Who will buy Gold during the economic downturn or recession ?

[sammysilver]

Pity the guy on the bottom.

 

[SilverDJ]

But the thing is that, during the recession or GFC situation, who will buy Gold which makes it higher ?

People have money, and the money has to go somewhere.
Either it sits in cash (in some currency), or it goes into gold, shares, bonds, or property.

 

[SilverDJ]

If AU is $10,000 an ounce, loaf of bread would probably be $20.
We would be in hyperinflation

Why?
Our currency is not backed by gold

 

[masmas]

If nobody is buying or selling than how could the price of anything move higher or lower?
There will always be plenty of buyers and sellers of PM, especially during GFC situation.

Why is that so ?
Because when there is a recession, I believe people will buy or stock up some food rather than precious metals which is already getting expensive.

 

[masmas]

It will not go to $10k an ounce. Do you have any association/involvement with PP Publishing?

No I'm not.
I'm just a subscriber of Jim Rickard's premium subscription service, hence I'm trying to bounce the idea if it is make sense to the Gold investor in this forum or not.

 

[masmas]

• If there is a sudden crash, people may be forced to sell gold quickly to meet debt obligations. Initially the price could crash but there could also be many willing buyers looking to move cash into something more tangible, and this would support a price increase.[/*]
• If there is a slow. prolonged downturn with economic stagnation and decay, gold could also stagnate or fall.[/*]
• If your local currency starts to lose value at an accelerating rate, people will rush into gold (and USD) and the gold price will rise steadily as the local currency declines. Later people may convert their gold to USD or bit by bit into the local currency to buy daily essentials.[/*]
• If people lose trust in endless government fiat, gold may see increased demand as a store of value.[/*]
• If there is a major unexpected war, gold will spike.[/*]
• If I personally buy gold or silver, the price will fall the following week.[/*]

Please buy some Gold Pete it needs to go down bit more.
When you look in this website: https://www.dailyfx.com/gold-price as at today, the majority of the analyst mention it is bearish.

So far Gold is fluctuating this year but not yet reaching the peak as in Year 2011 & 2012

 

[masmas]

Out of curiosity, what was the gold price back then? Would an oz of gold today buy the same amount of fags as it did back then? Maybe we should be stacking fags?

Stacking fags is called an orgy!

Or Human Centipede if you connect them all together.

 

[sammysilver]

Just spitballing, but if there is a crash then:

1. Gold and silver will increase in price.

2. Silver will increase faster than gold.

3. The GSR will drop.

4. Stackers will sell silver to the FOMO.

5. Stackers will buy gold.

 

[Ipv6Ready]

Just spitballing, but if there is a crash then:

2. Silver will increase faster than gold.

I dont fully agree with that.

out of 1000 million ounces available only 200 million ounces are for Jewellery and Investors.
A whooping 800m is industrial uses.

Silver and Platinum would tank with less demand, ie less solar panels demand and less catalytic convertors etc
However as other metal prices drop like copper and zinc and if those mines cut or shut production over the year or years than silver prices will start to increase.

If Armageddon ie dark ages literally no electricity these two metals will drop like a stone in water.

 

[Old Codger]

Neither was the German Mark!

 

[masmas]

Just spitballing, but if there is a crash then:

1. Gold and silver will increase in price.

2. Silver will increase faster than gold.

3. The GSR will drop.

4. Stackers will sell silver to the FOMO.

5. Stackers will buy gold.

Sammy,

Does that behaviour based on the real world experience during the last GFC ?

 

[Old Codger]

One stacker will hold off for about a year after SHTF day!


OC

 

[SilverDJ]

Just spitballing, but if there is a crash then:
1. Gold and silver will increase in price.
2. Silver will increase faster than gold.
3. The GSR will drop.
4. Stackers will sell silver to the FOMO.
5. Stackers will buy gold.

Sammy,
Does that behaviour based on the real world experience during the last GFC ?

GSR did indeed drop after the last GFC:
https://www.kitco.com/hist_charts/3650d_sm_gold_silver_ratio.gif
Whether or not it will repeat that again, no one knows.

 

[House]

Just spitballing, but if there is a crash then:

1. Gold and silver will increase in price.

2. Silver will increase faster than gold.

3. The GSR will drop.

4. Stackers will sell silver to the FOMO.

5. Stackers will buy gold.

Sammy,

Does that behaviour based on the real world experience during the last GFC ?

Probably not seeing as silver crashed $21 down to $9. Rocketed up 2.5yrs later but gradually declined as the years went by.

Didn't hear of any FOMO sales. The average person was in no way concerned about PM's during the crash and despite all that has happened in the last five decades, they still aren't.

 

[SpacePete]

• If I personally buy gold or silver, the price will fall the following week.[/*]

Please buy some Gold Pete it needs to go down bit more.
When you look in this website: https://www.dailyfx.com/gold-price as at today, the majority of the analyst mention it is bearish.

So far Gold is fluctuating this year but not yet reaching the peak as in Year 2011 & 2012

http://i.imgur.com/M56aMr0.png

I did buy some silver on the weekend and there was a nice fall today :|

At the moment, I need to save some money so no gold purchases, sorry

 

[SpacePete]

Out of curiosity, what was the gold price back then? Would an oz of gold today buy the same amount of fags as it did back then? Maybe we should be stacking fags?

Stacking fags is called an orgy!

Or Human Centipede if you connect them all together.

Kind of like serial vs. parallel processing. Ugh!

 

[masmas]

I did buy some silver on the weekend and there was a nice fall today :|

At the moment, I need to save some money so no gold purchases, sorry

yes, and of course the price falls down this week Pete