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recessiontime
Joined: 21 Jun 2010
Location: Got avatar privileges nyahahaha
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 Posted: Tue Sep 28, 2010 1:53 am Post subject: |
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well i guess the chances of your gold being confiscated by a K-bank is pretty low, I wouldn't worry about it.
Yeah like I said, gold price will fluctuate up and down but the trend has always been up. I'd just check up on it maybe once a month. |
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recessiontime
Joined: 21 Jun 2010
Location: Got avatar privileges nyahahaha
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| Posted: Tue Sep 28, 2010 3:33 am Post subject: |
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| I managed to convince my dad to buy 10 ounces of gold. Initially I told him to get a kilogram but I guess 10 ounces is better than nothing. |
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beck's
Joined: 02 Aug 2006
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| Posted: Tue Sep 28, 2010 3:57 am Post subject: |
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I don't understand why there isn't rampant, out of control inflation. The Fed is printing money to beat the band, the USD is at an all time low and the interest rates are almost nothing.
This should be a time of hyper inflation. My bet is that without the 'stimulus,' the wars in Central Asia and athe artificially low interest rates we would be seeing deflation. All of the money printing is just staving off deflation, IMO. |
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beck's
Joined: 02 Aug 2006
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Tue Sep 28, 2010 4:56 am Post subject: |
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| beck's wrote: |
| I don't understand why there isn't rampant, out of control inflation. |
Because there is a strongly diminished velocity of money. Banks have huge holes in their balance sheets. The fed expansion ends up repairing balance sheets and not being lent. This is the point of extend and pretend. It's a scary situation when you have a central bank determined to achieve 3% inflation. |
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bucheon bum
Joined: 16 Jan 2003
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| Posted: Tue Sep 28, 2010 5:09 am Post subject: |
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| mises wrote: |
| beck's wrote: |
| I don't understand why there isn't rampant, out of control inflation. |
Because there is a strongly diminished velocity of money. Banks have huge holes in their balance sheets. The fed expansion ends up repairing balance sheets and not being lent. This is the point of extend and pretend. It's a scary situation when you have a central bank determined to achieve 3% inflation. |
Yeah, I was just going to say the money just isn't circulating. People are saving (or more likely, as you note, paying off debt). |
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Cici88
Joined: 18 Sep 2010
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| Posted: Tue Sep 28, 2010 9:16 am Post subject: |
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| recessiontime wrote: |
| I managed to convince my dad to buy 10 ounces of gold. Initially I told him to get a kilogram but I guess 10 ounces is better than nothing. |
I'm trying to convince my parents to put 100k into physical silver......imagine if silver hits $150 an ounce? Very possible. |
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Cici88
Joined: 18 Sep 2010
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| Posted: Tue Sep 28, 2010 9:19 am Post subject: |
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| beck's wrote: |
I don't understand why there isn't rampant, out of control inflation. The Fed is printing money to beat the band, the USD is at an all time low and the interest rates are almost nothing.
This should be a time of hyper inflation. My bet is that without the 'stimulus,' the wars in Central Asia and athe artificially low interest rates we would be seeing deflation. All of the money printing is just staving off deflation, IMO. |
Inflation is the expansion of the money supply, which we are seeing right now. Just because the monetary inflation we are seeing today hasn't translated yet into higher prices, doesn't mean we are seeing deflation.
It is impossible to put a time frame on when exactly the price inflation will begin, but you can't leave interest rates at 0% while printing trillions of dollars for stimulus plans and bailouts without eventually seeing price inflation. It's a sure thing and those who don't prepare for it now will see a
dramatic decline in their purchasing power. |
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jaykimf
Joined: 24 Apr 2004
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| Posted: Tue Sep 28, 2010 3:37 pm Post subject: |
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| recessiontime wrote: |
Try not to follow it, it will drive you nuts. You obviously know that the trend is it's going to go up. Nobody can really say how fast and how high but it's obvious that it's undervalued. The Fed will print more money and they will announce this on Nov 3rd, inflating the money supply again. It's a guaranteed upward trajectory.
The only things that can lower gold price down significantly is
1) they find vast amounts of untapped gold somewhere (unlikely)
2) They find a way to create vast amount of energy cheaply to transmutate lead into gold (highly unlikely)
3) they abandon the USD and introduce a new currency (likely but not for a very long time) |
Please refresh my memory. Which of those 3 factors caused gold to drop so dramatically after its 1980 high and stay so low for 20 years? |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Tue Sep 28, 2010 8:26 pm Post subject: |
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Jim Rickards was on CBC tonight. He's an insider re: Fed. He says the Fed wants gold to appreciate because money printing didn't work. They tried to devalue the dollar against whatever basket they're using and it didn't work. Now instead they'll devalue against gold. The goal is to make China break their currency peg. China won't be able to afford to keep up with her peg (which implies a similar gold to GDP ratio) and the world is inexorably moving back to a gold standard and China needs about 2-3,000 more tons of gold at current monetary base numbers.
Good god. It would be so much easier if we cut the shit and used something other than paper as money. We could compete on productivity etc and not on who has the most cheap currency. |
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Cici88
Joined: 18 Sep 2010
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| Posted: Tue Sep 28, 2010 8:35 pm Post subject: |
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| mises wrote: |
Good god. It would be so much easier if we cut the shit and used something other than paper as money. We could compete on productivity etc and not on who has the most cheap currency. |
Gold and Silver are the only true forms of money. Gold will hit $1600 by mid January....Watch me get rich. |
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mises
Joined: 05 Nov 2007
Location: retired
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El Exigente
Joined: 10 Sep 2010
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| Posted: Tue Sep 28, 2010 9:49 pm Post subject: |
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| mises wrote: |
| Jim Rickards was on CBC tonight. He's an insider re: Fed. He says the Fed wants gold to appreciate because money printing didn't work. They tried to devalue the dollar against whatever basket they're using and it didn't work. Now instead they'll devalue against gold. The goal is to make China break their currency peg. China won't be able to afford to keep up with her peg (which implies a similar gold to GDP ratio) and the world is inexorably moving back to a gold standard and China needs about 2-3,000 more tons of gold at current monetary base numbers. |
How is that going to work? Won't China have to first use up its $3 trillion of reserves of USD? Right now a ton of gold is about $42 million, so 3,000 tons would only cost them about $120 billion.
What am I leaving out of the equation? |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Tue Sep 28, 2010 9:57 pm Post subject: |
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If China sells the T-bills the dollar will weaken, which is what the US wants. China would have to match them on the way down.
If we assume that we're moving back to a gold standard in some form, which I think is a pretty safe assumption over the next decade or so, it does make sense that the US will try to make it difficult for China to acquire gold. The IMF has not been selling gold to China at a pace that the Chinese would like. Sri Lanka and Bangladesh have been sold to instead of China. There is some geo-political posturing going on but maybe JR is just running interference. It's hard to say. Central banks aren't selling anymore. China is also capturing 100% of domestic production. Interesting times. |
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caniff
Joined: 03 Feb 2004
Location: All over the map
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| Posted: Tue Sep 28, 2010 10:08 pm Post subject: |
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| mises wrote: |
| Good god. It would be so much easier if we cut the shit and used something other than paper as money. We could compete on productivity etc and not on who has the most cheap currency. |
Most likely a stupid question: Does the global supply of gold and silver physically exist in enough of a quantity so that it can be divided up and provide a reasonable alternative to paper money?
I guess I mean, (I was drinking Sam Adams steadily tonite so bear with me) how much gold would I need to buy a snickers bar? And what would be my change if I laid down a fat gold coin? Gold dust poured into my palm?
Somebody help me out here. |
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