Buy more gold?

Discussion in 'Gold' started by aelmsu, Jul 18, 2019.

  1. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Africa is rising simply via birth rates. All of Europe and the west is falling below critical 1.3 rate of child per couple whilst Africa is at 6+
     
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  2. madaw1

    madaw1 Well-Known Member

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    I think the yuan will play dominance role one day or Saudi riyal,but if this will happen I don't want to be around in this new world order...
     
  3. 66rounds

    66rounds Well-Known Member Silver Stacker

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    A collapse of the SD will drag down the Saudi riyal as well. They have princes waiting to start a war over the throne anyway, no chance tribal nomads will ever be globally dominant.
     
  4. madaw1

    madaw1 Well-Known Member

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    We can't discontinue this-they've got so much money,they can buy anything ,anytime. Saudi Aramco oil company listed a few weeks ago is worth more than 1.8 trillion USA-there are some others.
    So we never,never know...
     
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  5. 66rounds

    66rounds Well-Known Member Silver Stacker

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    This IPO is a sign of Saudi troubles. The coffers are running dry due to their escapades in Yemen and global sponsorship of terror. They need this IPO to refuel and rearm. If it falters MBS's head will roll.
     
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  6. madaw1

    madaw1 Well-Known Member

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    They can always increase price oil...
     
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  7. SteelHand

    SteelHand Active Member Silver Stacker

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    Don't tell Genghis Khan that :D
     
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  8. TreasureHunter

    TreasureHunter Well-Known Member

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    Cash is almost certain loss. Decay is guaranteed through inflation.
     
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  9. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    If the population in Africa continues to rise while the rest of the world ages, Africa will lead the world 100 years from now. People skills can be improved by better nutrition and better education, over the span of 1-2 generations, even cultures can be changed for the better, but there needs to be people at the end of the day. If the entire country is filled by old folks in their 60s, 70s and 80s, that will be the end of the economy and also the country very soon because the vicious cycle will set in.

    Less working adults -> Greater tax burden -> Less money for kids.
    Tax burden can be through direct taxation or indirect (higher cost of property and education).

    For Asian cultures -> Less siblings to share the burden of taking after parents.

    For single child, this means taking care of 2 x Parents. This is why a lot of single child are not married, another vicious cycle. Those who are married, usually only have a single kid because they are single child themselves.

    Some Asian parents demand substantial financial support from their kids, which ends up delaying their marriage, women who get married in their late 30s and 40s are unlikely to have kids themselves. Most remain single. Those who have kids will not be able to have more than 1-2 kids because the grandparents are already too old to take care of them.

    At the same time, people are living longer and longer. In the end, there will be strange 3 generation families comprising of 2 sets of grandparents in their 90s, grandparents in their 70s and a single kid in his or her 50s still working.

    I can go on and on....one thing leads to another, non-stop vicious cycle which there are no easy solutions.
     
    Last edited: Dec 22, 2019
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  10. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    Thats hilarious. Africa will never lead the world in anything.
    Someone else might exploit their resources but it wont be them.
    Evolution hasn't been fair to them I guess you could say.
    Even the ones that were brought to America hundreds of years ago show little progress.
     
  11. TreasureHunter

    TreasureHunter Well-Known Member

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    And behold: gold started rising again. Just before the holidays, unlike in many previous years.

    More expensive gold, more expensive silver.
     
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  12. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    I think there was a consensus that we should buy gold and silver before the end of this year, but somehow the discussion became more and more pessimistic. This is why formulating a strategy and a plan is important and the need to follow through regardless of what happens to the spot price.

    I've already decided to buy a certain amount of investment gold which I did early this month, and to cost average silver along the way. At the same time, I didn't buy as much as I wanted in case there's a deflationary event, however unlikely, that would slam down gold and silver.
     
