Home Precious Metals

negative interest rates and precious metals

2»

Comments

  • USASoccerUSASoccer Posts: 445 ✭✭✭
    Originally posted by: mariner67
    Originally posted by: USASoccer
    Real Estate will be good, people will always need a roof over their heads.


    Like in 2008-9?
    image



    Well yes even in bad times people need a roof over their head, I had a rental in those years and never had a hard time renting it out.
  • ShadyDaveShadyDave Posts: 2,199 ✭✭✭✭✭
    "Past performance is not indicative of future results"- No matter what people say or think they might know about what is going to happen or how things will unfold is pure speculation. The US and global economies are in uncharted territory with countless rounds of QE and I think were in the "deep end of the pool" with most economies not being healthy. Just a few days ago, the ECB announced more QE....


    I plan on being diversified (company retirement plan, 6 month emergency fund, a house/land and multiple sources of income) and liquid to weather whatever storm might come from these bonehead "economists" and their decisions. I plan on buying up assets when people realize they're over leveraged, panic and need cash.image
  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    Originally posted by: ShadyDave
    "Past performance is not indicative of future results"- No matter what people say or think they might know about what is going to happen or how things will unfold is pure speculation. The US and global economies are in uncharted territory with countless rounds of QE and I think were in the "deep end of the pool" with most economies not being healthy. Just a few days ago, the ECB announced more QE....


    I plan on being diversified (company retirement plan, 6 month emergency fund, a house/land and multiple sources of income) and liquid to weather whatever storm might come from these bonehead "economists" and their decisions. I plan on buying up assets when people realize they're over leveraged, panic and need cash.image

    "Past performance is not indicative of future results" is strictly a disclaimer one uses to keep from being libel for what one recommends.

    Past performance, in the context of other factors, remains very indicative of future results until it no longer remains so. Dollar index movement is indicative of gold price movement. Central bank "printing" is indicative of gold price movement. etc., etc. etc.

    Your plan (and a good one) to be cash heavy to take advantage of "assets when people realize they're over leveraged, panic and need cash" is itself based on "past performance."

    Natural forces of supply and demand are the best regulators on earth.

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    Past performance of gold in 1933, 1979, and 2011 has me really looking forward to sometime in the 2040's or 2050's when the metal will again rise to a new all time high price, and we'll sell it all

    (before it crashes in price yet again and then moves sideways in relative value for another generation)

    Liberty: Parent of Science & Industry

  • cladkingcladking Posts: 28,658 ✭✭✭✭✭
    Originally posted by: coinkat

    What happens to precious metals if negative interest rates arrive in the US?




    I don't know.



    But when they start taxing money while enriching the bankers who got us to this point we might be at the beginning of the end.



    Unfortunately the end could occur in less than ten minutes with computer trading and derivatives.



    Tempus fugit.
  • jmski52jmski52 Posts: 22,867 ✭✭✭✭✭
    the end could occur in less than ten minutes with computer trading and derivatives

    And history repeats itself, but never in the same exact way. That's why holding cash and "waiting until overleveraged people realize that they need cash and panic to sell assets" might be the right idea, but a moment too late.

    What's that old saying, I'd rather be a year too early than a second too late", or something to that effect.

    We truly don't know if gold will become worthless, or cash will become worthless, or debt will become worthless, or what might retain value. I suspect that the best asset of all is still simply having a good job.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • ShadyDaveShadyDave Posts: 2,199 ✭✭✭✭✭
    Originally posted by: jmski52
    the end could occur in less than ten minutes with computer trading and derivatives

    And history repeats itself, but never in the same exact way. That's why holding cash and "waiting until overleveraged people realize that they need cash and panic to sell assets" might be the right idea, but a moment too late.

    What's that old saying, I'd rather be a year too early than a second too late", or something to that effect.

    We truly don't know if gold will become worthless, or cash will become worthless, or debt will become worthless, or what might retain value. I suspect that the best asset of all is still simply having a good job.


