likely to be confiscated.
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