Events That Have Effected Pm's In The Past

PM prices majorly tanked in late 2008, coinciding with the stock market crash and the deepening recession. Some of us are wondering if the same thing will happen again soon, considering the recent reports that the economy is once again losing what little steam it had since the last ghost recovery.

Yes, they sure did. But then, so did everything else too. At that time, as well as during most prior market crashes, cash did the best of just about anything. That may have been the turning point from "cash is trash" to "cash is king".

Currently, the biggest mover and shaker on the PM scene could well be the mountain of debt that has piled up over the years and that a lot of people are now scratching their heads, wondering if there even is a politically acceptable solution to this problem. I think that this problem can be solved but that it will take more effort and guts than have been displayed so far. This is why so many investors are watching Europe, as they are the ones who are wrestling with this problem at the moment. The entire world monetary and financial systems could come unraveled over this, so it is incredibly important to everyone. If the EU fails, it is likely that the UK will fail next, then the US, and then Japan. One of two things seems to be needed: either a complete system reset with debt forgiveness OR a difficult program that allocates significant amounts of money towards debt payment. While a debt reset would be most effective, it is also unlikely to happen because the creditors want to be paid for their goods. The latter is much more likely and could be effective too but it is a difficult path with little to no thanks going to those who make it happen.

With all the economic uncertainty swirling around the world, PMs can and will serve as a raft of stability in an ocean of debt... for those who care to climb aboard, that is.

L Frank Baum and you wont find anything in wiki about this....

Copy an paste below....

"At the end of the program, there's an interesting side-note regarding the 1900 children's story, "The Wizard of Oz." The video below presents an extremely strong case that the story is actually about gold & silver. Dorothy loses her house and teams up with the scarecrow and the tin-man (a farmer and industrialist) along with a timid lion (W.J. Bryan), trying to maintain enough courage to follow the yellow brick road (the gold standard), battling against evil (banking) forces. Once they finally reach Oz (oz = ounce), they find that the system is being maintained by a corrupt politician manipulating the people through trickery and deceit. In the original book, written by L. Frank Baum the ruby slippers were actually silver!! And silver is what brought Dorothy back home -- back from a nightmare."

http://www.youtube.com/watch?v=cSI_aOl6Rn0

BF once posted a video about this, and the one above is the best example I could find on a short search....

I'm a conspiracy theorist at heart and this is the mild example above that very well could be true, while say the Philadelphia experiment in 1943, gov cover ups surrounding it and Tesla as well as a very unique connection to Montauk New York and 1983. Via a 40 year exact point of the time space continuum connection, high powered antenna's that make real thought projection into reality, and aliens and time travel of-course would be on the more EXTREME side of my research, rof....

Hawk,

Plus, if you remember, the wicked witch of the west was green skinned, much like the dollar/greenback. She died when water was thrown on her, much like what would happen to a fresh dollar hot off the printing press. I guess he wasn't a big fan of fiat currency, either.

Thanks, T.



While we can't predict this closely as to what prices we will have and when, the trend seems to be for ever cheaper fiat currencies, as they race madly and brainlessly to the bottom (is the 1st one to zero the winner?), it is pretty clear that over time PMs will retain their buying power and fiat will not. Because of this, keeping enough fiat to pay one's recurring bills plus a little extra for unforeseen emergencies while putting the rest into PMs seems a pretty good approach.

There is always the chance of a "black swan event" occurring that will upset this apple cart but the odds seem quite long in favor of PMs in spite of this. A different black swan could also come along and devastate the fiat world long before it might otherwise have collapsed, so the unforeseen events of our times do not seem to favor either PMs or fiat. What does favor PMs are the things that we all know to be true today, such as bursting government budgets, falling government revenues, massive public debt, failing cities, falling bonds, etc.

There is an analogy that is appropriate here. Imagine that your great grand father had left you a small wooden chest as an inheritance. Say that the chest contained $5,000 from 1900. Would you rather that be $5,000 worth of paper currency or $5,000 face worth of gold coins?

Libertad,

IDK, '65 marked the end of almost all silver coinage. In '71, we were knee deep in blood and gore with Vietnam. Most of the 1970's would have been considered the decade of stagflation, which I believe we now reside in once again. If I'm right, that might contribute to the current silver and gold bubble.

There are probably better reasons than the ones I've named but off the top of my addled head, I can't think of any.

IMO, there is no gold or silver bubble. None of the conditions that create a bubble exist in the PM arena. Everyone is not buying PMs, for example. Everyone is not talking up PMs. PM prices have not been bid to ridiculous levels. Etc. What IS happening, however, is that fiat currencies are being printed in vast excess of the earnings ability of the economies that issue those currencies. Huge amounts of debt have been sold as bonds in various fiat / Ponzi schemes. So, IMHO, if there are bubbles out there now, they are bubbles of fiat currencies and bonds and not PMs. Bottom line seems to be, "What would you rather hold for long time periods? Debt, fiat, of PMs?" Answer that and you will know what to do.