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Question for you deflationists

pmcollectourpmcollectour Posts: 1,211 ✭
in Precious Metals
Are you waiting to buy gold during a deflationary period, or are you still buying thinking
that now matter how bad the deflation, inflation to hyperinflation will soon follow ?

Do you feel we are already in a deflationary period ? Housing- yes ? Education- No ? Other areas of the economy ?

I'm still buying gold and silver, but am asking myself if it would be better during a deflationary period. I'm
wondering if that time is right around the corner, and then we'll see inflation soon to follow.

Thanks.

Comments

  • BBNBBN Posts: 3,761 ✭✭✭
    I'm not on one side or the other. I just treat mteals like my other investments. I don't hold out or wait for a possible drop or deflationary period as we really don't know what's going to happen. Regardless of the price I just slowly accumulate each month. 1/4 oz gold. 5 oz of silver. Repeat each month

    Positive BST Transactions (buyers and sellers): wondercoin, blu62vette, BAJJERFAN, privatecoin, blu62vette, AlanLastufka, privatecoin

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  • OPAOPA Posts: 17,119 ✭✭✭✭✭


    << <i>I'm not on one side or the other. I just treat mteals like my other investments. I don't hold out or wait for a possible drop or deflationary period as we really don't know what's going to happen. Regardless of the price I just slowly accumulate each month. 1/4 oz gold. 5 oz of silver. Repeat each month >>



    Good mindset with that scenario...same is true in buying stock it's called..."income averaging".
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • PerryHallPerryHall Posts: 46,122 ✭✭✭✭✭
    I think inflation is more likely in the future due to the massive deficit spending on the part of the government. If for some reason we go through a period of deflation, is this usually good for gold prices?

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • yellowkidyellowkid Posts: 5,486 ✭
    Economy wise, I don't know what's going to happen in the future and think that whatever does transpire will not be what is expected. I hold my gold and PM funds, and coin collection , and antiques, as a hedge. I reecently added to my gold position and of course continue to buy coins.
  • BuffalodeBuffalode Posts: 339
    I think we will see more drops in real estate, especially home prices. Some projections are saying as many as 900,000 jobs will be lost the second half of this year due to state and local cutbacks and the associated ripple effects into the private sector. Even with all of that it's pretty much impossible to know for a fact what is going to happen overall in the economy. I have more confidence in gold and silver right now than most other things so I am still buying as good opportunities come along. I am convinced all of it will be worth more at some point down the road than I have paid for it. That was not true of some of the stocks I bought.

    Edited to add I don't mean to knock the stock market, just my own skills at picking and knowing when to sell.
    Bob

  • BBNBBN Posts: 3,761 ✭✭✭


    << <i>Economy wise, I don't know what's going to happen in the future and think that whatever does transpire will not be what is expected. I hold my gold and PM funds, and coin collection , and antiques, as a hedge. >>



    This is me. I won't stop putting money into my retirement. I'll just keep adding to that too. The metals just provide a "just in case" for me against my stock funds. My money's split 50/50 between stocks and metals. I suck at guessing and speculating so I'm doing the turtle method. I missed the home run chance. The only people that will have hit a home run in metals were the ones buying heavily 9-10 years ago. I missed that so I'm just accumulating. Slow and steady, stay unchanging keeping a pace. It's the best guarantee to winning.

    Positive BST Transactions (buyers and sellers): wondercoin, blu62vette, BAJJERFAN, privatecoin, blu62vette, AlanLastufka, privatecoin

    #1 1951 Bowman Los Angeles Rams Team Set
    #2 1980 Topps Los Angeles Rams Team Set
    #8 (and climbing) 1972 Topps Los Angeles Rams Team Set
  • Wolf359Wolf359 Posts: 7,656 ✭✭✭
    Deflation if it happens, will be temporary. All fiat currencies always end in hyperinflation.
    Multi-channel listings of coins and inventory management

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  • fishcookerfishcooker Posts: 3,446 ✭✭
    I know 2 people who are doing corporate re-locations. They can't give their houses away.
  • wpr101wpr101 Posts: 59
    Good link explaining coming deflation

  • cohodkcohodk Posts: 19,105 ✭✭✭✭✭


    << <i>Are you waiting to buy gold during a deflationary period, or are you still buying thinking
    that now matter how bad the deflation, inflation to hyperinflation will soon follow ?

    Do you feel we are already in a deflationary period ? Housing- yes ? Education- No ? Other areas of the economy ?

    I'm still buying gold and silver, but am asking myself if it would be better during a deflationary period. I'm
    wondering if that time is right around the corner, and then we'll see inflation soon to follow.

    Thanks. >>



    If I was expecting deflation, why would I even consider gold? Better to stay liquid with cash, then buy farmland which I can leverage and generate income. The ability to take advantage of an opportunity will be your best asset.

    College expenses cannot continue to increase at 8-10% per year unless Universities and States contribute more. Is that gonna happen? Best cure for high prices is high price. Make the cost so high that no one can afford it then prices come crashing down.

    Inflation will only come when the demand for goods and services increases and excess capacity decreases.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • ttownttown Posts: 4,472 ✭✭✭
    College expenses cannot continue to increase at 8-10% per year unless University's and States contribute more. Is that gonna happen? Best cure for high prices is high price. Make the cost so high that no one can afford it then prices come crashing down.


    Sounds like the housing market, it was so inflated we're now calling what's happening deflation and that goes with the rest of the bubbles.
  • ranshdowranshdow Posts: 1,441 ✭✭✭✭
    We are in a deflationary period, as defined by a prolonged contraction in the availability of credit. This seems to be affecting the price of discretionary and near-discretionary items the most (houses, cars, other toys) and things in excess capacity, such as most forms of semi-skilled labor, whereas not so much the prices of demand-driven or supply-limited things like maybe health care, higher education, some commodities, etc.

    For me, macroeconomic speculation is largely a parlor game. I rarely make asset allocation decisions based on my speculations, and if I do, it's with a minor amount of "play money", and not with core retirement or other savings.
  • derrybderryb Posts: 36,795 ✭✭✭✭✭
    Aside from any speculation in PMs you should really be concerned about what your savings are invested in. This is where you could see the biggest hit or the biggest gain. Does no good to make a 25% return on $10k in PMs if you are not effectively managing your $100k in savings or your IRA. If your money is sitting in the bank, it is worth less each month and inflation will eventually eat you alive. The key word here is EVENTUALLY.

    All forum members should also be aware of the personal tax rate increases automatically taking affect Jan. 1.

    If your near term plans include any transaction that results in a tax hit, take that hit this year.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

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