Jump to content
House Price Crash Forum
hobdoll

Gold Dropping Fast

Recommended Posts

...but I don't want gold because I don't need it, so I will not be buying it at any price. ;)

Come on Winkie, is that all you've got? If so, case closed.

Out of interest, do you need money? Or do you get on just fine without it?

Edited by General Congreve

Share this post


Link to post
Share on other sites

If there is an economic meltdown (deflation) cash will be King and Bonds will be the Queen. Devaluation is impossible if everyone does it--relativity cancelled out by equal cforces headed in the same direction etc.

The world has too much capacity and not enough demand from those with the ability to pay for goods through production. Lack of demand forces down prices and falling prices deflate bubbles.

Gold is cyclical--perhaps more so than any other commodity (thing that is bought and sold). It may (may)* be nearing its top as it did in 1980 when everyone rushed for the exits and it crashed from its all time high (IA) of c. $830 to around $200 almsot overnight.

Too much jittery sentiment around for anything that even looks like a bubble at the moment.

* May

Forgive me for asking this noob question: why does an economic meltdown have to mean deflation? Are there any examples in history?

Share this post


Link to post
Share on other sites

Come on Winkie, is that all you've got? If so, case closed.

Out of interest, do you need money? Or do you get on just fine without it?

If you have spent your money on whatever it is you no longer have it, you either consume it and so it is gone for ever or you might get it back if you can sell whatever you spent it on, but the value or buying power may not be the same when you do. ;)

Share this post


Link to post
Share on other sites

If you have spent your money on whatever it is you no longer have it, you either consume it and so it is gone for ever or you might get it back if you can sell whatever you spent it on, but the value or buying power may not be the same when you do. ;)

OK, so you're saying that you can buy something with money and it's possible (depending on what you bought of course) that it's value can increase or decrease over time (as can the value of money - i.e. negative real interest rates are robbing all of us right now).

My central thesis is (as it is of many others like me and many others more learned than me) that in the current situation the buying power of the dollar, euro and pound (not to mention almost all other fiat currencies to some extent) in relation to gold will fall in the coming weeks, months, years. There will be some volatility, but this will be the overarching trend (for reasons discussed earlier in this thread).

Simply put:

- buying power of cash = down

- buying power of gold (real 'non-fiat' money) = up

In this scenario is makes sense to swap cash (dollars, euros, pounds etc.) for gold, if you want to maintain, and very likely increase, the purchasing power of the wealth you have worked for and saved, rather than lose great chunks of it.

Would you not agree?

Edited by General Congreve

Share this post


Link to post
Share on other sites

...but I don't want gold because I don't need it, so I will not be buying it at any price. ;)

I too hope to be that lucky one day.

Share this post


Link to post
Share on other sites

The silence is deafening.

It seems to me the anti-gold crew really do seem to have little ammo in their armoury and always resort to simplistic troll-like posts to 'defend' their 'position'.

Come on guys, give me answers...

Share this post


Link to post
Share on other sites

Would you not agree?

Do what you think is best, not all of us want the same things...you are trying to protect your future spending, others are spending their past earnings today, now, this moment, the future has arrived. ;)

Share this post


Link to post
Share on other sites

Do what you think is best, not all of us want the same things...you are trying to protect your future spending, others are spending their past earnings today, now, this moment, the future has arrived. ;)

Very philosophical Winkie. But not really constructive to the discussion at hand.

Hmmm. Wasn't it a 'Spend today likes there's no tomorrow' mentality that got us into this mess? ;)

Edited by General Congreve

Share this post


Link to post
Share on other sites

So is the 'traditional' advice to hold 10% of personal wealth in PMs bad advice?

As in you mean it's too low a percentage?

If so, yes.

You'd certainly want substantially more than 10% of your liquid/cash wealth in gold in the current environment.

Edited by General Congreve

Share this post


Link to post
Share on other sites

Seriously, are we going to have one of these 'gold dropping' threads every time the price falls $50-100?

If so, we may get through rather a lot as I expect volatility to increase to stupid levels as the price heads towards $5000 an ounce.

We will see intraday moves of $100s (up and down). Hopefully we can avoid pointless threads like this when the price drops from $4100 to $3900 (or something).

Share this post


Link to post
Share on other sites

Seriously, are we going to have one of these 'gold dropping' threads every time the price falls $50-100?

If so, we may get through rather a lot as I expect volatility to increase to stupid levels as the price heads towards $5000 an ounce.

We will see intraday moves of $100s (up and down). Hopefully we can avoid pointless threads like this when the price drops from $4100 to $3900 (or something).

:ph34r:

Share this post


Link to post
Share on other sites

GOLD

10/19/2011

13:44

3341.60

3243.10

-98.50

-3.3%

Not much downward momentum yet. When the sell off happens we should see 10-15% down in a single session. Still too early to expect anythig but a few rumbles and buying on the dips.

;)

Share this post


Link to post
Share on other sites

As in you mean it's too low a percentage?

If so, yes.

You'd certainly want substantially more than 10% of your liquid/cash wealth in gold in the current environment.

Damn you. I wanted RB to tell me it was too much. Then I was going to increase it.

Share this post


Link to post
Share on other sites

Seriously, are we going to have one of these 'gold dropping' threads every time the price falls $50-100?

If so, we may get through rather a lot as I expect volatility to increase to stupid levels as the price heads towards $5000 an ounce.

We will see intraday moves of $100s (up and down). Hopefully we can avoid pointless threads like this when the price drops from $4100 to $3900 (or something).

Yep, mods would be pretty busy moving gold threads if this continues :lol:

What has really shocked me today is that this thread was not started by realistbear :lol:

Share this post


Link to post
Share on other sites

What has really shocked me today is that this thread was not started by realistbear :lol:

ah - you've forgotten that the great man sold out at the very peak in 1980, as he once claimed. :lol:

recently he was claiming he owns some silver (is it around a 30 year high ATM?).

Share this post


Link to post
Share on other sites

ah - you've forgotten that the great man sold out at the very peak in 1980, as he once claimed. :lol:

More like he watched it peak and sold out at a large loss, that is more likely to account for his hatred of gold.

That or he is paid to be here

Share this post


Link to post
Share on other sites

Oh dear, I was thinking gold would bottom at 1340 before going up again unless the Far East market starting selling off which appears to be starting to happen:

GOLD

10/19/2010

17:14

1335.00

1336.00

-34.60

-2.53%

Still not so sure this is the beginning of a 1980-style drop when the price plummetted so rapidly it did not allow people enough time to call in the sell orders before fortunes were lost. Lets hope not eh?

$1374?

Edited by Realistbear

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 276 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.