The first guarantee was to prevent bank run, which kind of succeeded. Now, that they have assessed that there is "less" volatility and that people are happy to not do a bank run, they are lowering the guarantee. this guarantee costs government so indefinite guarantee is not in everyone's interest. @BBQ Eftpos? Easier than carrying cash for me. Unless you live rural I guess.
jpanngy, Yeah, great...let some third party know everything I buy and spend more time at the checkouts while I do my card thing. No thanks But yes, back on topic...sell your silver cheaply here
ReturnToZero where people should be & where they are, in the vast majority of cases are two entirely different things. I can only tell you what i know first hand speaking with these people & it wasn't just a few, the company i was working for let go of over 800 people. The first were those at or closest to retirement age a few were even way past retirement age but they just loved what they did. As for the Govt, its been my experience what the Govt does is ultimately for the Govt best interest but that's my opinion & like myself & everyone else your entitled to your view point also.
Because they believe the panic from GFC1 has subsided enough for them to lower the the guarantee a few notches without everyone panicking. They are lowering - not removing. Not really, it's mine. We don't live in a country run by a dictatorship, it will be utterly impossible for the bank to just take your money. Anyway signing out this for for sure - don't want to derail. Very true. It probably doesn't help that they don't educate enough on the Super situation either.
Yes, because it's all a scam designed to net THEM something... Sorry for being too cynical, but that's how it is, generally...with everything the gov does. It should be in our hands, 100% completely, what we do with our money. The Nanny State should have no say in it.
Very true education is the key, doing you own research & not relaying on one source or getting court up in the hype of any one thing is an excellent start. I was like the vast majority until GFC1 almost wiped me out then that feeling i imagine the OP is kind of feeling crept in & i started looking outside my norm for better options that would make me sleep better.
I think it's a sham. The government can change the rules anytime, and I have not received any formal letter from my bank stating my funds "are guaranteed". Let's say one of the top 4 banks gets hammered big time. Guarantee or not, I think people would want to get their hands on their money. (I know I would). I cant see how a teller can say 'dont worry, it's guaranteed'... "Show me my money I say!". I can remember back in 2008 the line of people that went around a whole block in London trying to get their money out of a bank (I think it was NorthernRock). That image has stayed in my head. Although having physical ounces of PMs is good, it cant buy food/water when SHTF (unless you use it to barter). Hence, why I keep a 'stack' of fiat JIC...
When you deposit money into a bank, whether it be a cash management, saver, investment account etc., you are 'trusting' the bank with 'your' money. They in turn provide you with a 'promissory statement' aka a deposit book showing you how much you have deposited in the event you would like it taken out. The money is then 'theirs' to play with. If they lose it they wont tell you. If they make a million off it, they wont tell you. All they want you to do is 'trust' them. When that trust is breached, no guarantee is gonna stop people from knocking on their doors. Anyone remember Babcock & Brown, Leman Bros?... When in doubt, take it out!!!
the old saying is 'don't put all your eggs in the one basket' and it sounds like you are learning just how true this saying is. Personally, I think that being your age and having a load of silver is a wonderful position to be in. To quote another saying 'people get rich slowly'. If you can't wait a few months, or years even, for silver to exceed your dollars investment, then as soon as it reaches the point of returning your 'investment', then sell the lot and park the cash in an interest bearing account that will return you more than the inflation rate (the real one, not the government fiction). I say 'investment' because it sounds to me like you were climbing on the silver bull and hoping it would placidly march you to green and peaceful pastures. Bulls buck and throw and as AusPM so wisely said - the very reason the price was manipulated down was to throw you off the bull. THEY don't want the population safely waiting in gold and silver for their game to play out. It does nothing for economic growth, not to mention that if you're out of metals, there is more for THEM. As you can tell by a lot of posts, silver and gold are not necessarily viewed as investments by the people here, but as a way to save the dollars you have now and to be able to use them in the future when you need them. I bought gold in the early 1980's near the top of the cycle. My hard to find $300 then purchased enough gold to give me a fairly useless half oz paperweight for the next 20 years or so. But I didn't need that $300 since things were booming and I had a good job and I forgot about it. Now that half ounce can buy me what I gave up to purchase it all those years ago. I don't need to sell my little paperweight just yet, so I'll let it sit there and be worth $300 again if massive deflation means 50c loaves of bread again, or be worth $3000 if massive inflation means I have to pay $5 for my loaf of bread. If it's worth $300 again, then my other bits of gold and silver will have cost me a fair penny overall, but either way I'll be able to buy my loaf of bread. If I don't have any gold or silver, then there may be a day when paying for my loaf of bread may be my biggest challenge in life. I think you are very lucky to have discovered what fiat money, investment, counter party risk, and market manipulation means at age 21. You might have learned enough to sell all your silver, cut your losses and jump into a 'safer' investment or asset. Or you may have learned enough to ignore the game outside your window, put your own collection of 'paperweights' aside for a rainy day and forget about metals market for your own 20 years. Either way I believe that having and holding precious metals is a very good idea.
Because, as we have seen in the last week, if you wait until SHTF and for spot to tumble, there may not be any physical silver to buy unless you pay a big premium to pry it out of the sellers hands. And of you live somewhere like Australia you might also find, in s SHTF scenario that along with the spot price of metals tumbling, the value of your dollar might also fall 50%. We also saw in the last week that qualiy silver like PM Lunars and Pandas did not fall far at all.
