Europe falls will spark the following: 1: euro fall 2: global run to USD 3: AUD tumbles as a result of DXY rocketing up 4: gold falls in USD but not as correlated to the rise of the USD as usual because some are also getting gold including europeans. 5: AUD falls sharply but gold priced in USD does not fall as much 6: gold priced in AUD has a large spike which may provide a window for sale for about a month before markets take in what has happened. To answer the question i believe gold will be good in this scenario especially if Europe goes before the U.S. But having some cash laying around may be good but i would be thinking physical cash not in bank accounts.
If choosing between these 2, I choose gold. However, if a third option were available, I would choose USD short term (vs AUD), then buy gold. Reasoning: USD will get a kick vs every currency while the Euro sinks. Gold will fall vs USD. Then convert USD into gold.
3 months suffient cash for every day use. AUD will lift initially then dive. USD will be last out the gate.When this happens Gold will be beyond reach. Question: where would you imagine the real fat cats will park their wealth. Take away manipulation.............................................................?
^ 100% gold, no AUD. Our $ is just speculation in some mega-investor's portfolio. You wanna play currencies? Fine, there's also the RMB, the CHF, what's the Indian one, and there's that Mongolian thing as well? Far simpler to consider precious metals. What, 2 main players to choose from out of Ag, Au, Pd and Pt? Give me simplicity any day. AUD to buy the milk and veg, Au for my security.
+1 Gold all in for me as well. I only use cash for day to day living, metals to save and preserve wealth. In the event of a currency collapse and the speed in which it can all go to hell, there's not a chance in hell I want to be holding worthless paper waiting to be noticed as worthless paper by the masses. Gold is money, especially when all bets are off and it's all I trust. Gold for me.
i say fill up your shed with can food. buy a can of beans or tuna on sale for 80c now and sell it for $5 in a year or so. can food will be better then gold or cash!
This (bolded) would be the spanner in the works of hoping to "buy a dip" in the gold price - it could simply just rise locally even though it falls in USD. I guess that's the thrust of my question - keep some powder dry hoping to snare extra ounces of Au after something goes truly pearshaped in Europe, or just buy Au and ride it out, even if it means missing buying a stacking opportunity?
For how long have you been keeping the powder dry GP? Have you had any regrets so far with your gold purchases?
Well anyone thats been around long enough will know i'l say cash in good ole aussie dollars. I just cant see it tanking in a hurry .It might go down but not as much as most currencies. All you have to do is look back over the last few months it takes a hit then commonsense rules & it gets back up..Its where it is for a reason .The $US used to be the safe haven now its the $AUD.The US isnt recovering anytime soon . I have to stick with my gut felling & commonsense that there is no safer dollar then ours atm....Dont know for how long but for now its my pick.
Going to read this thread a few times so I can conceptualise the different parts of the rollercoaster properly. Small potatoes like me don't have much speculative gold or cash to work with.
Only regrets are buying 1.5oz when gold was something silly like $1880 - but they were decent grade pre-33 $10 gold pieces including an Indian head that still pull more money in the USA than I paid here, so I don't really regret it But this slide in the POG in AUD has me reviewing a few $1700+ purchases thinking damn, could have bought a little bit more for a little bit less, and wondering about the very short term future price.
