Gold: Fiat Insurance In Action
derryb
Posts: 36,825 ✭✭✭✭✭
"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
0
Comments
<< <i>India’s Ongoing Currency Destruction
15% loss of value in the last month >>
Didn't gold and silver lose 40% and 65% respectively?
Knowledge is the enemy of fear
<< <i>India’s Ongoing Currency Destruction
15% loss of value in the last month >>
In the next 25+ years could this ever happen in the US? Could our strong military presence prevent it?
Successful card BST transactions with cbcnow, brogurt, gstarling, Bravesfan 007, and rajah 424.
<< <i>India’s Ongoing Currency Destruction
15% loss of value in the last month >>
Smart money with a long term horizon will realize greater appreciation by investing in India rather than gold.
Knowledge is the enemy of fear
From when till when? Isn't that the relevant question? Anyone can pick and choose data points. Now, let's talk reality.
Either the markets are manipulated, or they are not. That includes gold, silver, stocks, bonds, and real estate. You decide.
What does it mean if markets are manipulated? It means that you are an outsider, looking in. It means that you can't win if you play their game.
Period. Either you play a rigged game, or you don't. I don't. Apparently, you do.
Looking at the gold chart, it appears that gold has increased by at least 17% in 2 months. That's an annual rate of 102% increase.
That rate implies a price of gold at $2,810 one year from now.
Or a price of gold at $5,620 two years from now.
You can use data points any way you like, but when you don't consider the background or fundamentals, it's all smoke. N'est pas?
I knew it would happen.
<< <i>
<< <i>India’s Ongoing Currency Destruction
15% loss of value in the last month >>
Smart money with a long term horizon will realize greater appreciation by investing in India rather than gold. >>
The same thing was said about Zimbabwe
What changes in value is not the gold, it's the fiat currency used to purchase the gold.
"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
out of EUTF's because many are unsure
if these funds actually have gold in storage.
Many are purchasing physical gold. I think
this is a safe bet in the long run. Still buying !!!
<< <i>
<< <i>
<< <i>India’s Ongoing Currency Destruction
15% loss of value in the last month >>
Smart money with a long term horizon will realize greater appreciation by investing in India rather than gold. >>
The same thing was said about Zimbabwe
What changes in value is not the gold, it's the fiat currency used to purchase the gold. >>
Please show me one person who said Zimbabwe was a good investment
Knowledge is the enemy of fear
<< <i>Please show me one person who said Zimbabwe was a good investment >>
Charles Taffs – President Commercial Farmers’ Union
"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
Depends. PMs have lost up to 50% of their purchasing power. Perhaps time will restore relative value, but time itself is something that can never be regained.
Some people have in in the last few years that PMs can and will lose purchasing power. They have been proven correct. Perhaps time will prove PMs bulls correct.
Looking at the gold chart, it appears that gold has increased by at least 17% in 2 months. That's an annual rate of 102% increase.
That rate implies a price of gold at $2,810 one year from now.
Or a price of gold at $5,620 two years from now.
You can use data points any way you like, but when you don't consider the background or fundamentals, it's all smoke. N'est pas?
Indeed. We must look at all data points. Gold has lost 23% over the last year. Thats $1100 next year and $830 in 2 years.
I think I have been clear in where I stand but the OP was commenting on the loss of purchasing power of a fiat currency. I was merely pointing out that other forms of transaction medium have also lost purchasing power.
Knowledge is the enemy of fear
<< <i>
<< <i>Please show me one person who said Zimbabwe was a good investment >>
Charles Taffs – President Commercial Farmers’ Union >>
Its a commercial "advertisement", but since it was dated last year I would agree that there could be investment possibility. But without a stable government, such as India's, investment is highly risky.
Kudos for finding one person.
Knowledge is the enemy of fear
<< <i>
<< <i>India’s Ongoing Currency Destruction
15% loss of value in the last month >>
Didn't gold and silver lose 40% and 65% respectively? >>
I don't think they lost that much in India, if any. I do know that the equivalent gold prices in India right now are around $1800-$1900/oz due to very large physical premiums.
And they still pay it. Of course if India runs into a strong recession, that may change. While gold and silver lost a ton against the dollar, I don't think that applied to the Rupee.