Who knows where its headed or if its screwed. Most on here have high hopes like myself but sentiment can change quickly. Some here are in to make a quick buck. Eg - buy bulk coins and offload at a nice premium. They may be bullish but treat it as a business so to speak.You see it here all the time. For some people its wishful thinking i think. Your only going to get a bullish answer here. People get caught up in hype and become sheep. Doesnt matter what you have money in as long as you can sleep at night and get a fair return. Everything is a gamble. Scorp
Not really. If i can take my promise and buy a cheeseburger with it, then it's money. It doesn't matter what they do with it - hell I don't give a damn if they go throw a party with it, as long as the government is guaranteeing I'll get it back, it's good enough
*SWAT!* The definition of money has one major caveat that fiat currency cannot qualify under. A constant store of value! Fiat currency is NOT money by definition! I know, I know, it's a pedantic observation considering what you're discussing but we need to set the record straight here on what we're discussing folks.
I've been reading this thread and the best answers seem to be this: 1) If (when) silver gets hammered in GFC2, physical bullion dealers will close up shop and refuse to sell OR be selling at crazy prices. We are seeing a little of that now. There is also a disconnect between the physical buying and the ETF buying. When ETFs are sold and the price drops, the physical buying increases. Therefore, if you sell out now and hold onto your cash, then think about jumping back in when silver takes another big hit, you may find that buying again is difficult. 2) The Australian dollar is a "commodity currency". When GFC2 comes around, I guarantee you that our exchange rate will take a massive hit vis-a-vis the US dollar. As silver is bought in US dollars, any advantage you hope to gain from the falling silver price will in part be offset buy the fact the AUD is buying much less. remember that we've hit $0.50US in the past. 3) After the short term panic of the initial GFC2 subsides, we will be seeing falling real estate prices and the weaker banks will collapse which will put further pressure on the larger banks. I also guarantee you clear as day that when this happens, governments will begin printing like crazy. I say this because the economic leadership of the world, especially in the US, seems to believe that one of the reasons why the Great Depression lasted as long as it did was because the government did not pump enough liquidity into the system. It is up to you to decide whether or not you think this money printing will have an impact on gold and silver prices. Do you buy into the US fiat collapse theory? Bear in mind that theory MUST be supported by a hyperinflation scenario. 4) The industrial applications/short supply argument. Some feel this will be an important factor to silver's demand and supply. I feel in the short term and in a GFC2 scenario, this argument will take a very distant backseat. 5) Why would people buy silver in the aftermath of a crisis? If the crisis is one of enduring deflation, then world currencies will weaken in relation to the precious metals, increasing the purchasing power of the metals. If the crisis is one of inflation, then world currencies will require more fiat to buy a set amount of precious metals, increasing the purchasing power of the metals as people look to an medium of exchange with no counter party risk. In both scenarios, the precious metals will do well once the initial shock of the crisis is overcome and the fallout becomes the new normal. 6) Only invest in silver if you're confident in it. As other people have said, if you think another asset class out there is safer, then move into that. But, if you agree that GFC2 is coming around the corner, what is going to make it through the initial shock unscathed? What are your options? * Stocks (will be hammered) * Cash (our exchange rate will take a MASSIVE hit in a crisis and interest rates will go down on deposits) * Real Estate (the bubble will finally pop) * Commodities (industrial commodities will fall across the board) Your options are quite limited in a GFC2 scenario. People will indeed flood to US treasuries but with interest rate knocked down so low, they are making virtually nothing on their return in a deflation scenario. I would say that if you don't want to be around for the second hammering of silver, then move sideways into gold. You get the benefit of wealth preservation like silver, and it probably won't fall as hard as silver AND will bounce back sooner than silver as well. Just be careful and pay attention to the government. You'll want to offload before the Governor General activates Part IV of the Banking Act. Or you could hold in cash (as most of the world seems to be doing) on the assumption that precious metals will be available for physical purchase after the initial shock (or into ETFs, provided they survive the shock).
I think this is definately true. These blows to silver have been merely a deleveraging by investors after scares from the global economic status and short term assets deflation. Overtime, yes, silver will continue to decline as investor demand drops (most of which is leveraging on ETF's) and industrial demand declines. Economic theory tells us that a primary driver of asset price is the expected future condition.
Wait until people realise that the US empire is toast and that the US dollar will collapse, they will try and inflate their currency instead of defaulting and in that environment PM's will be the best place to be. Until that happens you will see alot of volatility up and down but in the end its good to have some silver. I wouldnt be going all in but something like 10% of your money in silver is a good idea. Buy the big drops and always keep spare cash on hand for when opportunities like the other day (intraday low $26) come. It is a industrial metal so it will get sold hard when people freak out about growth and a market wide selloff occurs but when people dont run to the US$ anymore what is left as a safe haven? Gold. and silver will follow. Every country is trying to devalue their currency atm but it always takes the general public to realise whats going on and the majority will find out whats happening after its too late, their savings will be wiped out, all those 401k retirement funds will be history and there will be civil unrest/rioting/chaos in the US and Europe, weve already seen a taste of it in Greece and it will get alot worse. Im not sure how bad it will be in the land of Oz but with china looking like its on the ropes and Euromoney giving Wayne Swan (alien slime ball) some best treasurer award were surely doomed and 99% of people in Oz are clueless. Be prepared and keep stacking a balanced stack (gold and silver) as well as keep cash on hand because shit is gunna get real and sooner than alot of people think
According to your source, that "million oz" axis is supposed to be "billion oz". If it was million, then the recently found 200 ton shipwreck silver (approx 6 million troy oz) would be a pretty big deal.
Woah, hang on a second - what is this?? I googled it and became hopelessly lost in the legalese... Is there anyone out there who can explain this (specifically, the consequences for the average joe) for if and when this happens?? In laymans terms, for the dumbass over here
