Gold at all-time high

[Brunolem]

1 hour ago, Captain Monday said:

Understand the exmple but ancient coins would be valued even if made from base metal. Would you trust the GLD etf? reportedly backed by bullion in secured vaults? But why follow the trend and dive into a skyrocketing speculative commodity while inflation remains low.

 

Would it not be more efficient to simply hold a basket of major currencies?

 

I think it is quite SAD that the herd is always being coerced towards expensive gold products while they have no ownership of residence, emergency fund, or even health insurance. Always behind the black curtain lurks a gold merchant, who takes his profits in CASH.

Certainly not trust gold ETF...which own no gold (see the link I posted above).

 

Contrary to what you think, people don't rush to buy gold.

 

A very very small number of people own gold (jewelry aside), and even in the financial world at large, gold represents a tiny fraction of the global traded assets.

 

Official inflation is low, because of the way it is calculated.

 

What has happened is that most if not all of the money created since 2008 has gone into the stock market, high end real estate and art, where inflation runs into the double digits.

 

Yet, this situation is problematic because, besides making the rich richer, this kind of very targeted inflation has no effect on the debt.

 

And the debt, the giant mountain of it, at over 350% of global GDP, is THE problem.

 

It keeps on growing, like the blob, and is unsustainable.

 

So, the "solution" would be to inflate the debt away, and for that, run of the mill consumer inflation is required, like in the 1970s, at 10% or more per year.

 

If the average worker income increases by 10% a year, just to keep up with inflation, then his debt, which remains unchanged, decreases by 10%.

 

After five to ten years, there is not much left of the debt, and the party can resume, or so they hope.

 

Which is why central banks are all studying how to implement official crypto currencies, not to spy on us, mind you, but to stuff our accounts with freshly created money (the equivalent of the $ 1,200 recently given in the US) so that we can spend it, and in the process create inflation (too much money chasing too few goods).

 

What is going on now with gold, silver and the dollar, is an anticipation of what's to come, and not some sort of fad (Warren Buffett doesn't do fads).

 

[Brunolem]

On 8/18/2020 at 7:26 AM, Captain Monday said:

 

Would it not be more efficient to simply hold a basket of major currencies?

 

On 8/18/2020 at 7:26 AM, Captain Monday said:

 

No it probably wouldn't be.

 

Here is a good presentation/summary of what I was explaining in my previous post, regarding the coming inflation...

 

 

[Leaver]

On 8/18/2020 at 9:23 AM, Brunolem said:

And the debt, the giant mountain of it, at over 350% of global GDP, is THE problem.

 

It keeps on growing, like the blob, and is unsustainable.

 

So, the "solution" would be to inflate the debt away, and for that, run of the mill consumer inflation is required, like in the 1970s, at 10% or more per year.

 

Or, have a war.  ????

[Heppinger]

On 8/17/2020 at 8:47 PM, Captain Monday said:

Gold has no more intrinsic value than a bit of paper. It is psychological.

It has industrial utility. Gold has substitutes for its uses also.

There is no way for me to safely store  million dollars or so of gold coins.

Costs of exchange prohibitive, and always at the mercy of the lowest of the low.

The money - changers at the back of the temple.

 

Fools Gold - A bad investment for sheep following a trend.

 

You seem to be a person who would invest in Tulips in 17th century Holland. And when every fiat currency in history inevitably suffers from hyperinflation and then fails, gold has always survived.  For the last 5000 years it has been used as money, with no reason to suggest it wont last another 5000.  1920's Germany, at the end of the Mark's hyperinflation, you could buy an entire city block of commercial real estate in downtown Berlin for 25 ounce's of gold.  If you had have cashed in on the 1st of September 1939 and got the f out of there you would be very rich ???? 

[Heppinger]

On 8/19/2020 at 11:19 PM, Leaver said:

Or, have a war.  ????

there is another way, by wiping out a massive amount of currency, this will stave off hyperinflation, all you need is a crisis as an excuse to remove large chunks from pension and retirement funds.