romans holiday

Hi Steve Netwriter,

I see you are a fellow kiwi! I am heading to NZ soon to stock up on silver and gold. Was thinking of using the New Zealand mint. Any suggestions?

Phew... just got through reading this post. Was exhausting but worth the effort.

I am new to this site though have been familiar with HPC for some time. I am considering asking the moderators there to re-name it to something like G8 crash, in order to re-invigorate it, but I suspect that will not go down well.

Such issues seem to be freely discussed here.

To add to the conversation, I noticed a couple of pages back gold being compared to oil, dollars etc, with predictions were it could possibly go. I finally got round to reading Peter Schiffs book "Crash Proof" and was impressed with his use of the DOW/Gold ratio of the last century. After each boom in financial assets and with each bust [with each one going progressively higher than the previous] the ratio of the Dow to gold has returned to 1:1. I think most here would agree that gold priced in dollars is irrelevant if it is in terminal decline. The Dow is now I think half way down from its peak against gold in 2002. Where it was at 44 to 1, it is now somewhere around 14 to 1. This is the ratio to follow I think. If the Dow stays around where it is, we have around $12,000 for Gold. Perhaps the Dow will drop to 5000. Then again, The Dow could possibly go to 36000 if we had a chronic/ hyperflationary outbreak.

I think the point is we need to really break our habit with dollar pricing things. This involves a paradigm shift, which most here have already evidently made. Some commentators refer to a paradigm shift in the world, which really means to say the world has changed. I think this word is more aptly used in referring to our own "world view". The volatility of currencies, commodities and the general price of things will confuse the hell out of people in the next few years, that is, if things unfold as I think they will. People will continue to be confused; tossed by this wave and blown by that wind, in so far as they are stuck in the old paradigm of the dollar.

I believe the Dow/gold ratio will provide an effective compass when navigating the financial storm to come.