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 Replies: 63 / Views: 7,052 |
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Pillar of the Community
United States
757 Posts |
yeah but you still gotta live now...they've probably (assuming they really believe what they say) got a little stash they put away for themselves just like we do. the job they use to get that stash just happens to be merchant-related.
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Pillar of the Community
Canada
3692 Posts |
I would say diversify even your metals. Have smaller coins for smaller trades, ASEs for trading with Americans and paying ransoms (just kidding), bullion for propane, etc.
Edited by Libertad
10/29/2010 09:03 am
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Pillar of the Community
United States
4085 Posts |
Everyone saw these articles. Including the professionals who's full time job is to analyze this information and act on it.
Unless you have access to reliable information that NO ONE ELSE DOES, all of this is already priced into the market. You are unlikely to make a killing in gold or silver currently IMO. The time to buy was when no one was talking about gold and silver, not now when it is the hot item of the day.
Just my opinion.
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Pillar of the Community
 United States
2424 Posts |
kenkat,
couldnt agree more with you.
i cant remember the last time silver/gold wasnt talked about. now more than ever people that have sat on the sidelines of this metals-mania, are deciding to get in the game. I excited to see so many replies. shows a lot of us are on our toes and there are a lot you who have sound wisdom and judgment on these issues.
just be wise about your investments. as far as making a killing, I wouldnt hold your breath. but if your in it for the long haul, like the market has tended to go, ups, downs, its a cycle. just how we saw in 1893, the turn of the century, 1920-s germany, 1929 US, and the late 70's, and now, it seems to be doing what its always been doing.. however, which leads me to my next question: compared to the market crashes and government problems of past, ie 1893, 1929, how is this recession(2008-present), different and more/less impacting on the people than previous ones?
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Pillar of the Community
United States
757 Posts |
the difference: massive US debt...not just 12 trillion dollars, either. when you add in all of our obligations it's really around 120 trillion dollars. we simply CANNOT pay it back, and it may be months from now or it may be a year or so from now, but it's going to get worse, probably, than it has been in the past.
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Pillar of the Community
United States
1406 Posts |
Large corporations have more cash reserves right now then they ever have. I don't understand why they would keep these reserves if they felt the dollar would crash so much. Seems like they would try and invest the cash somewhere but as of yet they have not.
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Bedrock of the Community
United States
10982 Posts |
Quote:
the difference: massive US debt...not just 12 trillion dollars, either. when you add in all of our obligations it's really around 120 trillion dollars. we simply CANNOT pay it back, and it may be months from now or it may be a year or so from now, but it's going to get worse, probably, than it has been in the past.
You are spot on here. Our debt levels are out of control and there's is no way to ever pay it back unless we can balance the budget now and start cutting future obligations. The USD as we know it has a 10 year life expectancy right now. It might only survive 5 more years or could make 15 years at best, but there's no question it's dying with the U.S. Gov't and the American people killing it. What will happen when it dies? One world currency? Perhaps, but we're heading for a collapse of the American way of life as we know it. I'm not calling for the Final Armageddon, instead Financial Armageddon and it will make 2008 look like tiddlywinks because we won't be able to just print money to get out of it. Edited by BH1964
10/29/2010 11:53 am
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Valued Member
United States
364 Posts |
Ken, I respectfully disagree. All I've heard on the radio for a decade is buying gold. It has been "hot" for a while by your definition. Are you telling me simply because you hear it everywhere, don't buy silver?
I know, I know...bubble speak. And I have those same fears. But I am not so much investing in silver as I am betting against fiscal responsibility by the United States and the idiot brigade in power. What we have are a bunch of lawyers playing with pet theories while the largest economy in the world slowly dies.
I think America will come out of this, possibly with a whole new monetary system, but until then, I'm log on silver. Just my ten cents.
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Pillar of the Community
United States
4085 Posts |
Although there have always been "gold bugs" advocating it, 10 years ago, I would say it was tech stocks that were hot, not gold.
5 years ago it was real estate and real estate investment trusts (REITS).
I'm not saying it doesn't make sense to own some as a diversifier - I do as part of a commodities fund - but I wouldn't bet the farm on it right now. There's a huge amount of worry about the US financial system already priced in. If things turn out not as bad as everyone's fears, gold (or silver) will not continue to rise as it has.
I would say my opinion of worst case is that the dollar loses it's position as the sole reserve currency for the world and is replaced by a basket of currencies. This would have negative implications for the US for sure, but it happened to the Pound Sterling and the UK is still relevent in world financial markets.
