Residential Real Estate may not be the best but some commercial properties will certainly hold value in a down turn if leverage isn't used to buy them or there is very little leverage remaining when the down turn comes. When big down turns come those without leverage seem to do the best, thats why physical PM's are good. If they have good "cash" positions with little leverage there is plenty of buying opportunities. Cheers Chris
:lol: mate - if one had to attempt finding an answer to every dumb question out there then you'd be paralysed into doing nothing. savvy ??
Well i do believe that these two different definitions will coincide, so either one is good... The zombies (socialists/communists) will be out in force trying to steal whatever assets you may have left over that their zombie government has not (yet) gotten its thieving paws on ...
lol - well at the rate that our farms are being sold to the Chinese (and others) - most of those 60 million people wont be from Australia...
Agreed I think there should be a ban on foreign ownership of farms in Australia. Kuwait has been doing this for some time, they know once the oil runs out they can't feed themselves after their internal booms so have been smart in securing food for the future (to our detriment). Mining is a bit harder, with the dollar value of some of these projects required to get off the ground, I'm a little too short sighted to see a solution where Aussie miners could come up with the capital to get them started.........?
Which is more savvy - finding answers to "dumb" questions that increase profits and limit losses or putting down people who ask the "dumb" questions and find the "dumb" answers? malachii
If there is a MAJOR "correction" it'll be an orchestrated one. PM's are getting more and more mainstream and there is no way in hell TPTB will allow Joe Six Pack move up the social strata.
I dont dispute that you have to do your own due diligence, but holding out until you've answered every single question that every bear comes up with is neither practical nor desirable. One should obtain a base level of knowledge and then constantly update that knowledge with further self study... this forum is one useful tool to do just that - many useful ideas and links are posted here and these can serve as the basis for further investigation... but all too often people make comments which just dont fit in with what you may hold to be true. in those cases it doesnt help to investigate those further if you know its cr@p.
So which of the questions I asked was the "dumb" one you deemed too impractical or undersirable to be bothered finding an answer to? malachii
There is no such thing as a correction in Precious Metals ,Period.i challenge anyone to prove otherwise. And like always i'll put my money where my mouth is and put up a 1 ounce silver maple if you can. I started buying gold late at $480/ounce I started to buy silver late at $12/ounce Your counter argument time starts now. REDBACK
"Correction. A correction is a drop -- usually a sudden and substantial one of 10% or more -- in the price of an individual stock, bond, commodity, index, or the market as a whole. Market analysts anticipate market corrections when security prices are high in relation to company earnings and other indicators of economic health. When a market correction is greater than 10% and the prices do not begin to recover relatively promptly, some analysts point to the correction as the beginning of a bear market". Dictionary of Financial Terms. Copyright 2008 Lightbulb Press, Inc. All Rights Reserved. The chart shows a drop of more than 10% around May - as per the definition I believe this would qualify as a correction? How'd I do?
"There is no such thing as a correction in PM's" Time frame,interpretation and valuation is everything. Financial terms and definitions made by industry experts who missed the GFC coming and don't see gold and silver as a competing money supply- can't accept that. Inflation accordingly is also viewed by the same industry as a 'Rise in the prices of Goods and Services' When in reality Inflation is an increase in the Fiat money supplyAll gold bugs understand the reality of this statement. Pm's have never lost value over the years Silver is Silver and Gold is Gold $$-FIAT Has always lost purchasing power. The purchasing power of Gold has always remained historically the same, Fiat's value against PM's is what changes. So no Maple yet,but its a great start and good input. REDBACK
PM will not always be pricey. The intrinsic value may have remained the same under normal conditions. However in light of recent financial instability, investors have moved into PM. The move of investors, whom are traditionally rooted within the stock market with a quick boom bust cycle has introduced a layer of speculation into the PM market. PM which normally moves up in inflationary times like this (gradually, not suddenly like in may), has been affected by speculation. Hence a correction can happen during speculation times, which happened in may. Hence price of PM moves with the sentiment on economy, while nothing has actually happened yet. Everyone is busy predicting the future that they start living in their own predicted future. If PM is treated just as a store of value, such boom bust cycle should not be common, save for hyperinflation/collapse of an economic region (eurozone/u.s/oceania/middle east). If global economy recovers, then the price of PM will gradually decrease. But this only means strengthening of fiat. A true correction will happen if the production output of PM increases exponentially to the point of reducing/eliminating the scarcity of PM. (A gold tower asteroid worth 50 billion tonne landed and magically stacked in my backyard).
And hundreds of thousands of African people pan for gold every day just to trade for food and commodities And in Australia during the great Recession the govt encouraged people to prospect for gold so they could eat and surviveEvery prospector knows that story A strengthening of Fiat against Fiat.Maybe.. on the money """"""""""""""""""""""""""""""" GOLD and Silver- history does not support this contention.
