Just want to hear some peoples though about the matter Obviously the US are digging themselves a grave by printing money, but is there a chance of a second round crisis? which will send the metal prices south like last time? Bellinvest.
There will be a crisis like no one has ever seen mate. The fit is hitting the shan globally on all levels at the moment. Even the weather has gone mad. But never before has the entire world been on the fiat system at once and never before has the global currency been backed by nothing but hollow promises. As the USD continues to tank and eventually implode, the ripple effect across global markets will be catastrophic if they haven't agreed to a new standard by then. I absolutely expect a new crisis and one that places like Australia simply won't be able to deflect with more Keynesian economic hocus pocus.
You are referring to a double dip. Well there wont be as no one likes to double dip the chip. As soon as the thought enters your mind, you are creating the double dip yourself. I just hope that by the time we reach the 4th crises that we will be out of the woods. The problem is that when we exit the woods, we will be doing that somewhere in central africa and be walking towards the north into the sahara, where many of us will go, 'i better get back into the woods'
Yeah i no the sh*t will hit the fan But in terms of PM prices, do you think they will head south very sharply?
The question is will there ever be anything other then a recession again. http://www.lifeaftertheoilcrash.net/Index.html I think american monetary policy is the best they can come up with... short term gain for long term pain
The better question is, what kind of purchasing power will you have with PMs. I'd be happy if I can buy a retail shop for 1000oz Silver in the city =D. Remember the fiat number placed on PMs are artificial, we all don't know what that will be. Anything is possible, main thing to me is purchasing power and value of physical metals. Slam
If they do, buy everything you can because it'll be the last time in your life you'll probably be able to afford it. This is the Global GDP figures to 2003. You can roughly see where 1980 was, but if you want a more accurate figure : 1980 Global GDP Total: $10,404,028,430,440.00 Weighted average: $71,751,920,209.93 Source : http://www.nationmaster.com/graph/eco_gdp-economy-gdp&date=1980 Now fast forward to 2006 (even before the GFC bailout party) and what do we have? 2006 Global GDP Total: $46,826,015,327,130.00 Weighted average: $273,836,346,942.28 A near 500% increase in 26 years. Fast forward to just LAST YEAR (2010) and we get (roughly) : 2010 Global GDP $61,963,429,000,000.00 A 75% increase in just FOUR YEARS! The global money supply is absolutely incredible and accelerating at a furious pace! In fact, as you can see from the graph above... it's on the exponential! Now remember, the 1980's markets were extremely limited for investors - this time around it's EVERYONE across the globe. Yet, you can STILL buy an ounce of Silver for LESS than it's NON-INFLATION ADJUSTED 1980 HIGH today! I personally see no crash in the future for Gold and Silver BUT if you do, you grab every damn ounce you can before the door shuts for good. In a post crash environment, Silver will have it's role, but GOLD will be absolute king IMHO.
