A few things to keep in mind. Something like 80% of US dollars are traded outside the US. The US has the most foreign creditors for its debt than any other country. If the US prints money to pay down its debt, it pays this out mainly to foreigners. This will ease the threat of inflation in the US itself, because the US has the whole world in which to diffuse their printed money. Therefore, massive money printing may not actually cause any big inflation in the US. If the US can get away with this enough to pay down their debt to a serviceable level, they would then be able to raise interest rates again. As soon as they take their foot off the money printing pedal, the world will deflate - that's what it wants to do. that's where the entire global trend is headed. So it is possible that the US could print away a large portion of its debt without creating any massive inflation in their own country. What this means for us stackers is that be may just see a "bump" instead of a "spike" in PM prices as we hope.
Thanks for bringing in the discussion on the possibilites for Pms,but ,to my mind,nobody knows what will happen.I think that there are too many factors and wild cards to be able to predict what will happen in the future in this. You may be right with your analysis.I wouldn't be surprised at all. But you might well be wrong. In uncertainty I'll take gold.
In uncertainty, the most prudent thing would be to diversify. A bit in PMs, a bit in cash (maybe Hong Kong dollars?), a bit in some solid stocks, maybe some property (but not in Australia ATM).
This is exactly right. We all come up with scenarios and ideas that make PMs attractive to us, when in reality, the bankers are trying to keep the fiat system going by ANY MEANS POSSIBLE.
In ordinary times,Yes,but I'm a shtf believer:cash and gold is best,and the cash to buy cheap gold. And the present times only confirm SHTF beliefs,no? The difficultly I have with you arguements is they assume a relatively stable background.
This is how I think things would go. Old video of last crash,Interesting 2 minutes in. You've probably seen it. http://www.youtube.com/watch?v=m_atOvrTtT8&NR=1
I am just seeking preservation of wealth and currently I see nothing as safe as gold. In relation to deflation, can anyone help with gold price in YEN over the last 20 years? Because that is the deflation scenario. Of course Euro printing could assure inflation of course. The thing is that the whole system is faith based and killing PM mania keeps the faithful in the pews and the whole game going. I just don't have that faith.
depends on how long they hold off printing. If we had more printing now commodities would reverse pretty quickly.
I'm not sure about "buying more" but gold certain will at the very least maintain its purchasing power against other goods and services. Gold always has and it always will retain its purchasing power. Under conditions of high inflation and hyper inflation it will actually buy a lot more goods and services than before, but under deflation it will at the very least still buy the same as its done over the ages. You keep your fiat mate... go ahead
well then it would seem that PM "spruikers" know exactly what they're talking about :lol: bullshit! the pound was backed by PMs for the majority of its lifespan. Got any idea why it was called the pound sterling? :lol:
Why??? do you have to sell in today??? :lol: i'm not worried at all ... in fact i'm sleeping like a baby at night while the Eurozone collapses - it's all part of the demise of the fraudulent fiat system and the welfare state. The bill has arrived for Europe... The rest of the west will be following soon enough!
Its different down here though. The banks said they had contingency plans in case europe goes fubar. They didn't say what they were but I'm sure it'll be good. Probably got a conduit to the fed set up.
it is well hidden in the open, "sterling silver is not money but gold is", but sterling is still money so is Pounds Sterling so the conclusion "money silver" is "not money" because sterling is not money, or rather silver is not money. well you know how to get around the circular logic again. something is really wrong with the argument that silver is not money, since money is not money, paper is.
I don't know about the other 4 scenarios - but my family has lived through scenario 5. They were Prussian engineers living in Shang Hai hired to design the road system prior to World War 2. They were very wealthy with a large mansion, beautiful grounds and dozens of live-in servants... I've seen photos of the house and staff and it's some serious Jane Austin shit... They also had a reasonable stash of gold bars which they kept in the family safe. During and after the war they lived through Japanese invasions, German occupations, British occupations, and eventually the communist revolution - at which point a tank unit arrived at their door step and offered them 24 hours to surrender their home and everything they owned to the government. Which they promptly did, leaving with nothing but the clothes on their back, a T-chest of belongings, and their carefully hidden gold bars which they disused in a sleeping mat. They managed to escape the country, pay their passage out, make their way to Australia, and buy a comfortable home and set themselves up here.... If there's one thing their story has told me - it's when all hell breaks lose, the one thing you can depend on to get our out of a pinch is some gold bars. If World War 3 breaks out - you will have bigger things to worry about than the spot price, but I'd imagine you'd also be damn thankful if you had a safe full of PMs.
Nothing will now go wrong with silver. As of today, I've finally offloaded my body weight (almost) in the stuff. Given I'm now only small in silver, I anticipate it going to the moon. But I'm sure my builder will be happy that he gets paid. :/
