Time for Gold to turn?

[lukep]

did it occur to you that most of the money is not in circulation?

Only a moron would think that matters at all. It's on the balance sheet, there is no way to stop the world from knowing it exists, and therefore our bonds are in fact worth less and less and less every month.

Pretty soon the rest of the world will stop using our bonds AND our worthless fiat.

did it occur to you that QE was there to battle deflation?

It occurred to me that such an excuse could only satisfy a moron.

Deflation is DEFINED by losing money from the supply. There is no other way to deflate a money supply but to take money out of circulation by burning it or something negative.

OF COURSE it 'battles deflation!' This "explanation" just doesn't explain anything at all that matters.

Austrian school, let me see.
Marc Faber and Rogers

Stop right there; Both of these are gold-slinging morons who don't understand the regression theorem. No wonder you lost money.

Real Austrians are at Mises. Get with the program, noob.

 

[drave]

jesus christ.. you also made a typo, '$80 million infusion' :smilie_weihn_winki:

well then i guess your question got answered, didn't it? pass that knowledge along to your employees who might not have gotten the memo. back in 2008.

 

[maybenot]

Just to return to some of the comments further up the thread asking what use is gold in a fallout: the only case I know of in modern times where a country has outright defaulted on its sovereign debt (Argentina about 15 years ago), gold was extremely valuable in trading in the fallout. It became one of the main currencies they used and held strong value despite (or perhaps because of) everything that happened.

And if you're thinking that the Argentina fallout was no big deal, from what I've read people were so desperate they were eating dogs in the street. On the other hand, you might be surprised to know that it wasn't a complete free for all either. It's not like the fed implodes and everybody suddenly wips out an AR-15 and goes all fucking Walking Dead. Or maybe we really have seen that so much we will now do that. haha who knows

The above is based on accounts I've read from Argentinians who were living there at the time. May or may not be true..

Either way, it looks likely that physical gold would be valuable to have in a fallout.

 

[_poto_]

Some wise rich guy once tossed out some advice. He said don't strive to acquire currency, acquire assets. Things like gold, real estate, businesses, etc.

I thought that was solid advice.

It's funny how some would try to paint anybody who buys a little gold as a tinfoil hat doomsday nut. There's a difference between being prudent, prepared for emergencies, planning for contingencies or being a full on nutter.

 

[mailing]

Some wise rich guy once tossed out some advice. He said don't strive to acquire currency, acquire assets. Things like gold, real estate, businesses, etc.

I thought that was solid advice.

It's funny how some would try to paint anybody who buys a little gold as a tinfoil hat doomsday nut. There's a difference between being prudent, prepared for emergencies, planning for contingencies or being a full on nutter.

Is gold an asset or a currency? can't have it both ways and gold-fags say it's the only real currency?
What this wise guy was talking about is acquiring assets that bring a return. And gold isn't one of them. Gold might appreciate in value, but that doesn't count. Gold doesn't pay you a dividend, but you have to pay for the storage. This is why gold isn't an investment in this sense.

 

[Andrew Scherer]

2, S&P at an all time high, measured by what? Dollars?

3, measured by what? Dollars?

Thanks for reminding me!

If you want to compare gold to housing prices it still looks overvalued.

 

[User9364]

Thanks for reminding me!

If you want to compare gold to housing prices it still looks overvalued.

I'm not sure gold is the best measurement, either. I'd be more comfortable with a big basket of industrial metals, with an attempt at worldwide demand adjustment. Someone can probably offer a much better idea.

 

[Andrew Scherer]

I'm not sure gold is the best measurement, either. I'd be more comfortable with a big basket of industrial metals, with an attempt at worldwide demand adjustment. Someone can probably offer a much better idea.

I know what you're saying and without going offtopic too much I will say this. There are only so many different investment classes, and you have to consider the fact that industrial metals isn't one.

Real estate and the stock market is something people put their money in the best of times.

Gold and silver is something people put their money in during the worst of times.

Even though most currencies' purchasing power is going down every year, we can still get a good idea of whats going on by comparing asset classes to each other.

 

[BlueYonder]

I know we have many "Rich Dad" admirers here. Does anybody know if Kiyosaki considers gold an asset? My guess is he doesn't because gold doesn't produce any cash flow unless it's sold at a profit.

My gold strategy hasn't changed. I'm back to collecting the gold I find in the usual places (thrift shops, flea markets) to resell when the price goes back up. Up or down doesn't matter to me. I find lots of it for less than $1.

 

[-Matt-]