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 Replies: 16 / Views: 2,508 |
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Pillar of the Community
United States
1450 Posts |
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Moderator
 United States
14463 Posts |
the electronic gold price is $1910 at 1am
EDIT - already 1pm in Hong Kong (my company has a plant there)
but its just 6am in London
Edited by Fuzzy317
09/06/2011 01:01 am
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Valued Member
175 Posts |
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Valued Member
United States
302 Posts |
Don't know when those markets open. However, the Indian markets have been open since Monday, India time, and gold has been going up steadily. Currently at an all time high (28,724 Rupees per 10 grams) at about $1950 per troy ounce. http://calloptionputoption.com/cmcommodity.html for Indian markets. |
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Pillar of the Community
United States
1143 Posts |
I have been watching the Sensex and the Indian market is fairing better than Europe. Fear breeds fear these days.
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Bedrock of the Community
Australia
21788 Posts |
IMO, The Dow Jones Industrial Average is headed for the 7000 to 8000 region again. Another credit crunch, then another recovery to around ?10,000 or more.
We will enter into a period of 'Stagflation', similar to the 1960's event in Australia. Inflation peaked at 18% for a short period.
It is even possible to take advantage of this economic environment. In a period of stagflation, you can pay your mortgage off with smaller, inflated dollars.
Much better to be a borrower, than a lender, in a period of high inflation.
That is how I paid my mortgage off, supposed to be over 25 years, but paid off over seven years, with accelerated payments, on a single income.
In this situation, it matters not one jot if the real value of your house goes up or down; you still need somewhere to live. However, the nominal dollar value of your house will skyrocket in a period of high inflation.
Especially, in the U.S., where, in many places, the values are rock bottom already. Depending where you live, there is only one way some house prices at the moment can go. All it needs is a trigger event.
Australia went through just such a crisis way back in the 1890's. Helps to be an economy historian to know these things.
Whatever you do, treasure your job, if you have one. You need that to make your accelerated mortgage repayments, if you are allowed to. That depends on the terms of your mortgage contract.
However, unless the Chinese economy implodes, the unemployment rate won't go much higher than 15%, which means a recession, but not a depression.
In the early 1930,s the unemployment rate in the U.S. peaked at around 30%.
If you are interested in the current economic performance of most of the important countries, Google:
'trade economics'.
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Valued Member
United States
302 Posts |
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However, unless the Chinese economy implodes, the unemployment rate won't go much higher than 15%, which means a recession, but not a depression.
In the early 1930,s the unemployment rate in the U.S. peaked at around 30%. The problem with the U.S. unemployment figures is that you are comparing apples and oranges. The way the rate was figured in the 1930s is different than the way it is figured today. Using the 1930s method puts the U.S. somewhere around the 20% rate today. When this finally bottoms out, we most likely will have comparable unemployment with the 1930s. |
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Pillar of the Community
United States
830 Posts |
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The problem with the U.S. unemployment figures is that you are comparing apples and oranges. The way the rate was figured in the 1930s is different than the way it is figured today. Using the 1930s method puts the U.S. somewhere around the 20% rate today. When this finally bottoms out, we most likely will have comparable unemployment with the 1930s. Yes apparently our leaders have become experts at hiding the bad economic news from the masses so they can look better at election time. Its the "head in the sand" mentality. |
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Bedrock of the Community
Australia
21788 Posts |
Yes. I agree. The Australian Government has done the same thing. They have clouded the issue by publishing "Participation Rates" in the workforce, and have re defined the term 'Unemployment' to fudge the real figures.
The official unemployment rate in Australia is 5%, but the percentage of people looking for full time work is about three to four times the official unemployment rate.
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Pillar of the Community
United States
2120 Posts |
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It is even possible to take advantage of this economic environment. In a period of stagflation, you can pay your mortgage off with smaller, inflated dollars.
Much better to be a borrower, than a lender, in a period of high inflation. I was thinking the same thing. I try to make sure I pay double my principal every month. After a year I'm already a year and a half ahead on my mortgage. |
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Pillar of the Community
 United States
1450 Posts |
It doesn't help those of us that have no debt,only savings. I guess I am going to have to get as much of my savings as I can into some commodities,with the volatility in the world I really don't know how to protect what I have. Right now I am about 35% PMs and reluctant to go any deeper. Any suggestions?
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Pillar of the Community
United States
3294 Posts |
I am refinancing at 3.5% so that I have plenty of secured debt that when inflation starts, I can pay back at a discount.
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Pillar of the Community
United States
4008 Posts |
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Anybody know what time European markets open? Not specifically but they close at 0830 pacific time / 1130 eastern time. It is likely that they open about 7 hours before this time. |
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Pillar of the Community
United States
1064 Posts |
European stock markets generally open @ 3:00 AM EST
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Bedrock of the Community
Australia
21788 Posts |
With the Government in a high debt situation, high inflation is a very strong possibility.
In this sort of scenario, having a secured debt yourself, can be a good thing. You just have to make sure that you use that debt wisely, and which, if you look like getting into trouble, you can bail out of instantly.
With the money you borrow, just make sure that it is invested into something with which:
1.) you need, and
2.) you feel almost completely certain that it is a sound investment and is bound to increase in value, as all sound investments should.
Young marrieds buying a house is a good example.
Surely, over the nexr 25 years, even real estate in the U.S. should rise in value! With real estete prices and interest rates so low, it has to be a good long term investment over 25 years.
I am thinking of selling my house and giving the proceeds to my kids. They are young marrieds amd they need the money more than me!
So what will I do? Put half deposit down on a small house for myself, and borrow the rest. Fortunately, I have enough capital to knock the loan over instantly, but I will borrow about half of the value of my new smaller home, and pay the loan off over 10 years. (with inflated money if inflation happens). My income, fortunately for me, is inflation adjusted automatically.
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Valued Member
United States
302 Posts |
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My income, fortunately for me, is inflation adjusted automatically. You mean partially inflation adjusted I hope. The CPI ignores several significant portions of spending and they can nail you even with the adjustment. Also, if things get really tough, that adjustment may be curtailed, modified, or canceled, though the latter would not likely happen no matter how bad it gets. The gubmint holds the power and will do anything, regardless of consequences to you, to retain and/or increase that power. |
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Replies: 16 / Views: 2,508 |
Posted 09/06/2011 02:12 am
