Value of the dollar

[Fusion]

Fuck currency. Hoard physical gold.
You guys seen what's happened to the ounce in the last couple days?

[mrsleeve]

^

yup thing is gold is a bit inflated right now, silver is still well below its historical correlation to gold. Silver SHOULD be a $100oz based on historical data, but its not?

I would not be buying into gold right now, I would be selling it though if you had some you wanted to get rid of.

[DTM190]

Dont you guys have some massive amount of gold stockpiled in a fort somewhere?

[Farbin Kaiber]

If you ask Ron Paul, no. If you ask the Federal Reserve, yes, lots.

[mrsleeve]

Dont you guys have some massive amount of gold stockpiled in a fort somewhere?

used too, till the frenchies raided it in the 70's, and the bulk of that was confiscated from US citizens in the 30's


I am betting there is some Gold and Sliver in there, but I am also willing to bet that its not nearly as much as the FED say or what we would like to think is there.

[Sailor37]

the fiat money system (which is what the US system is today) is kind of wierd, as the money is worth pretty much what the country's financial system claims it's worth, unlike being tied to a standard, like the gold standard before Nixon. Do some reading up on this, and you'll be thoroughly confused--as I think it's intentionally designed to be.

[Sailor37]

I would not be buying into gold right now, I would be selling it though if you had some you wanted to get rid of.

Gold or foreign currency (russia or china), if you want to protect your money.

[mrsleeve]

^

Not convinced of that, Us treasuries are still the "Gold Standard" and with the shit going on in the EU, there will be a flood of money running to them from over there. Still going to be a good place to keep your money. The way china manipulates it currency, would keep me away form that. Austrailan or Canadian dollar may be better ones to look at, Especially the Canadian, oil/resources exporter, did not partake in the house bubble, has a fairly stable govt, and good credit.

I prefer Silver, Brass, lead, food, and other tangibles right now just in case. My money becomes worthless, we will be ok for a long enough to figure out the next step.

[Farbin Kaiber]

Physical assets are a much better option opposed to a financial currency that can tank. Gold/Silver isn't gonna end up being worth less than it is now, unless some PopSci types come up with a way to make gold out of Girl Scout Cookies. There is a limited amount of the product, and that won't change. Unlike Alan Greenspan saying the US won't default because we can print more money. And, that would devalue the buying power of a dollar even more.

[mrsleeve]

^
I see what you did there ;) what better way to turn Cookies into 15b in profit.


and yes I agree physical assets right now are much better. I have 4 cases of middle shelf whiskey for barter in my stash of goodies.

[rwh11385]

Gold or foreign currency (russia or china), if you want to protect your money.

Why would you buy a currency that is facing a three-year high of inflation? (And somewhat uneasy future of the economy, can they keep up their pace?) Or the other one with historic inflation issues?


There's a big difference between fearing the devaluation of currency and investing in physical assets (even if somewhat overly concerned versus reasonable) and completely ignoring the flexibility of fiat money and it's ability to adapt to demand for currency. (i.e. economic growth not being limited by a set amount of physical resource)

[Fusion]

^

yup thing is gold is a bit inflated right now, silver is still well below its historical correlation to gold. Silver SHOULD be a $100oz based on historical data, but its not?

I would not be buying into gold right now, I would be selling it though if you had some you wanted to get rid of.

Yeah, that's what the n00b "economists" kept saying when gold was under 1500, when I bought some plates.
Then when it got past 1500, they were like "Ohhhh ok, but 1600? No way."

Better believe a horoscope than today's wannabe market experts.

For the record, my guess is 2000 by Christmas. I'll check back here in 4 months and either acknowledge my fail or profit. FTMFW.

You guys ever read about the questionable physical gold reserves of countries and that their publically stated amounts may be way over the actual amount? Can you imagine what would happen if this was audited and publicised? My guess is gold prices would fold twice or more.
Plus when China finally acknowledges their fake GDP, that's another ~150$/ounce over a couple months.
I think the only way gold could drop would be if major manufacturers stopped producing things that require gold (all electronics, cars, etc. etc.) or if someone flew out to the moon and magically found 6 quadrillion USD and an alien mine with a bazillion tons of pure gold in it.

I checked with my gold broker today and most of their 999,9 is sold out, restock is guessed to take a month.
Oh and screw silver (I don't invest because it has VAT), have a look at Platinum a where you can get it if you do some manual work.

[nando]

the gold bubble is far more about fear and emotions than fundamentals and markets (thus the odd gold/silver rift - silver is probably closer to a fundamental market value). People are scared of another 2008 crash. They are skeptical of our leadership, they are fearful for their futures. Some of it is justified, but much of it is quite irrational. Unfortunately, a good deal of our economy is based on confidence and emotions. People feel safe owning gold.

I wouldn't be buying gold here either, but if I had it I'd probably hold for a little while longer because confidence will take a while to come back (perhaps years). I'll be buying beaten down equities with lots of cashflow, low debt and dividends. Opportunities like the last couple weeks don't come around often, in fact it's been over 2 years since the last fire sale.

it's typical for people to follow the herd and buy what they feel is going to go up forever. Then when the herd changes direction and everyone is selling, they get scared and dump it. it's the same for gold/stocks. Right now the herd is chasing gold. How long will it last? Who knows..

the logical thing to do would to buy low and sell high. As we can see though, our emotions get in the way..

[Vedubin01]

so you are saying the market in the next say year will not see the crash of 2008?


Wanna Bet?

Gold hedges against inflation and with the way the Gov is spending and printing money Id say its more than just speculation or nerves that are driving up the price of gold. You should see who the largest buyers of Gold are lately.

[Fusion]

Not a bubble, bubbles burst. This is the same situation as fall '08. The price of gold is going up, it probably will drop, but only slightly, maybe hold the price, but certainly won't drop over the longer run.

My opinion is, if you have cash you don't need, like saving up for a car or whatever, buy physical gold. It's safe, and you'll probably make a nice percetage over a half or one year, which you wouldn't make with cash in the crooks' vaults.
But yeah, right now it would be better to wait for the slight drop (who knows when...) and jump on the wagon.