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 Replies: 23 / Views: 3,191 |
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Pillar of the Community
United States
1450 Posts |
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Pillar of the Community
United States
1150 Posts |
If the US government would take the lead of this university, we would immediately see pauses, and probably drops, in gold/silver vs. the dollar. In my opinion it is very wise for ANYONE or any entity to back what paper dollars they have with gold and silver. Or in this case, trading in paper for the physical metal.
Any naysayers on gold/silver were probably burned in the early '80s and are now shy on investing in the stuff. It doesn't change the fact that we have seen a paradigm shift in relation to cold, hard physical metal.
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Pillar of the Community
United States
759 Posts |
Interesting, but don't overlook the fact that they placed just 5% of their holdings in physical gold, achieving one of the pillars of a well diversified portfolio. Good move and if other institutions do follow suit, it creates more demand.
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Pillar of the Community
United States
1064 Posts |
Now I'm more scared than I was Friday, AND Monday. Now, where did I put that billion..
How much would that weigh?
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Pillar of the Community
United States
4989 Posts |
The same thing happened during the real estate bubble.
Many responsible institutions poured into mortgage backed collateral debt obligations because "real estate never goes down" and "real estate is the only real store of value".
That asset bubble ended badly. Dollar 1, Real Property 0.
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Pillar of the Community
 United States
1450 Posts |
Seems like it may be time to clarify an exit strategy ie. if you get out of PM's what do you invest the value in? I surely don't want to increase my holdings in dollars,I have too many of them already. I have all of the non-perishable food I can store and my ammo supply is good,and enough dollars to last about 3 months.My tax deferred annuity is fully invested in a variety of stocks and bonds. May be time for some more real estate such as farmable land. Any other suggestions?
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Pillar of the Community
Canada
1733 Posts |
Farmable land with generation capacity (wind or solar). Energy never goes out of style. Better to be a producer than a consumer.
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Pillar of the Community
United States
1126 Posts |
Let's see put my earnings into something that has been considered
money for roughly 100 years? Or put my earnings into something that
has been money for thousands of years?
As far as my houses are concerned they are worth to me exactly what
I gave for them years ago. They are a place to live for my
family nothing more.
Not some arbitrary number that is
dreamed up by some appraiser. Which is where a lot of the
problem with the housing bubble lies. They would be contacted by a
loan officer and told I have to have this property come in at
XXXXXXXX dollars or the loan will not go through.
And amazingly enough it would come in at that number or higher.
Then that person would flip the property because they could get
another appraiser to get the value of the property to come in
another 50,000 higher or more within a few months or a year
of the last appraisal. And everyone makes money on the deals
through the fees they would charge. Which if you have ever bought a house you know are substantial
The Banks.Loan Officer,Title Company,County Government
The more deals the more money. It was in everyone's interest
to make sure the deals went through no matter how ridiculously
high the prices of the houses went. I saw houses in my town
that a few years earlier could be had for 20-25,000
all of a sudden being appraised for 80-125,000
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Pillar of the Community
Australia
2830 Posts |
thankyou: interesting reading.
Sooner or later, the greenback will come up against the loss of value consequent upon continuous budget deficits.
The only reason that it has stayed afloat this long is because of its status as "World Reserve Currency", but that seems to be wearing thin: see separate thread on "BRICS".
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New Member
United States
33 Posts |
What would you recommend as a good form to get started in gold? The 1 oz Eagles?
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Valued Member
United States
314 Posts |
1oz eagles IMO is a great place to start. Lowest premium on the 1oz as well, stay away from the fractionals.
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Pillar of the Community
United States
4008 Posts |
Quote:
"I look at gold as just another currency that they can't print any more of." - Mr. Kyle Bass
Now isn't that the reason why people invest in PMs? Their values depend on their scarcity and neither government incompetence nor conniving can create a single gram of additional PMs. Unlike the trillions of fiat dollars that skitter through the world's financial systems every day, gold and silver have to be EARNED by the hard and dangerous work of digging in the bowels of the Earth and then processing the ore. Can't just wave a pen over some paper and... TA-DA! Instant money creation! Unfortunately for the fans of government, REAL money cannot be created by official policies, waving pens, solemn pronouncements, or smoke & mirrors. Lots of people are now waking up to this fact and demanding silver and gold as stores of real value. I fully expect to see an announcement any time now for the return of the $1000 bill. $100s just aren't cutting it anymore, what with all of the inflation we don't officially have!  |
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Pillar of the Community
Australia
2830 Posts |
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Pillar of the Community
United States
3670 Posts |
So my memory did serve me right as it does 76% of the time, lol....
Wonder how much they would lose if they sold all that gold today, at 1575 spot price?
Imagine they will not be moving that stack of bars anytime soon....
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Pillar of the Community
United States
1126 Posts |
SilverHawk, You are absolutely right, those bars are not going anywhere for quite some time. My guess would be along the lines that the University of Texas investment people began to see the writing on the wall, and the direction things were going with financials around the planet. Gold is being slowly and methodically positioned as money again inside the financial systems of the world. These people seem to be moving slowly and quietly as to not awaken the vast majority of the public. Which would cause a rush into the Gold and Silver Market. They want to accumulate as much as they can at these artificially low prices. We as collectors are in a very unique position to know about these things because the coins that we collect are made of these metals. I ran across the next step to the monetization of Gold yesterday, It involves a memo circulating between the Federal Reserve, OCC (Office of the Comptroller of the Currency) and FDIC (Federal Deposit Insurance Corporation) testing the waters and seeking opinions for the re-classification of Gold to be weighted as a "Zero Risk Asset" I had to stop and think about the ramifications for that "IF TRUE" I have not seen the actual memo yet. You can bet I am looking for it. If True I believe it means that huge hedge funds and other investment vehicles (Pensions) will be allowed to buy Gold for their portfolios. Which at this time they cannot due to their own rules concerning Risk Weighted Investments. Some big money being able to jump into a small market Hmmm Wonder where the prices might go ? Just wanted to share this with the board. I do not have all of the information Roughly 76 %  but enough to put the hair up on the back of my neck and make me pay attention. Edited by stewart
06/27/2012 07:28 am
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Pillar of the Community
Mexico
1304 Posts |
No kidding...they'd finally admit that PMs are an investment with no counter-party risk?
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Replies: 23 / Views: 3,191 |
Posted 04/19/2011 2:42 pm