    Last edited: Dec 23, 2019
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  13. TreasureHunter

    TreasureHunter Well-Known Member

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    One could regard PM's as:
    1) safe haven against economic crises/currency hyperinflation
    2) safe haven against gradual inflation ("natural inflation" that occurs in a "healthy" economy)
    3) as a pension fund (few people ever state this)
    4) as a refuge in case you forgot to sign a prenup with your wife!!! :D
    5) investments for the sake of gaining (yes, you can make money if you sell when price spikes!)
    6) collectibles: coins to collect etc. (for fun/hobby)
    7) as a means to diversify savings/asset portfolio
    8) as a way to save money/funds (for vacation, etc) + you don't pay banking fees!
    9) as a way to save funds instead of keeping it and banks and pay negative interest rates

    There are countless reasons to stack. Some stackers already have OCD-stacking disorder. But for some wicked reason, it will pay off in the end!
     
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  14. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    Not to mention it has risen 400 percent since it was money and will continue as our economies are destroyed without fail.
    The stock market gains over the same time period dont even come close. It's a sure thing.
     
  15. TreasureHunter

    TreasureHunter Well-Known Member

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    I am not sure that if a "total economic collapse" occurs in Europe-North America-Australia, that it will be a super-hyperinflationary one.
    Perhaps the USD/EUR won't get devalued by 100,000,000 %, perhaps not even 10,000 %.

    Who can calculate?

    I don't think hyperinflation will follow "rigid rules". What I mean is that currency's devaluation won't happen according to a strict formula.

    Nor will the GSR return to "where it should be", just because it's rational and that should happen according to "the formula".

    Remember: the markets and people are irrational. The rational element is less than the irrational one.

    I can imagine a massive inflation, potentially 500 % or 1,000 %, 10,000 %, 100,000 %. We don't have to become Zimbabwe or Venezuela. A tenth of what they have could slam us like an economic apocalypse.

    It's easier to become Romania, Bulgaria or Ukraine post-communism.

    Also because the western world does indeed have strong industry, apart from Eastern Europe's "potato republics" who had almost nothing competitive after the fall of communism.

    Inflation could be controlled, more or less. In Romania it was a bit "slow-motion" for like 15-20 years. Almost like compound interest :p

    In Bulgaria there was a sudden spike of 1,000+ % in 1997.

    Let's imagine a "softer collapse" with the following prices:
    bread: 50 $, can of beer: 100 $, pizza at restaurant: 800 $, gasoline (1 L): 120 $

    The good news is that during these times hookers tend to cost less (about as much as a pizza) and gold's price tends to climb very very very high :D

    You can buy an apartment with an ounce of gold, pay a hooker with the price of a pizza and have the luxury of enjoying an expensive beer once every 6 months. :D
     
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  16. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Trump has already sealed a deal with Xi, so the worst, by that I don't mean the actual state of the economy or stock market, but the political gridlock, might be over for America and China.

    Next year, all eyes will be on Deutsche bank, Germany and Brexit.

    After HK, Xi realises that having Trump as president is better than a Democrat. Social stability comes first for China, economy second.

    The dollar won't be dropping much in 2020, maybe sideways or even go up slightly if there's a problem with the european banking system.
     
    Last edited: Dec 24, 2019
  17. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Ok, so in the end, gold didn't drop back anywhere near to $1400. The lowest (day close) was $1452 on the 12th Nov and $1453 on the 28th, 29th Nov.

     
    Last edited: Dec 24, 2019
  18. TreasureHunter

    TreasureHunter Well-Known Member

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    So, it looks like the bottom was either in or, we'll witness a small dip before New Year. Then it will push the pedal to the bottom!

    It'll be all the way up to 1,600 $. My feeling is that it will be reached already in January-February.

    And if Brexit-Trade War-Trump-Deutsche Bank play the game further, we'll see even higher prices.

    Stack before new year if you can. If your local dealers will still sell gold.
     
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  19. JulieW

    JulieW Well-Known Member Silver Stacker

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    Which brings us full circle.

    At which price will you be pushed out of buying?

    Or will you be buying smaller fractionals and continuing to stack.

    Or will you still sell, knowing that the endgame is in play?
     
  20. Peter

    Peter Well-Known Member

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    The only sure thing about Trump is that he's erratic.I think there will be no trade deal.
     

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