Bank Runs

Discussion in 'Markets & Economies' started by TreasureHunter, Oct 20, 2019.

  1. Court Jester

    Court Jester Well-Known Member Silver Stacker

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    In any situation outside of a hyper inflationary situation cash is king
     
  2. Court Jester

    Court Jester Well-Known Member Silver Stacker

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    Start by stacking lead and brass then work your way down from there
     
  3. Jason1

    Jason1 Active Member

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    I was wondering why your so butthurt about PM's then I went through your buying purchase history and looked at the dates, and Low and behold as I suspected, most of your buys were bought at peaks, the bulk of your purchases were on peaks, you seem to buy at the worst times, Im guessing you lost a tonne of money through stupid buying? Going by your buying history alone it looks like anytime you see a climb you bought and it also looks like you missed like every single dip for that 4 year period lol. FOMO never served you very well by the looks and now you go about bagging out on PM at every chance because of you get because you let FOMO win and bought stupidly.
     
    Last edited: Oct 28, 2019
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  4. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Hard to invest your money wisely and time your buys when most of it is wasted on grog and cheap wine. Much easier to just vomit on the keyboard and post the contents for us to see instead.
     
  5. Court Jester

    Court Jester Well-Known Member Silver Stacker

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    lol i dont buy and hold i buy and flip I only started buying again earlier this year so no you couldnt be more incorrect and for a reference I am well ahead on my pm purchses overall

    i dont see silver to buy and hold to never be sold its an asset nothing more

    im not buyt hurt about pms i just think some people here need a hard reality check and they need to stop drinking the kol aide -- silver/gold is nothg more than an asset like any other one that is a lump and does not produce an income though it is not the saviour in a SHTF secnariop and is NOT real money as some here think -- it has not been for a very very long time it si almost out of living memory as such its old sentimental fools trying to cling despertly onto life and the past soon they and that stupid notion will be gone
     
    Last edited: Oct 28, 2019
  6. Jason1

    Jason1 Active Member

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    "lol i dont buy and hold i buy and flip I only started buying again earlier this year so no you couldnt be more incorrect and for a reference I am well ahead on my pm purchses overall"

    They cant have been very profitable flips considering when your purchases occurred on peaks.
    but ive read back at your past posts way back at the beginning when you were first asking about stacking, and a few month in and they didnt seem tobe much about flipping but allot of buying going on, then as the market was clearly declining most of your posts turned and seemed tobe about you getting pissed off at the target of "$30" from advice you had been given was not coming true , some of that frustration even features in your signature now. lol So doesn't sound like the guy laughing all the way to the bank.
    It looks to me a guy who paid to high and got suckered in by pumpers and is pissed off about it. Which is more your problem than PM. Its clear from when you got into stacking you bought in at some of the worst times imaginable, just after peaks and on the way down, and oddly no purchases in those big dips so not much room for any real profit on flips like that. when you see that sort of buying habit its typically an indication of some one who freaks out when notices something goes down and doesn't buy on bargains to sell on highs, and gets excited when prices are high and starts buying and is left holding them, which is how people lose money.

    the problem with your rants is not every one makes bad choices like you did when buying in that stupid period of time you were predominantly buying as a stacking Noob, so yer oh course stacking looks like a bad investment when you failed at it your self.
    Ps before you say as a defense, im on the hype train or something along those lines, Well Im not, Im not a "too the moon" guy, a long term stacker needs tobe conservative and patient to make money on it.
     
    Last edited: Oct 28, 2019
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  7. alor

    alor Well-Known Member Silver Stacker

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    it matters the A$ cash or Pound cash
    depreciation is cancer of cash
    race to the bottom
     
  8. TreasureHunter

    TreasureHunter Well-Known Member

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    How about:
    1. - bail-ins
    2. - banks' bankruptcy: one day you'll wake up and... it's ALL GONE! :oops: (I actually know people personally who were slammed by a bankruptcy)... by the way, doesn't the word "bankruptcy" derive from the word B-A-N-K :rolleyes:
    3. - bank runs: others run like wild dogs to the bank and you're sitting (like Indiana Jones after finding a treasure chest) :D
    4. - negative interest rates :(
    5. - limitation of cash use (India, Israel, Sweden) :confused:
    6. - potential divorce (the primary cause of divorce is marriage): if you put your money in the bank, she can do a -50 % "haircut", just because one day she decides she's "not happy" with you... :eek:
    7. - currency crisis (even if not hyperinflation, remember the weakening of the dollar after 2008-2019): euro crisis, dollar crisis... o_O
    8. - war (oh, my God!) :eek:
    9. - think of your elderly years: want to enjoy them, right? :cool: (there was a video on YouTube by a guy who stacked 80+ ounces of gold: quite a nice amount for a "pension")
    10. - emergency funds: healthcare reserves (even if someone else dear to you needs it)
    11. - "normal" inflation (not hyper-): imagine losing 2-5 % or even 7-10 % every year of your currency's value (it happened in Eastern Europe before those countries have joined the EU): calculate compound interest on 7 % yearly inflation for a period of 5 years

    Let's see the following inflation (not hyper-) scenario:
    7 % yearly inflation, 5-year period and you have 10,000 $ saved

    5 years later that leaves you losing 4,100+ $ of the original value of the 10,000 $...! :mad:

    It's very bad with a mere 2-3 % as well.

