If we get GFC-2 in the coming weeks, will PMs collapse or boom?
- Thread starter SpacePete
- Start date
Some people might be dumping PMs for the short term margin calls and debt related stuff, but surely the more severe and longer this crisis goes then PMs will be the best option for safety and the market will wake up to it eventually. When GFC-1 hit it took a couple of years for PMs to top out.
I'm already wishing I had more gold bars and less silver coins in my stack tho
I'm already wishing I had more gold bars and less silver coins in my stack tho
If there is a fright, do you fight, flee, or freeze?
I think that I will fight and buy more silver. However, the window will initially be small if the USD is seen as the save haven, PMs will increase as a function of currency. Then as the U.S. economy faulters, the Aussie will go back up and PMs will decrease for a while. Then PMs will steadily rise.
I think that I will fight and buy more silver. However, the window will initially be small if the USD is seen as the save haven, PMs will increase as a function of currency. Then as the U.S. economy faulters, the Aussie will go back up and PMs will decrease for a while. Then PMs will steadily rise.
sammysilver said:
Theoretically. But somehow my instinct says this time it's gonna be different
sammysilver said:
Yeah, we have to think about the AUD.
With the government stomping its boot on the throat of the Australian economy I doubt very much the AUD will strengthen significantly over the longer term. I think we can look forward to the RBA dropping rates to emergency lows which will kill our dollar and offset any short-term silver price drops in USD.
aslamariff said:sammysilver said:
Theoretically. But somehow my instinct says this time it's gonna be different
Very different I think. Things are shaping up (for Australia at least) to be far far worse than the GFC now that China isn't our get-out-of-jail-free card.
The other big question is, how will our government react and what incompetent measures will they take?
I think Aussies better start stocking up on anal lube because we are about to get fisted... (that's an analogy btw.)
I honestly don't know.
But have some interesting tid bits to add.
Paper price vs. Physical price - paper does determine price even if it's rigged, which it is. Whole price setting mechanism is ridiculous.
Consciousness - physical metal is just not in the consciousness of being seen as a "defense" to the vast majority of the population. How do you expect them to respect its purchasing power?
Shape of things to come - I see greater totalitarianism and consolidation of power as being the goal. The ambition behind government won't go away even if we have GFC2. So my expectation is a cashless likely microchipped, biometric society wanting to be developed.
Dependancy - we are all heavily dependent on a integrated controlled system. From technology, food production, energy etc.
There's more but if you put this all into the meat grinder, I think PMs relevancy can be put into perspective better.
Also the cliche will be how much would a loaf of bread cost if no one can afford to produce it? Or if there are major disruption in supply chain issues?
I think Serbia gives us some insight into things if they get really bad and Greece if things are just a little bad if regional.
But have some interesting tid bits to add.
Paper price vs. Physical price - paper does determine price even if it's rigged, which it is. Whole price setting mechanism is ridiculous.
Consciousness - physical metal is just not in the consciousness of being seen as a "defense" to the vast majority of the population. How do you expect them to respect its purchasing power?
Shape of things to come - I see greater totalitarianism and consolidation of power as being the goal. The ambition behind government won't go away even if we have GFC2. So my expectation is a cashless likely microchipped, biometric society wanting to be developed.
Dependancy - we are all heavily dependent on a integrated controlled system. From technology, food production, energy etc.
There's more but if you put this all into the meat grinder, I think PMs relevancy can be put into perspective better.
Also the cliche will be how much would a loaf of bread cost if no one can afford to produce it? Or if there are major disruption in supply chain issues?
I think Serbia gives us some insight into things if they get really bad and Greece if things are just a little bad if regional.
mmissinglink
Active Member
The short answer is I am not sure if PM's will boom or bust if there is a GFC.
For most of the world, it appears, silver does not function as money today...gold is a little different.
So in a GFC, the two metals may not be treated in the same exact way and we could see the GSR hit new highs. I'm not stating silver is without value in a GFC, but gold may be the go-to PM if significant numbers of people run toward PM's at all.
Whether that happens depends on plenty of factors I think, including how gov't responds and how quickly / slowly the mess gets swept under the rug for another X number of years....lather, rinse, repeat.
Until money again is backed by PM's, I think most people will continue to see PM's as a relic of the past or something that pretty jewelry, a luxury, is made from. I don't like or dislike that...it's just what I'm observing in the world around me.
.
For most of the world, it appears, silver does not function as money today...gold is a little different.
So in a GFC, the two metals may not be treated in the same exact way and we could see the GSR hit new highs. I'm not stating silver is without value in a GFC, but gold may be the go-to PM if significant numbers of people run toward PM's at all.
Whether that happens depends on plenty of factors I think, including how gov't responds and how quickly / slowly the mess gets swept under the rug for another X number of years....lather, rinse, repeat.
Until money again is backed by PM's, I think most people will continue to see PM's as a relic of the past or something that pretty jewelry, a luxury, is made from. I don't like or dislike that...it's just what I'm observing in the world around me.
.
Dropping nicely as expected 
Gatito Bandito
Active Member
Down.
Spot will always go down.
Regardless of the news.
In fact, it may very well hit zero someday.
But it won't stop there.
Negative spot price isn't out of the question.
Stackers will be paying people to haul away their pile.
And miners will be paid not to dig the stuff out of the ground -- but paid to bury it all back in..
Spot will always go down.
Regardless of the news.
In fact, it may very well hit zero someday.
But it won't stop there.
Negative spot price isn't out of the question.
Stackers will be paying people to haul away their pile.
And miners will be paid not to dig the stuff out of the ground -- but paid to bury it all back in..