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lIllIIIllIlIIlIlIIllIllIIl
Stranger

Registered: 12/16/04
Posts: 11,123
Loc: Texas
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I thought this was pretty funny, about buying gold and silver on margin
#8999058 - 09/28/08 05:27 PM (15 years, 4 months ago) |
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But seriously. Under $1000 an ounce???????
Can anyone explain why this is happening?
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Shins
Fun guy



Registered: 09/15/04
Posts: 16,337
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LOL I saw that a couple days ago.
ROFLMAO!
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lIllIIIllIlIIlIlIIllIllIIl
Stranger

Registered: 12/16/04
Posts: 11,123
Loc: Texas
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Re: I thought this was pretty funny, about buying gold and silver on margin [Re: Shins]
#9000218 - 09/28/08 09:45 PM (15 years, 4 months ago) |
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Yeah the subtitles are a bit fast, but if you press pause it's truly quite funny and very well written.
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Asante
Mage


Registered: 02/06/02
Posts: 86,957
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Patience young Padawan.
I hope $2000 gold will not happen before 2020. The sooner it comes, the more f$cked we will be.
But I fear $2000 gold will come a LOT sooner than that. Maybe before 2010 even.
Quote:
In normal times, money is King In times of depression, Gold is Emperor.
5 billion Zimbabwe dollars used to buy half the country, now it won't even buy you a banana. Please note how it says "Reserve Bank of Zimbabwe" as in "Federal Reserve".
I'd love a premature bubble, but probably gold will go through the roof at the time money will go through the floor. In those times, your investment staying put is the best investment money can buy.
-------------------- Omnicyclion.org higher knowledge starts here
Edited by Asante (09/29/08 09:24 AM)
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lIllIIIllIlIIlIlIIllIllIIl
Stranger

Registered: 12/16/04
Posts: 11,123
Loc: Texas
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Re: I thought this was pretty funny, about buying gold and silver on margin [Re: Asante]
#9012161 - 10/01/08 06:30 AM (15 years, 4 months ago) |
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If money becomes worthless though, wouldn't you be better off with arable land rather than gold? Then you can grow the majority of your food. I'm just not confident that gold will be sought after during such a turbulent time... I mean it is practically worthless as a metal.
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Asante
Mage


Registered: 02/06/02
Posts: 86,957
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Quote:
If money becomes worthless though, wouldn't you be better off with arable land rather than gold? Then you can grow the majority of your food. I'm just not confident that gold will be sought after during such a turbulent time...
If money suddenly becomes worth a lot less, it may do so in a hyperinflation. A hyperinflation will last a couple of days to a couple of months, but typically is all over in a month.
Lets go through an extreme, but certainly not unheard of hyperinflation scenario:
$1 --4 weeks--> $0.02
What would it mean to Joe Blow?
First theres Joe Blow A, who thinks little of the survivalist talk, doesnt care about gold and lives like theres no tomorrow. You know, normal people.
Hyperinflation begins, and Martial Law is declared. There will be no looting as the US Army is all over town.
JB owns a $100.000 house. 4 weeks later thats a $5.000.000 house. JB has a car worth $5000. 4 weeks later that would be a $250.000 car. JB has $10.000 in the bank. Now thats worth only $200. Joe and Mrs Blow eat $15 worth of food every day. At the end of those turbulent weeks that means $750 on food daily in inflated dollars. The Blows have to spend all money in their bank account, and sell their car, just to eat in those weeks. And by the end of the weeks, they are still STARVED. Their bank account and car - it was not enough to feed them through 28 days.
After the four weeks the NeoDollar is put in effect and income is adjusted. The Blow family has their house, and with it preserved the bulk of their ownings. But the car and the life savings - gone. Their retirement fund - gone. Joe loses his job at the Office too - no car, no way to drive there, no funds for other transportation.
Now Joe Blow B. He is one of the "survival nuts" this site has a few of. He actually has a months supply of food and drink in his house. His money, is Gold.
JB owns a $100.000 house. 4 weeks later thats a $5.000.000 house. JB has a car worth $5000. 4 weeks later that will in fact be a $250.000 car. JB owns $10.000 in precious metals. At the end of the ride these are worth half a million dollars. Joe and Mrs Blow eat $15 worth of food every day. BUT - they have a well-stocked pantry, so they eat that. At the end of the month the Blow Family gets to keep the house, the car, AND their savings, and all because they have had the foresight to have a few hundred dollars worth of food in their pantry. Sure, their retirement fund is fucked because it was out of their hands. But aren't they a LOT better off? The savings give them a buffer. The car affords Joe Blow to remain working at the Office.
-------------------- Omnicyclion.org higher knowledge starts here
Edited by Asante (10/01/08 07:35 AM)
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lIllIIIllIlIIlIlIIllIllIIl
Stranger

Registered: 12/16/04
Posts: 11,123
Loc: Texas
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Re: I thought this was pretty funny, about buying gold and silver on margin [Re: Asante]
#9012496 - 10/01/08 09:08 AM (15 years, 4 months ago) |
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I see what you mean. Keeping an amount just so that your savings aren't completely wiped out, and gold is more liquid than land. I see what you're sayin.
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