Wells Hall Off Topic Board

So Chicago Mark. Going to start putting your faith and money in Russia?

No?

To me this just sounds like another con. It seems like they are only putting a token amount of gold into the basket to give the illusion of a gold standard. In the meantime, they will be able to inflate the shit out of everything else. If we already know that gold makes the best money, we should have a real gold standard. 100% backed by gold. Not yuan, and Marks and whatever other nonsense they throw in there. I don't see this system lasting either. Then when it fails, they will say "the gold standard failed again".

You didn't complete the reasoning, let me fill it in for you.

"Typically people buy gold and silver when they have the jitters..."

"...that the money supply is going to be further expanded, thus devaluing the purchasing power of their federal reserve notes."

People buy gold and silver as a protection against inflation. Right now, the fed isn't advertising further expansionary policy. However, the market is still trying to correct itself (from remnants of both the .com bubble and the housing bubble, among other factors), which is causing the stock market to drop. The fed is only going to be able to stand on the sideline so long, before they step in and being outright printing again (rather than discretely printing, as they are at the moment). When this happens, the easy monetary policy will cause the economy to light up again for a time, and will thus send the stock market up higher, but at the price of further inflation. When that happens, gold and silver will once again react to that, and begin increasing just as they have been for the past decade.

This will continue to happen (there is just too big a correction that needs to occur at this point, more than an easy monetary policy can sweep under the rug), and at some point, the stack will finally tip and we'll see hyperinflation. As ChicagoMark pointed out, other countries are already preparing for this by positioning away from federal reserve notes and into their own currencies, precious metals, other commodities, or a basket comprised of all of the above.

Child please, you want to cherry pick dates? Prepare to get your ass handed to you.

LOL, yup.

Well, I had pulled all of my money out after reading the 1st post of this thread, but then I said what the hell and put it all back in this afternoon, that surely fortified the markets and mitigated the losses for the day. You're welcome.

Is this tBB?

It is all about cycles. Make the right choice once every decade or so and you will be set for life.

70's - You own gold
80's - You own the Nikki
90's - You own US Stocks
2000's - You own Gold

IMHO we are only halfway in the Gold bull market even though it has gone up 12 straight years.

When the next big investment trend makes itself known, it will be time to sell gold and buy that. However, I don't see what that would be, yet. Perhaps farmland or water.

When I tell people to buy gold/silver and start hearing "I already have a bunch!" instead of "Go away conspiracy nut!", that will be when I know gold and silver are reaching the end of their run.

More seriously though, what you listed are all good potential indicators. Our major problem right now is that our banking and political systems are at a point where they really have no idea what to do solve the problems we face (which they themselves of course created). So they're making it next to impossible to predict what is going to happen a month from now, let alone a year, and especially further out. At the moment, all you can really do is try to diversify in a few directions, pay attention, and be prepared to move.

Longer-term, it really depends on what the collective governments of the world decide to do. Most of them are currently in a race to the bottom for the value of their currency, and if that continues, getting out of fiat currency (gold, silver, other commodities that you can't create out of thin air) is probably a safe bet. If you think things are really going to go to pot, then land, water, etc. are great I suppose, but at that point most of us aren't going to be able to be worried about a decade out anyway. I don't think it will get that bad (I sure hope it doesn't), but it's certainly not without precedent. On the other hand, if our federal government decides to bite the bullet and go through the painful correction that's been due for over a decade now, then short-term cash (due to increased interest rates) and longer-term the traditional investment vehicles (due to the economy eventually coming back) will be the way to go.

But unfortunately, it's hard to really know. That's the danger of a planned or at least manipulated economy; forward motion isn't determined by market forces, it's determined more or less capriciously by the "masters" of the economy. Good financial decisions can be turned into bad ones at the stroke of a pen.

Down about 97 points today. Going to wait it out over the summer before putting the 40% back to work I think. Supposed to be some bad news out of Europe on June 1st. You heard it hear first.

If gold is so great, how come all those wholesome businesses on right-wing wacko radio keep trying to sell it???

I guess they're just looking out for us.

I don't want the government to do anything about this, other than to stop spending money we don't have.