Bellinvest. I don't think that you should worry too much about what silver will do when TSHTF. The main thing to worry about is do I have enough ozs silver to survive. This is especially so if you believe that fiat currency has no future. So cometh tomorrow and low and behold the stock market has collapsed by 50% and silver is down to $14oz. The question is now what does an oz silver buy. The answer will be can I buy more loaves of bread with $28 or with 1oz silver. Fiat currency will be worthless just like it was in Germany in1930. What worries me about some posters on this forum is that they all assume that they will still have a job and that only others will loose their job. Just imagine the situation if pensions were cut by 50% as well as all other centerlink payments. Lets face it We all have our snouts in the trough. A lot of the jobs in the city are jobs that make money, moving money around and when the sh,, hits the fan most of these jobs will be gone overnight.IMHO it is all over red rover as far as world finances go. It is like waiting for the cyclone to arrive. You know its coming but you don't know when. The best thing you can do is keep stacking silver and don't worry about the price. Silver will keep you alive if the going gets tough. Just imagine getting 00 shaved off your bank balance in a currency devaluation. If you own silver the banksters will have a lot harder job in making you dirt poor. Regards Errol43
Simon Black (Sovereign Man) had a nice analogy of the financial crash being like a train crash. (see below) I actually think the SHTF scenarios are highly unlikely, but I think we'll see the worst of the seventies combined with the worst of the 1930's - but that will be moderated across the world. The USA still has a long, long way to fall and many countries have barely felt a tremor. We also have some great minds working out the future and they're motivated by both greed and fear so their solutions may be workable. (note: 'may') As for your original question: Look at 2008 - gold and silver both fell as people rushed to US dollar safety. In Oz PM prices increased as the AUD fell like a stone. The RBA will slow its fall as they can but if they can stop it is another question. Gold will soar this time. Likely silver too. Look at history. Gold has always had a value in a crisis and after. All but the starving will trade food and shelter for gold. The wave of attempts to resuscitate the world this time will mean that gold is dealt in grams and shavings not ounces - until they organise a world of electronic credit. If your interest is investment or wealth protection, then arable land and gold is as safe as you can get in terms of being 'rich' after the event. The new upper class will be people who had no debt, PMs and real estate. If your interest is 'making money', I think that will be accidental (who knows what the governments will do to the citizenry in the name of 'national security), if there is another major financial meltdown anytime soon (which history shows WILL happen). If you end up in the upper class it will be as much luck (grace of the powers that be) as it is good management. There will be no middle class. So hope you're upper and not lower. How do you tell? Upper has gated estates with private security forces and shops with a large variety of food for sale. and Mad Max is just a movie. Expect something more like the movie Camorra - http://en.wikipedia.org/wiki/Camorra. Warlords, poverty, food shortages and lots of crime. p.s for anyone who wants to read the train analogy" www.sovereignman.com "The recent bursting of a worldwide, credit-fueled financial bubble was like an impenetrable mountain sitting upon a railroad track... and the global financial system steamed right into it at full speed. The initial shock has already devastated the cars up front... but there are hundreds of millions of passengers in the back whose lives are about to be turned upside down. The economic consequences from this crash are well-discussed: inflation, unemployment, and a steep reduction in standard of living. What concerns me the most, however, are system disruptions. Our modern societies have grown accustomed to having basic needs taken care of. We simply walk into a grocery store and have a bevy of victuals to choose from. We flip a switch and the lights come on, we turn on our mobile devices and can make calls or connect to the Internet. These systems are at serious risk of disruption. "
To me, the 2008 GFC that shuddered through the world was like the Titanic hitting the iceberg ... people carrying on like everything would be fine .... bailing and bailing out to make things right ..... the band played on .... some got away in life boats .... some started to fight ... some time later ... it all went pear shaped very quickly ....
This is a very common attitude. People seem to think that they will be immune, and are almost barracking for the collapse, where they can cash in where everybody else is in trouble. They look at the world as it might be in the future, through their circumstances as they are today. They just don't seem to get that their circumstances are set to change significantly as well.
I doubt anyone who prospered in the 30's depression would wish to return to those times - excluding those who engineered it that is.
Sometimes pain and suffering is required to right the wrongs of the system. There is so much bad debt in the system & disparity in the wealth gap generated through manipulation, deceit and lies that it's going to kill the system we have anyway. Bottom line is, it's all going to crash regardless. The only question is whether we want a controlled descent or to let it go under from it's own rotting weight with no control? It's human nature to fear change. I personally don't fear it and regardless of the consequences, sometimes you have to just knuckle down and accept the inevitable, work through it and become stronger in learning from your mistakes.
"Close the door, put out the light. No, they won't be home tonight. The snow falls hard and don't you know? The winds of Thor are blowing cold. . . "
2008 was like the WTC twin towers in 9/11. They got hit with jet planes. Right now, we're in between the jet planes striking the WTC towers, and their collapse. So, it seems fine. The buildings "aren't going to collapse" ...then, suddenly, kuh...BOOOOOOOOOOOOOOOOOM! ...and then it's a simple case of...too late, mate.
