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The main driving force behind the Oil and PM price moves...

DoubleEagle59DoubleEagle59 Posts: 8,296 ✭✭✭✭✭
in Precious Metals
If I had to choose only ONE reason why the price of Oil and PM's are moving UP and will continue to move up is the fact that the US dollar will continue to lose value.

I think today's market action best illustrated my point.

In my opinion, the US dollar is TOAST.

I believe at best, the US dollar will lose 50% of its current value.

It has to. There's no other way the US gov't can pay off its massive debt.

And that is why, I'm such a strong believer in Gold and Silver (as the most safe place to invest) in today's current market environment.
"Gold is money, and nothing else" (JP Morgan, 1912)

"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

"I only golf on days that end in 'Y'" (DE59)

Comments

  • DoubleEagle59DoubleEagle59 Posts: 8,296 ✭✭✭✭✭
    I wanted to add that I felt this way before last week, but Hank Paulson's 800 billion to 3 trillion dollar bailout of the markets seals the deal for me.
    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
  • rgCoinGuyrgCoinGuy Posts: 7,478 ✭
    The markets agreed with you today. I am curious, does anyone else think this scenario is possible:

    The US Dollar does lose 50-90% of its value in a short period of time.

    Assume we DO still own the most gold in the world ( I know, it would be nice for an audit of fort knox and the books).

    The Government Kills the Fed. The PPT helps push the price of gold through the roof, think 5k-10k/ounce, maybe even higher.

    At that high of a rate, the government then puts us BACK on a gold standard.

    Possible?
    imageQuid pro quo. Yes or no?
  • HonoluluDudeHonoluluDude Posts: 2,167 ✭
    Today's drop in the dollar is the biggest down move I've ever seen.
  • BearBear Posts: 18,953 ✭✭✭
    The US dollar has no value at all. So,

    how can it lose value. It is a little like

    saying road kill will be worth less tomorrow,

    then it is worth today.
    There once was a place called
    Camelotimage
  • silvereaglesilvereagle Posts: 290 ✭


    << <i>The markets agreed with you today. I am curious, does anyone else think this scenario is possible:

    The US Dollar does lose 50-90% of its value in a short period of time.

    Assume we DO still own the most gold in the world ( I know, it would be nice for an audit of fort knox and the books).

    The Government Kills the Fed. The PPT helps push the price of gold through the roof, think 5k-10k/ounce, maybe even higher.

    At that high of a rate, the government then puts us BACK on a gold standard.

    Possible? >>




    So the US dollar loses 90% of its value, then you can sell your gold at $10,000 an ounce which is worth $1000 in todays terms considering the dollar just fell 90%. So Its worth $1000 an ounce today and $1000 an ounce after the catastrophe of a 90% fall in the US dollar. The only thing that haschanged is now your house, 401K, income, bank account, and other cash assets are now only worth 10% what they used to be. Why do so many PM collectors seem to think they win when the value of the dollar collapses ?
  • cladkingcladking Posts: 28,630 ✭✭✭✭✭
    The dollar has a long way to go but it's going to take a long time to get there.

    It will simply rally for months or years on end before starting another leg down.
    Look for the mid to low-70's to hold until it drops to the mid-'60's.
    Tempus fugit.
  • rgCoinGuyrgCoinGuy Posts: 7,478 ✭


    << <i>

    << <i>The markets agreed with you today. I am curious, does anyone else think this scenario is possible:

    The US Dollar does lose 50-90% of its value in a short period of time.

    Assume we DO still own the most gold in the world ( I know, it would be nice for an audit of fort knox and the books).

    The Government Kills the Fed. The PPT helps push the price of gold through the roof, think 5k-10k/ounce, maybe even higher.

    At that high of a rate, the government then puts us BACK on a gold standard.

    Possible? >>




    So the US dollar loses 90% of its value, then you can sell your gold at $10,000 an ounce which is worth $1000 in todays terms considering the dollar just fell 90%. So Its worth $1000 an ounce today and $1000 an ounce after the catastrophe of a 90% fall in the US dollar. The only thing that haschanged is now your house, 401K, income, bank account, and other cash assets are now only worth 10% what they used to be. Why do so many PM collectors seem to think they win when the value of the dollar collapses ? >>



    FWIW, Your reply is what I think also (as far as not wanting to lose value in everything), and I do not have any type of huge PM Stash. I did divest myself of stocks early this year, when the writing was on the wall. BUT, with the way things are going, I would just as much like to take the hit that's coming, as I have prepared as much as possible, and would rather get back to our constitution and have our dollar have some value. The future right now does not look good, and it is not the PM Collectors faults!
    imageQuid pro quo. Yes or no?
  • silvereaglesilvereagle Posts: 290 ✭
    No im not saying its PM collectors faults. It just seems that a lot of PM collectors are actually hoping for this great collapse of the dollar. Sure, hoarding some PM will give you a little insurance but if this great collapse of the dollar really comes we are all screwed. We have to consider that the US still has the worlds largest economy and strongest military. Also, a good portion of the world is dependent on the dollar not collapsing. Its already fallen a great deal over the last few years, which is partly why PM are up so much. And the great collapse of the dollar might well be finished. I mean its fallen 40% against the euro over the last few years. IMO thats it. The fall is about over.
  • agentjim007agentjim007 Posts: 6,256 ✭
    I'm glad we bought our new Lazy Boy recliners this week end while they still accepted $'s. Now we can kick back and watch the world implode.
  • secondrepublicsecondrepublic Posts: 2,619 ✭✭✭