    I agree, the issue is the "unknown" and what will come with all of this QE and devaluing currency....since this has never happened for this long and on a global scale. Having MULTIPLE sources of income is important these days; a full-time job, a significant other with a job or some sort of source of income and a side business or craft that you can fall back on is very important as well. Jobs these days come and go in the blink of an eye in corporate America (I see it first hand), especially when all that matter is "maximizing shareholder value".
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Originally posted by: USASoccer

    Real Estate will be good, people will always need a roof over their heads.




    Selected RE in fresh and growing communities in fiscally sound states will always be good. But, I think the majority of it won't be.



    RE experienced a 52 yr. up-cycle from 1955-2007, much of it on the needs of the baby-boomer generation. 52 year rises would typically be followed by a 20-26 year consolidation/decline. That fits with Armstrong's Real Estate cycle model which forecasts the next major RE bottom in 2033. I wouldn't expect anything like the previous 50 years to occur over the next 20 yrs as the populous boomer generation checks out. The rules are going to be rewritten. A typical born in 1954 male BB would have a life expectancy to 2033.

    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    Deflation has yet to take it's toll on RE. It will. While NIRP will be good for both RE and PMs, cash will remain king for the intermediate term.

    Natural forces of supply and demand are the best regulators on earth.

  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭
    The millenial generation is larger than the baby boomers, new home starts are and have been low for several years. The supply demand equation is favorable for real estate, unless you live where no one wants to, as it seems some on this board do with their dour views.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • TwoSides2aCoinTwoSides2aCoin Posts: 44,294 ✭✭✭✭✭
    They'll still be precious, with less luster. ( in a manipulative sort of way)
  • derrybderryb Posts: 36,834 ✭✭✭✭✭

    Natural forces of supply and demand are the best regulators on earth.

  • jmski52jmski52 Posts: 22,867 ✭✭✭✭✭
    Great article!!!
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • s4nys4ny Posts: 1,569 ✭✭✭
    I don't expect negative interest rates in the United States.

    If you do not expect negative interest rates, you should buy the banks.
    Especially those that are most hated: Citigroup and Bank of America.

    Both sell below book value.

    Almost all other banks are good also. Better than any of the other non bank financials with
    the exception of AIG, which is being restructured into a money making machine.


  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    Originally posted by: s4ny
    I don't expect negative interest rates in the United States.

    If you do not expect negative interest rates, you should buy the banks.
    Especially those that are most hated: Citigroup and Bank of America.

    Both sell below book value.

    Almost all other banks are good also. Better than any of the other non bank financials with
    the exception of AIG, which is being restructured into a money making machine.



    I don't expect many of these banks to survive round two. There's a reason they are selling below book value and it appears many investors understand it. Not trying to be disagreeable, just don't yet share your optimism. I look forward to the day that I can.

    Natural forces of supply and demand are the best regulators on earth.

  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭

    Global rates been moving up.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    edited November 4, 2016 5:23AM

    Natural forces of supply and demand are the best regulators on earth.

  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭

    And who said these govts were stupid. Paying negative interest......genius!!

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,834 ✭✭✭✭✭

    @cohodk said:
    And who said these govts were stupid. Paying negative interest......genius!!

    until bond market implodes.

    Natural forces of supply and demand are the best regulators on earth.

  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭

    @derryb said:

    @cohodk said:
    And who said these govts were stupid. Paying negative interest......genius!!

    until bond market implodes.

    And?....

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,834 ✭✭✭✭✭

    @cohodk said:

    @derryb said:

    @cohodk said:
    And who said these govts were stupid. Paying negative interest......genius!!

    until bond market implodes.

    And?....

    then they all get to print more money to buy their own debt since no one else will want it. FED is already there. Got gold?

    Natural forces of supply and demand are the best regulators on earth.

  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭

    The higher rates go the more demand for it.

    Gold is not the only asset class that benefits from a decline in the currency in which it is based.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

Sign In or Register to comment.