    Oh, and in order to make sure you're taking good care of your stack: BEWARE OF GOLD DIGGERS! :D
     
  9. Slimey

    Slimey Active Member

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    All the above examples have occurred in the past and will happen again but the thing they have in common is they were restricted to one or a few countries at the time.
    The thing to remember is that in all cases, the reference for gold remained. There was always something to compare it to. The U.S. Dollar is the benchmark and it has fluctuated but it is still strong.
    It would be a completely different story if you were to wake up one day with no internet, no newspapers, no currencies, no stock market, no futures trading, absolutely nothing at all that you could compare your 1 ounce of gold up against.....or anyone else for that matter.
    It becomes like the show Wallace and Grommit......they bought back moon cheese....very expensive right.....but what is it actually worth?
    It is that very reference which needs to be determined before gold will become acceptable again as a means of exchange and until people are confident in that reference, they won't accept it.
    Another problem is a lot of our gold and silver has a denomination already printed on it which is far less in value than the metal it is made from. For this problem to disappear you actually need a complete loss of Government. I would think that most people would place restoring the Government with the view to restoring order as a higher priority than restoring gold as the medium of exchange. That would bring us back to to the start again.
     
  10. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    A couple of points. I've said it before, after eating tin food for a week, you'll not need toilet paper but a sling shot.

    Back during the Cyprus bail-in, my siblings and I had a large amount of Euros in the bank following a property sale. Fortunately it had been drained to under 100k through attrition rather than good management before the banks
    closed for a month and then took half of everything over 100k in exchange for bank shares. Many relatives lost half their savings and also their pension funds. During the month with only a limited amount of money, pantries and wallets ran empty. Food and then cash was king!

    As an adjunct, I was in Cuba four years ago and learnt that after the Wall went down and Russia stopped subsidising Cuba, in the first year the average Cuban lost 15lbs! Again this points to food first in any emergency!
     
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  11. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Thanks for sharing a first hand account of what happened in Cyprus. Did the haircut only applied to Euro accounts or also USD accounts?

    Might not be a bad thing for the overweight. In some of my travels in south east asia, I've seen how people living on a subsistence $2 a day eat and they are slim but not starving. Can food is a luxury to these people if you look at what they eat. Refrigeration is also often not available so the meats are half rotten. A diet of rice, cabbage and fermented fish sauce and half rotten small fishes usually used for fish meal production.
     
  12. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    It was all currencies above a value of 100K Euros. There was a lot of Russian money there at the time.
     
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  13. Court Jester

    Court Jester Well-Known Member Silver Stacker

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    Again none of those situation cash isn't king
     
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  14. Court Jester

    Court Jester Well-Known Member Silver Stacker

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    again you couldn't be more incorrect even if you tried. I had less than 30 Oz of silver left by the start if this year all were coins and all have appreciated in value I have never sold a gram of anything at a loss

    Actually i am happy making 10 to 15 % on a deal and I mostly bought collectables that had value other than the underlying metal prices as you would have seen I've said several times I don't buy or believe solely in the underlying metal prices alone
     
    Last edited: Oct 29, 2019
  15. alor

    alor Well-Known Member Silver Stacker

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    bail in was to confiscate Rusky money, a revenge on what anything Russian did
     
  16. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    I recalled that this was because Cypriot banks lent to the greece government and the GCB demanded austerity. I wonder if the GCB will also demand haircut and austerity when the DB goes under in the next 2 years. :rolleyes:
     
  17. Jim4silver

    Jim4silver Well-Known Member

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    I believe that DB's demise will coincide with the next "2008" which will be worse this time because it will be multiple countries involved. Probably be the time many countries institute some type of Gov crypto (cashless) systems.
     
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  18. alor

    alor Well-Known Member Silver Stacker

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    its a fight between Frankfurt and London
     
  19. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    The world is changing. The millennials are wearing Apple watches, using Uber and car pooling. The old brands will not survive. Even a 10 year old will know this.

    Gen alpha will be worst, as they are born in the digital sharing economy. They don’t wear jewellery, only wear digital watches and ride electric scooters.

    Google is not offering to buy Fitbit for $2b for nothing. Smart devices and mobility are the future.
     
    Last edited: Oct 29, 2019
  20. TreasureHunter

    TreasureHunter Well-Known Member

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    'Revenge' for what? From what I know, the called it "haircut" and the STOLE people's money, including Cypriots.

    And they can do that anywhere. All they need is a major debt crisis. Like in the US, for instance?

    It would be a lot more ethical if they just taxed the banks, especially Goldman Sachs, Morgan Stanley and a dozen others, as well as a bunch of "speculative" investment firms. :D
     

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