SMH-Gold and silver are going to crash; they're a bubble (TOWARDS END)

'Tsunami' to hit Australian real estate September 11, 2011 - 7:27PM
.
" The world will experience a second, deeper downturn" ... Harry Dent.
Australia's love affair with property is about to turn sour as an "economic tsunami" looks set to hit world markets, American economic forecaster Harry Dent says.

Mr Dent, who arrived in Australia on Sunday, predicts the world will experience a second, deeper downturn, which will arrive between the beginning and the middle of next year.

Starting in Europe, the downturn will spread to the US, China and eventually Australia, he said.

Advertisement: Story continues below "Australia is probably the best place in the world to survive this, but we do think Australia will not escape as well as it did from the last crisis (in 2008)," Mr Dent told AAP.

At the centre of the coming debt crisis is real estate, the forecaster says.

"People in places like Sydney or Tokyo or Miami say, 'Hey, real estate can never go down here, we're a great place, everyone wants to move here, there's not much land for development', and what I say is that is exactly the kind of place that bubbles," Mr Dent said.

"Outside Hong Kong and Shanghai, Australia is the most expensive real estate market in the world compared to income."

Mr Dent said Australia's house prices would return to late 1990s or early 2000 levels.

Driving all these changes is simple demographics, specifically the peak of the baby boomers' spending, Mr Dent said.

"We predicted this (current) downturn in the US 20 years ago," he said.

"We said that in 2007 the peak number of baby boomers will reach their peak spending. They would have bought all their homes and then they will start saving for retirement ... and that you are going to see this downturn."

The drop-off in spending will affect everyone, even mighty China, Mr Dent said.

To survive the incoming "economic tsunami", Mr Dent said investors should sell their excess real estate and buy up assets in US dollars.

"Gold and silver are going to crash, they're a bubble," he said.

"Once we write down all these crazy debts, we are going to destroy a lot of dollars that were created in the boom and that makes the (US) dollar a lot more valuable."

Mr Dent is in Australia to promote his book, The Great Crash Ahead - How to Prosper in the Debt Crisis of 2010-2012, and will be speaking at the Secure the Future conference in Sydney and Brisbane in October.


Read more: http://www.smh.com.au/national/tsun...real-estate-20110911-1k413.html#ixzz1XeD7GXPv

 

Buy US dollars, lol. His creditability goes to zero after that statement.

Good advice there.

Edit: What is it with all these experts making bold predictions on gold / silver while still in the dream where fiat is still something of value. I guess once the world really understands fiat currency and its intrinsic value. They would understand why holding toilet paper USD will make you go broke. The Feds and the elites have truly stuffed up peoples perception of value. I can't wait when the world wakes up.

Slam

 

He is right in a sense... gold and Silver are in a bubble. However, this bubble is only in its infancy and only beginning to inflate...

The writer also states:
"Once we write down all these crazy debts, we are going to destroy a lot of dollars that were created in the boom and that makes the (US) dollar a lot more valuable."

Well..... l for one wont be holding my breath!!!

 

Wow......thats a different point of view......gold and silver in a bubble so sell???.......buy up assets with USD???.......thats not my opinion but I do believe we should be selling unwanted realestate.

 

It's April the 1st, right?

I realise he's saying buy assets in USD, but I don't see the US coming out of this problem with everything intact - nope, I'll hug my silver & gold tonight, thanks very much, I'm content to stay riiiight where I am

GP: I hear your comments, and understand. For my money, though, I wouldn't bet on the existence of the USD as we know it today once all the S has finished HTF.

 

Jim Rogers is long the US dollar also, I guess in the interim while things are still playing out.

Source: http://www.cnbc.com/id/44452871

 

You folks may be able to help me here with this statement:

"Once we write down all these crazy debts, we are going to destroy a lot of dollars that were created in the boom and that makes the (US) dollar a lot more valuable."

Wasn't it Hayek or Rothbard who stated that dollars created cannot be destroyed and the only way to avoid that situation is to destroy the currency altogether and start again?

 

mmmm.. interesting, i have a certain level of respect for mr dent and his views. I would prefer to rely on what he ACTUALLY said than what the shlubbs at SMH reported he said.. anyone got a full transcript from where they pulled the "Media report"


i suppose in his book......doh...

 

I did sell my real estate AND I bought assets in US dollars - gold and silver.
Thanks for the advice, bro!

 

H Dent is not much use in this area, good for the population cycle only, demographics.

80% Silver and 20% Gold are where everyone should be in. as you all can see even the safe heaven Swiss Francs also give way to Gold and Silver.

US Dollars, you can forget it, just get the pre-1964 Silver Coins may be can save you. "JUNK BAGS a wheel barrow full"

In a World wide Financial flood, you will need the Ark of safety Silver and Gold to survived this one.

the only bubble there is today is USD.

 

WHO IS THIS DILL?

 

Interesting, look at today's stock market drops.

Gold and Silver is still trading in a tight band, very similar to 3 weeks ago.

Would be interesting to see if it stays like this when the US markets open.

Slam

 

I loved that incongruous sliver of "gold and silver are in a bubble"

at no point is there any logical connection to the rest of the article

at no point does it offer any theory as to why US assets should be bought

nor does it explain why Australia should do relatively well, but face a "tsunami"

nor does it explain the metaphor

it seems to imply that the rush upwards is yet to come, by saying the tsunami is coming

that would imply that the tide will go out first, then there will be a huge push up which crushes all