So... Europe's going down... cash or gold?

Discussion in 'Markets & Economies' started by goldpelican, Dec 8, 2011.

Page 3 of 3
  1. fishball

    fishball New Member Silver Stacker

    Joined:
    Apr 11, 2011
    Messages:
    6,509
    Likes Received:
    1
    Trophy Points:
    0
    Location:
    Shin Sekai Yori
    Unfortunately it doesn't matter what I or you think, the hedge funds/trust funds and investment banks do all the heavy lifting in the FX market. The Japanese government dumped 5 trillion yen onto the market and it barely shifted a notch. We don't matter. The definition of 'safe haven' is set by them.

    When financial crisis hits, they will dump everything and move into USD/JPY/CHF (mostly USD). Their definition of safe haven.

    This will then flood the market with AUD and crushing the value of AUD through excess supply and weak demand. Also the US Dollar index will rally which puts an even further gap between AUD and USD.

    Economic stability of Australia doesn't even come into it.

    I moved a bit of my cash holdings to USD a while back, common sense doesn't work in these markets, you have to follow the big boys sometimes.
     
    fishball, Dec 9, 2011
    #41
  2. euphoria

    euphoria New Member

    Joined:
    Aug 16, 2010
    Messages:
    1,081
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    QLD
    I would remove the chf from that set. Its pegged to the euro now.
     
    euphoria, Dec 9, 2011
    #42
  3. Teh silvers

    Teh silvers Member

    Joined:
    Feb 5, 2011
    Messages:
    875
    Likes Received:
    15
    Trophy Points:
    18
    Location:
    Melbourne
    All I know is, tomorrow pm's will either be higher or lower.
     
    Teh silvers, Dec 9, 2011
    #43
  4. renovator

    renovator Well-Known Member

    Joined:
    Jan 20, 2011
    Messages:
    6,989
    Likes Received:
    83
    Trophy Points:
    63
    Location:
    QLD
    Good observation thats number 2 on my list
     
    renovator, Dec 9, 2011
    #44
  5. Peter

    Peter Well-Known Member

    Joined:
    Jul 28, 2009
    Messages:
    2,635
    Likes Received:
    121
    Trophy Points:
    63
    Location:
    sydney
    Situation would be too complex to be able to judge the outcome.
    So gold .
     
    Peter, Dec 9, 2011
    #45
  6. Wout

    Wout New Member

    Joined:
    May 8, 2011
    Messages:
    502
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Australia
    Thinking of hedging my AUD cash reserves into something like $30,000 AUD $10,000 USD and $10,000 SGD

    Anyone else been doing something similar?
     
    Wout, Dec 9, 2011
    #46
  7. drohende451

    drohende451 New Member

    Joined:
    Nov 21, 2011
    Messages:
    31
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    New South World Order
    I'm worried about a capitulation of the AUD.
    Surplus AUD should find a home in something else; USD or Gold.
     
    drohende451, Dec 10, 2011
    #47
  8. hussman

    hussman Member

    Joined:
    Dec 2, 2011
    Messages:
    511
    Likes Received:
    20
    Trophy Points:
    18
    Location:
    Adelaide
    Doing what his done.
     
    hussman, Dec 10, 2011
    #48
  9. jpanggy

    jpanggy Active Member

    Joined:
    Jun 23, 2011
    Messages:
    1,668
    Likes Received:
    1
    Trophy Points:
    38
    Location:
    Melbourne
    there should be rally on monday for aud and commodity.

    Europe is "fine" again.
     
    jpanggy, Dec 10, 2011
    #49
  10. hiho

    hiho Active Member Silver Stacker

    Joined:
    Apr 4, 2011
    Messages:
    7,816
    Likes Received:
    21
    Trophy Points:
    38
    Location:
    South Brisbane
    :lol: I love the way you disguise your sarcasm, pure comedy
     
    hiho, Dec 10, 2011
    #50
  11. Irondog

    Irondog New Member

    Joined:
    Sep 28, 2011
    Messages:
    127
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    California
    Rothschild banking elite won't let their European division fold up until they've played their last hand...so there's still a little more time (a few months) to stack pm's in a worst case scenario. It's such a complex situation right now...any predictions are just a guess. Diversification is never bad advice....Diversify yourself.
     
    Irondog, Dec 10, 2011
    #51
  12. Contrarian

    Contrarian New Member

    Joined:
    Dec 16, 2010
    Messages:
    676
    Likes Received:
    3
    Trophy Points:
    0
    Location:
    Australia
    Have banks ever made margin calls on clients with low LVR's who are keeping up with payments?

    C
     
    Contrarian, Dec 10, 2011
    #52
  13. goldpelican

    goldpelican Administrator Staff Member

    Joined:
    Jun 29, 2009
    Messages:
    17,648
    Likes Received:
    581
    Trophy Points:
    113
    Margin calls on residential mortgage holders (assuming that's what we're talking about) would precipitate a housing collapse and have a bloody quick domino effect through every mortgage in the country.

    Won't happen. It would hasten the banks demise.
     
    goldpelican, Dec 10, 2011
    #53
Page 3 of 3

Share This Page