"Cant" is something that is very very wrong when "we will do whatever it takes" is the printing mantra and we've got a 20-30 trillion dollar economic hole to fill.
Also, the longer they put off stimulus the more they have to print. Crazy ain't it?
Negative Interest Rates
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"Cant" is something that is very very wrong when "we will do whatever it takes" is the printing mantra and we've got a 20-30 trillion dollar economic hole to fill.
Also, the longer they put off stimulus the more they have to print. Crazy ain't it?
Let me put it another way crazy. Do you honestly think our politicians can show restraint when the alternative is them hanging from lampposts because everything died?
I just say "cant" because anything over 5k is meaningless unless a new stable currency becomes available. Sure, gold could go to 20 billion dollars but it would still be a measure of relative value to other currencies. Who cares if gold is at 20k when a loaf of bread is 40 bucks, or corn is at 50? Purchasing power can't really increase with higher gold prices after a certain level.
I agree with that. But the thing is I'm saying things will go there. The purchasing power thing is accurate but ... so what? You're in it to save your ass if it does that.
My take on Gold is that while it was a store of value in the past, I don't believe it will return anytime soon, and is pure speculation on what it would be worth in the future.
My reasons for this are several fold.
1) There is no currency available in the world that is backed or even partially backed by gold. I don't mean some weird crypto backed by gold, I mean a regular currency. No country on the planet, that I am aware of, has their currency backed by gold anymore.
2.) The IMF, initially required countries to put in X amount of gold, to become members. A number of years ago, I think 3-5 years ago, the IMF had a very hard time selling their gold. Which is weird right? All these countries put their gold in the pot as their entry fee, and now the organization itself didn't want anything to do with it, and attempted to sell it off. I think the Sri Lankan govt, and one other, purchased small amounts from the IMF, but most central banks did not. After what was like a 2 year period with only 2 sales, they then took the gold to the open market to get rid of it.
3.) Now when you have Hollywood actors on tv commercials pimping gold to the retail investor, the contrarian in me tells me it's not where the smart money is going. It means nobody else wants it, and they are trying to dump it on the little guy.
4.) And while gold has had a bit of a run lately, Peter Schiff himself has admitted on video, that Gold is priced at its ornamental value.
Whether or not its price is manipulated or not, I don't really care, but I think gold is a foolish place to put your assets, and if you want to speculate, do so with a small amount that isn't going to hurt, because after all, the US Govt could just come confiscate it again, like they did before, and you can be sure the price they give you isn't going to be the highest bid.
My reasons for this are several fold.
1) There is no currency available in the world that is backed or even partially backed by gold. I don't mean some weird crypto backed by gold, I mean a regular currency. No country on the planet, that I am aware of, has their currency backed by gold anymore.
2.) The IMF, initially required countries to put in X amount of gold, to become members. A number of years ago, I think 3-5 years ago, the IMF had a very hard time selling their gold. Which is weird right? All these countries put their gold in the pot as their entry fee, and now the organization itself didn't want anything to do with it, and attempted to sell it off. I think the Sri Lankan govt, and one other, purchased small amounts from the IMF, but most central banks did not. After what was like a 2 year period with only 2 sales, they then took the gold to the open market to get rid of it.
3.) Now when you have Hollywood actors on tv commercials pimping gold to the retail investor, the contrarian in me tells me it's not where the smart money is going. It means nobody else wants it, and they are trying to dump it on the little guy.
4.) And while gold has had a bit of a run lately, Peter Schiff himself has admitted on video, that Gold is priced at its ornamental value.
Whether or not its price is manipulated or not, I don't really care, but I think gold is a foolish place to put your assets, and if you want to speculate, do so with a small amount that isn't going to hurt, because after all, the US Govt could just come confiscate it again, like they did before, and you can be sure the price they give you isn't going to be the highest bid.
Most people who own gold dont have it in places that can be confiscated. It would be like the Australian gun laws. Sure it's illegal but nobody turned them back in.
I agree there are better places to put it but only because of the confiscation aspect.
I'd rather invest in myself as an example. Or something that won't have price controls that government is too bloated to go after.
/shrugs
If I had enough money that confiscation was an issue, I wouldn't put it where they could confiscate it.
From loss of all your assets. Most regular assets get crushed in that environment.
Well unfortunately nothing is safe from confiscation at that point, so everything can be crushed, even cash deposits.
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