    << <i> So the US dollar loses 90% of its value, then you can sell your gold at $10,000 an ounce which is worth $1000 in todays terms considering the dollar just fell 90%. So Its worth $1000 an ounce today and $1000 an ounce after the catastrophe of a 90% fall in the US dollar. The only thing that haschanged is now your house, 401K, income, bank account, and other cash assets are now only worth 10% what they used to be. Why do so many PM collectors seem to think they win when the value of the dollar collapses ? >>



    A lot of people still have "fixed" debts (mortgage, whatever) in dollars and if their investments (PMs) went way up, could sell them and at least pay off those debts. So that's one way in which they would gain.
    "Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
  • cohodkcohodk Posts: 19,070 ✭✭✭✭✭
    If everyone is worried about the dollar losing 90% of its value, then why not just increase your stash of dollars 10x?

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • 57loaded57loaded Posts: 4,967 ✭✭✭


    << <i>The markets agreed with you today. I am curious, does anyone else think this scenario is possible:

    The US Dollar does lose 50-90% of its value in a short period of time.

    Assume we DO still own the most gold in the world ( I know, it would be nice for an audit of fort knox and the books).

    The Government Kills the Fed. The PPT helps push the price of gold through the roof, think 5k-10k/ounce, maybe even higher.

    At that high of a rate, the government then puts us BACK on a gold standard.

    Possible? >>



    in one of my daydreams i was thinking the same thing, yes the USA still "owns" by far the most gold in the world, but the rest of the world would get together to plan our own demise for sure
  • jmski52jmski52 Posts: 22,795 ✭✭✭✭✭
    It just seems that a lot of PM collectors are actually hoping for this great collapse of the dollar. Sure, hoarding some PM will give you a little insurance but if this great collapse of the dollar really comes we are all screwed.

    I don't agree. Nobody wished this to be happening. And, it's not "if" the dollar collapses. "If" is no longer in the cards. Thank your Congressman for his reckless spending and corrupt bailouts for the big bankers. PM collectors had nothing to do with it.

    We have to consider that the US still has the worlds largest economy and strongest military.

    And it would be wise not to deploy it all over the world. We can't be responsible for correcting bad behaviors wherever they might occur. Bush has the right idea in talking about countries in the immediate "neighborhood". The US should lend a hand when our friends in the immediate neighborhood needs a boost however, there is a point where intervention turns into meddling.

    Furthermore, we need to direct some efforts to cleaning up our own problems with gangs, drugs, illegals, dirty politicians and crooked CEOs. It's hard to talk about being a "shining city on a hill" when we "look the other way" on some of the same nasty problems that we decry in other places.

    Also, a good portion of the world is dependent on the dollar not collapsing. Its already fallen a great deal over the last few years, which is partly why PM are up so much. And the great collapse of the dollar might well be finished. I mean its fallen 40% against the euro over the last few years. IMO thats it. The fall is about over.

    Being dependent upon our inflated US dollar simply allows (or forces) other governments to inflate and play the same game with their economies. There are so many shell games being played with paper all over the world that *somebody* has to lose big. And *somebody* will lose big. The shell games will end. Just because the euro sucks doesn't mean that the dollar is lookin' good. It's not.

    Paulson is raising the ante. That's all that is happening now. All that's changing right now is the denomination of the currency. Instead of taking a $50 to fill up your vehicle, plan on taking a $50 and a $20 in the not-too-distant future.

    And that retirement account. Just keep watching it. Then watch Congress in action. The two are connected.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • WinPitcherWinPitcher Posts: 27,726 ✭✭✭
    As long as I can buy my morning coffee and 2 newsapapers with dollars I'm happy.

    All the rest I do not care about.


    Steve
    Good for you.
  • coolestcoolest Posts: 2,281 ✭✭✭


    << <i>I wanted to add that I felt this way before last week, but Hank Paulson's 800 billion to 3 trillion dollar bailout of the markets seals the deal for me. >>



    Is there no one in our government that is opposed to one bailout after another? has no one ever heard the expression "throwing good money after bad?" Why is the management never held accountable? all rhetorical questions I guess.
  • ProofRainbowRooseveltProofRainbowRoosevelt Posts: 863 ✭
    500th post!!!! Yippie. Believe it or not, I just heard the Dems are going to lift the offshore drilling ban (I'm still in shock as I'm typing). I'm not much of and economist, but this has to be good for the dollar.

    edit: crap... just did a little research. They arn't going to lift it, just let it expire. But that's good enough for me.
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