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Bedrock of the Community
Australia
21788 Posts |
I'm from Sydney. My daughter cannot afford real estate in Oz. She is seriously considering buying real estate in America somewhere. She is a nurse, so her employment prospects are more transferable than for most folks.
This gives her a lot of flexibility in choosing which part of the U.S. that she would like to live, to become part of the local community and contribute to it. She currently has links to New Jersey, Las Vegas, and San Diego.
My question is this:
If she is thinking of buying real estate in the U.S., that indicates that real estate in the U.S. must be undervalued at present, relative to the Oz. market. What is your advice?
Also, my son is married to a genuine piece of American Apple Pie, and we think the world of her. They live in Sydney at present. He is an accountant. Should they also adopt the same strategy as my daughter?
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Bedrock of the Community
United States
10982 Posts |
Quote:
What is your advice?
I'm no real estate guru by any stretch of the imagination but I'll toss in my 2 cents worth (as usual). The residential real estate market is still depressed in many parts of the U.S.; prices are expected to continue dropping well into 2011 for certain locales. One area that I know is a strong buy is the Phoenix, Arizona area. My brother lives in Mesa, AZ and has sold 3 houses and bought 2 in the last 4 years. He's a handyman and likes working on them in his spare time. Plus it gives him a place to live! Anyway, homes in the Phoenix area that were selling for upwards of $300,000 (USD of course) in 2006 can now be purchased for as little as $150,000. It's really a buyer's market there and is expected to stay that way for at least another year. I've heard Las Vegas is similarly hard hit but don't know the details. As far as Jersey or San Diego? I don't know, but can't imagine it's as bad as Vegas and Phoenix. Good Luck! |
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Pillar of the Community
United States
3098 Posts |
I definitely like where this conversation is going: informative and exciting! haha
But I'm very weary about gold (other industrial metals, not so much). Gold is more or less a monetary metal, with less and less industrial applications (look on the WGC/kitco sites) and a higher rate of recycling. Plus in the recession, this huge upswing can't be attributed to a greater demand of gold for industrial uses, nor can it be because of a sudden collapse in gold stocks.
I think, as many would hopefully agree with me, that it's driven up mainly by fear: of inflation and the entire QE mechanism. If you look at inflation/CPI growth over the past 40 years after Nixon shock, CPI has only grown around 300%, while gold prices (especially now) have risen from around $35 to $1350 or so. I don't think inflation is the key driver, because even in the 2000s gold was still at $300/oz. I think this huge rise is due to fear and no where else for people to put their money (not stock markets and now not even real estate.) This makes the current gold price extremely volatile and unsustainable, since the price is driven up by fear and anticipation. I think as other "simple-entry" markets such as the stock markets start performing, the gold price will eventually come down from $1400/$1300 levels.
haha, if I knew what was going to happen, I can retire now at 19 and forget school. Too bad I don't and still I have to take everything with a huge bag of salt...
Interestingly... no one has brought up food or weapons... should I open that pandora's box? >:D
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Bedrock of the Community
Australia
21788 Posts |
At less than $200,000 USD, my daughter (not married yet!) could buy a house outright, with a little help from me. Looks like she may like to find a community that needs a good nurse. I know that she has done some research into house prices in the New Jersey area.
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Pillar of the Community
United States
3592 Posts |
wd1040...I think you've hit the nail on the head....fear is the biggest factor for rising metal prices and once the fear is over...down we go. Won't be hard to predict when the downturn will come....just wait till your neighbors start buying humvees and building swimming pools
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Pillar of the Community
United States
2424 Posts |
sel_69l
i am from north county san diego,
my wife and I purchased a small condo for 82,000USD. the same condo sold for $350,000USD in 2006... like many stated, the markets have just corrceted themselves and housing prices will remain like this for some time.
north county san diego in my opinion, is the best place to live. just search best places to live and a few cities pop up in our region, Carlsbad, La Jolla, Del Mar, Encinitas to name a few. Some of these areas are not so hard hit by the recession, being Southern california and all. however, I will say this, I have lived here for almost 4 years, and the financial situation in the state of california is not good. for that reason a lone, one might avoid the state( higher taxes).
however, climate, atmosphere, nightlife, communities, are wonderful! its literally 70 degrees and sunny everyday!~ perfect! anyways, of the cities you mentioned, I am completely biased toward San Diego!
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Replies: 63 / Views: 7,052 |
First Page
Posted 10/28/2010 11:21 pm
