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In a global depression where do you park money such that these conditions are met?

 

Many think that in a global depression cash would be good. Due to fears of [global] recession, many investors seem to be going into cash now. The problem is that last time round, in the 30's, cash was backed by gold... by real solid stuff with a sound history of value. This time round, no such luck. It is best to go straight to the source and hold a portion of your worth in gold and silver.

 

If there is a depression all paper assets, including the dollar, would deflate.

 

Edit to add: Dollar deflation would have an inflationary effect in prices.

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I love all this recent fear and angst... blood on streets and all that!

 

Topped up yesterday with silver, and have funds to double up - which I'll do if it ever gets down as far as USD10 or so

 

And today I put my first toe in oil ETF and oil majors, again leaving funds to double up these bets 2 or 3 times upon each USD 10 fall in PoO (should that actually happen)

 

I feel sure that 5 years or so from now this investment strategy will be very profitable, and so am really quite comfortable about whatever happens these next few weeks/months: falls will allow me to do the double ups, rises will make me money

 

Believe in what your brains and your bones tell you guys and gals, and don't believe the spin :)

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Todays market wrapup by Gary Dorsch on FSN is interesting. Seems to suggest its the Saudis and the Kuwaitis pumping petrodollars and oil into the US to bring down oil prices, in order to influence the US election and get their preferred (hawkish) republican candidate into the whitehouse.

 

If that's the case, we can expect gold/oil/commodities to remain under pressure until the election, then watch for the possible HUGE reversal, as this gets unwound.. It would certainly explain the La-La-goldilocks-topsy-turvy market in the US right now, that seems to have thrown all TA out the window. I mean the OVERSOLD readings on the HUI right now FFS!.. and no bounce to speak of!! Wasn't nothing supposed to go up or down in a straight line? :blink:

 

It makes good sense.

They went way over quota to force the oil price lower,

when Bush visited the Saudi king and asked for help.

 

They may now accept a temporary freeze in quotas until after the election

to see if they can get the job done- and McCain elected

 

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Many think that in a global depression cash would be good. Due to fears of [global] recession, many investors seem to be going into cash now. The problem is that last time round, in the 30's, cash was backed by gold... by real solid stuff with a sound history of value. This time round, no such luck. It is best to go straight to the source and hold a portion of your worth in gold and silver.

 

If there is a global depression all paper assets, including the dollar, would deflate.

 

Edit to add: Dollar deflation would have an inflationary effect in prices.

 

 

I think you are right to say that putting 10% of net into physical gold would be a good way to go-If nothing else you can give it to the kids-however talk of 'going all in' just doesn't sound right with respect to investment decisions.I am going to average in over the next 6 months-lets see what happens after the election.

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I love all this recent fear and angst... blood on streets and all that!

 

Topped up yesterday with silver, and have funds to double up - which I'll do if it ever gets down as far as USD10 or so

 

And today I put my first toe in oil ETF and oil majors, again leaving funds to double up these bets 2 or 3 times upon each USD 10 fall in PoO (should that actually happen)

 

I feel sure that 5 years or so from now this investment strategy will be very profitable, and so am really quite comfortable about whatever happens these next few weeks/months: falls will allow me to do the double ups, rises will make me money

 

Believe in what your brains and your bones tell you guys and gals, and don't believe the spin :)

 

Hell yeah!

 

Word up everyone - gold and silver going cheap! Grab it while you can.

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er . . . ok this is starting to get a bit scary. Silver's into the 10s, crude's approaching the ton and the dollar's on steroids. I know, I know - the fundies remain the same but how low can gold go ? :unsure:

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I have to say I bought to hold with a long term view but the last few weeks have been devastating, but hey fcuk it them gold and silver coins are still nice to touch and look at. B)

 

Every cloud has a 'silver' lining and you have to keep your glass half full. :rolleyes:

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I have to say I bought to hold with a long term view but the last few weeks have been devastating, but hey fcuk it them gold and silver coins are still nice to touch and look at. B)

 

Every cloud has a 'silver' lining and you have to keep your glass half full. :rolleyes:

 

Just signed up after having been on the other place for a few years. Haven't had a chance to read all the gold threads here yet, but one thing that should be noted, as a percentage drop, what has happened in the past couple of months is less than the drop that happened in mid-2006. People seem to forget that. Last gold I bought was at circa US$850 towards the end of last year...which was then about £404. In terms of GBP and AUD (the 2 currencies that affect me), it has still been a good investment. Having said that, what has been going on the past few days (not just gold and silver) since the FM bailouts is puzzling...and I think further falls are possible in the near term.

 

One question that I would like to know the answer to: has anyone tried to buy allocated silver at the Perth Mint in recent times...and if so what happened?

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I have to say I bought to hold with a long term view but the last few weeks have been devastating, but hey fcuk it them gold and silver coins are still nice to touch and look at. B)

 

Every cloud has a 'silver' lining and you have to keep your glass half full. :rolleyes:

 

Yes they have been devastating but the physical prices aren't down as much as the spot prices. If I had kept the money in the bank and then bought now I wouldnt have made much difference. I notice eagles are cheaper but phils have gone up.

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Just signed up after having been on the other place for a few years. Haven't had a chance to read all the gold threads here yet, but one thing that should be noted, as a percentage drop, what has happened in the past couple of months is less than the drop that happened in mid-2006. People seem to forget that. Last gold I bought was at circa US$850 towards the end of last year...which was then about £404. In terms of GBP and AUD (the 2 currencies that affect me), it has still been a good investment. Having said that, what has been going on the past few days (not just gold and silver) since the FM bailouts is puzzling...and I think further falls are possible in the near term.

 

One question that I would like to know the answer to: has anyone tried to buy allocated silver at the Perth Mint in recent times...and if so what happened?

 

 

Welcome Doh.

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I’m reminded of one of CWR podcasts last year with Paul van Eeden. In the first half of the show he said to Frizzers that we shouldn’t care what happens to the gold price in the short term because in the long run it’s going much much higher. In the second half of the show Frizzers mentioned this to Dr B who was a little sceptical of this argument and queried how much pain people could take. This is a very testing time for those of us who hold gold. Still, maybe it’s not so testing since there are plenty of other things falling at even sharper levels (e.g. Lehmans!).

 

At the end of the day, who is selling gold at the moment and where are they putting the proceeds? And why?

 

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Ask yourself: who is buying all this stuff?

 

For every seller of gold and silver, there is a buyer. I don't think it's the little panicked guy who is buying right now. It's the big & clever guys. GOLDman Sucks cover their shorts frantically, China or someone possibly a huge physical buyer at this stage.

 

Isn't that clever: make China believe the USD is strong again, at the same time giving them the chance to gobble up shed-loads of gold & silver without raising suspicion? :lol:

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Jeez GF - thats getting mighty close to 750 - and its looking very like a double top has happenned

Painting a chart. Ben & Hank succeeding 100% in screwing the little scared investor over.

 

I stay invested 100% in physical, and will buy more on dips when I have cash ready. No margin, of course.

 

EDIT: When gold hit $1,000 I kicked my @$$ because I hadn't bought more below $700. Guess what? TIME MACHINE! Looks like the opportunity of the decade to me. And this with the great re-assurance that all the fundamentals are better in place than ever before. It's sort of a dream come true. :)

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