Compounded

It seemed at one time to be forever hitting 666 - It looks like deflation is a possibility at least for now, so i have had a good look at Mish's site and some of his stuff on gold. It reassured me alot, gold is good in deflation it certaily was in the 30's deflation. We are in uncharted waters Fiat deflation happened in Japan but that's irrelevent to the gold market at that time as Japan is only a small part of the golbal ecomomy. + He beleives the manipulation while he is sure it happens is overrated by gold bugs, free market forces are the main mover. + Gold has gained in value dramatically against other assets, this will continue as deflation continues. + Gold is good to hold because we cannot be really sure what the authorities are doing - hyperinflation could happen - but only if they make a serious misjudgement. + Monetary demand is all that matters - jewellery demand is largely irrelevent as is mine production. + He beleives gold while it is not money anywhere now behaves as money and should be treated as a currency. + Gold does poorly in normal/good times. + Gold does well in difficult times - he beleives thing are not going to get better any time soon - the deflation will last years. + The managers of our Fiat currencies are much more capable than those in the past they know that gradual inflation works - they have made it work for nearly a century with no panic, we should not expect elementary mistakes like those that crashed historic fiat currencies.

A drop to $680 would match the fall seen in 1974-76 BTW last couple of pages have been excellent.

Anecdotal People at work today genuinely seem to feel it's all sorted out, a big change of mood. I said nothing.

Mate compared to the average man you are a genius. You have gold and (I think) no debt.

Volatility has been predicted to be massive as the system begins it's collapse - it makes sense if you think about it. If someone is facing margin call or similar squeeze they sell the most liquid asset - gold IMO will be sold and prices affected. NS&I is only good if you have full faith in the UK government - I have absolutley no faith in Gordy and his clowns and so will not touch NS&I. Cheap paper gold is paper - IMO all paper could be reverting to it's intinsic value.

This drop and the one yesterday just do not seem the same as normal drops, is it genuine market volatility as opposed to supression?

I find it inconceivable that politicians will not print more money to spend and buy votes if lack of money in circulation is causing problems.

I have posted this on HPC - it seems I am somewhat indebted to GF, pluto et al (could have been much better if I had found cagnaos MSE posts in 2004) http://www.housepricecrash.co.uk/forum/ind...15&start=15 (Title - Just checked my pension - all gains of the last 5 years wiped out) I moved mine to gold in April - it's 9% up since then. It is 60% up over what it would have been if I had left it on the stock market - incidentally this is due to applying knowledge I have learned on this site.

Advance pages one by one on the last page you get a link to page one.

Is alcohol allowed in Dubai? Are yu in Dubai?

In the Russian collapse Vodka became money exchangeable for anything. I have accumulated a few dozen half bottles of vodka, shame we have such high tax on it here otherwise i would have bought a whole lot more.

After a 20 year bear market and then CB supression of the price most people including most experinced investors have forgotten gold. They are too young to remember the last gold bull are not catching on to gold's thousand year and more function as the safe haven of last resort, this is good luck because we can still buy it at a reasonable price. This situation which as far as I know has never happend in history before might not last long. They are looking en mass to government bonds which are at a high - bonds issued by bankrupt governments that will likely be near worthless.

I would be happy if I was wrong, I beleive there is a real chance of economic meltdown. If my gold goes down 50% and all is well - I would settle for that. Cgnao has said the same. IMO gold is insurance few have made a fortune by owning it but many have preserved wealth in disaster by owning it.

I have one the ugliest coin I have ever seen but the colour the shine and the beauty of pure gold is good.

Do they still exist?

Really strange day today gold crashed at 3 pm BST, I cannot remember it ever doing it's regular daily dip at that time of day before. I suppose it was something to do with the bailout. Just thought have the USA moved to daylight saving time?

Bairds now have 24 different types of gold coin out of stock, including all sizes of Britannia, there are also now delays on 1oz Krugers. They are also out of all bullion decimal sovs except the more expensive 2008.

Money IMO is 1. Store of value 2. Medium of exchange 3. Measure of value. Currently I am using gold for purpose 1. and am beginning to use it for purpose 3. I beleive it is now the best money for long term saving.

BV has $900 now

Gold does not do "climb at a steady pace" it's a frisky animal.

I know the feeling That usually happens at the end of a gold bull, silver going exponential then crashing that is. Another little bit of circumstantial evidence of market manipulation - shortages.

I am amazed a how many people I come accross that would disagree and still believe the property is the best investment over the long term myth. IMO it's highly leveraged investment in a taxable immovable liability. Agree, just take a look at the last gold bull and imagine yourself as a gold holder in some of those dips, the 20 month gradual halving of price in the mid 70's must have been horrible. Leverage would have been impossible then IMO it should be this time, Junior Miners are a kind of leverage too and are for play money or the expert like Bubb IMO. We also have active manipulation unlike the last bull which increases the risk/reward profile, this is not going to be an easy bull to ride.

Miners; Bubb is an expert, there is loads of stuff deeper in this site.

And a gold bull is a bloody hard ride, Jim