Biggest market crash in HISTORY coming, HUGE debt bubble, danger ahead

OC, 5 years later... http://forums.silverstackers.com/message-135187.html#p135187

 

I always catch cold before big economical events. The worst ones I caught in 1998 and 2008 lol. And the same happened yesterday...
I even made a little video with my predictions so if something very bad happen I can be next Casandra

[youtube]http://www.youtube.com/watch?v=ELspoqIEjW4[/youtube]

 

Completely wrong of course. You have conflated short term growth with long term preservation. Gold can obviously decline in value relative to fiat or various physical assets, but as a store of value though economic and societal meltdowns it has few equals. An ounce of gold 500 years ago is an ounce of gold today. There are plenty of examples of other so called assets that are worth nothing today.

 

As they often say, Gold is the only REAL money, all the others are just promises on a bit of paper.

OC

 

yeah and don't forget silver

 

And gold is the promise of... a tiny lump of metal?

 

No, when an ounce of Gold is worth 100 TRILLION Australian dollars, I know who will be able to BUY food while you cannot!

Your family will starve, and mine will eat!

YUM!

Let them eat cake!

OC

 

Gold is not a promise but a precious metal that always worth something. Money is a promise.

 

You will be long, long gone before an ounce of gold is worth 100 trillion anything.

Out of curiosity, would the cake be gluten free?

Explain.

 

I think both are right and wrong.

Gold is a good store of value for a a given period usually during economic concerns - In fact any asset class I can pick a time and say what a great investment or crappy investment that was.

The company I work for, the shares was worth 30c when listed dropped to 13 cents tens ago, now it is worth $9 with 8 billion market cap.
But it was also worth once $12 plus a share at one stage. Some joe public bought shares at $12.93 suxs to be them.

5 years ago you would have paid 1800 dollars for an ounce of gold 5 years, it is still worth $1800
2 years go you would have paid $1300 and it would be worth $1800 - giving you a profit of $500 or you could have bought 1.4 ounces.

5 years from now an ounce could be worth $3000
10 years from now gold could be worth $1000


5 years ago gold was about $1800 Aussie
10 years ago gold was about $800 Aussie
20 years ago gold was about $500 Aussie
how much was houses 5, 10 and 20 years ago, and the same house now?
20 years go ASX all ordinaries index was 2500

It is all about timing and catching the ride.


Of course I am basing on the fact I invest and save money so I can afford luxuries that isn't money or gold.
But even if the goal is to die with the biggest pile of gold surely selling high and buying low holds true.?

 

Note worthy: what is the meaning of money?

It affects every aspect of our lives, is often said to be the root of all evil, and the analysis of the world that it makes possible what we call "the economy" is so important to us that economists have become the high priests of our society. Yet, oddly, there is absolutely no consensus among economists about what money really is.

Some see it primarily as a commodity traded against other commodities, others as a promise, an IOU, and still others as a government edict, or a kind of ration coupon.

But who would issue these? Some central authority? That's the next problem. After all, another definition of money is an IOU, a promise money is just the way we produce promises that can be precisely quantified and therefore passed around.

https://www.theguardian.com/culture/2011/dec/16/note-worthy-new-money-graeber

 

I meant you explain it, not a copy paste job.

Where on the Aus Dollar does it say it's a promise? I think you got it confused with the Aus Pound which was a promissory note.

 

I can put that copy and paste I posted into my own words if you like but it will have the same meaning

 

Actually I haven't conflated short term growth with long term preservation. If you read what I said you would see that I specifically steered away from that. I never mentioned the word growth but rather what you could buy then compared with what you can buy now - i.e. it's store of value.

To say an ounce of gold 500 years ago is an ounce of gold today is a misleading statement. Other than the obvious you can do nothing with an ounce of gold except trade it for something else therefore it is the ability to trade and the quantity you can trade it for that is the important measurement. Would the ounce of gold still purchase the same amount of land, food, protection, clothing etc 500 years ago than now? Maybe but to be honest I'm not storing my gold for use in 500 years time. I need it to hold it's purchasing power over the next 50 years time. After that I probably don't care.

Don't get me wrong - I still keep gold and it is an important part of my long term wealth creation/maintenance strategy. But to blindly say that gold or precious metals are the only way to maintain your long term wealth even in times of trouble is closed minded and quite dangerous. In the extreme examples (zombie apocalypse, end of the world prepper scenarios etc) I'm not swapping my productive farmland, food, seeds, machinery, security measures etc for any amount of gold so gold won't have preserved it's purchasing power at all.

malachii

 

Where will you be buying the food from ?

 

An ounce of gold can buy you about 20 of these on ebay:


http://www.ebay.com.au/itm/Lot-10-P...582953?hash=item5d63d0bda9:g:hQ0AAOSw2GlXEab7

 

Not 500 years, but more than a lifetime:





Interesting to see the latest US crash compared to Oz house prices holding strong in gold.

 

So going from your chart - would you not agree that historically it is not a good time to swap your real estate for gold? At best you would argue that houses in Australia are slightly above the average gold to house ratio (high point to low point is approx. 620 points so mid point would be somewhere around 350-400).

And even more so in the US. Gold ounces to US real estate ratio is almost at it's lowest despite the fact that most places in the US are at record house prices or within a few % points.

malachii

PS - Just as a disclaimer I'm not suggesting that US house prices are cheap because I don't think so. However I would not be swapping houses for gold at the moment. There are better things to swap them for.