Precious metals appreciation against world currencies 10 years

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locklimitdown's picture
locklimitdown
Status: Bronze Member (Offline)
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Posts: 46
Precious metals appreciation against world currencies 10 years

This should end any debate about  preservation of purchasing power in the world of currencies

The PMs win by a wide margin

But dont tell the CONex that!

http://goldmoney.com/commentary-the-decades-best-national-currency.html

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
Re: Precious metals appreciation against world currencies ...

LLD,

I'm a Goldmoney client, but this article is just marketing for their services. Granted gold has outperformed just about everything in this last decade, but then you could have also said that about stocks in the 90's. So I don't take from this article that gold has any special ability to preserve purchasing power in all but the longest time frames. Its ability to preserve purchasing power in this last decade can be entirely attributed to its favorable status (aka bull market).

Run that same analysis for the 1980's and you will come to a much different conclusion about gold maintaining its purchasing power.

 

locklimitdown's picture
locklimitdown
Status: Bronze Member (Offline)
Joined: Mar 15 2008
Posts: 46
Re: Precious metals appreciation against world currencies ...

Does gold preserve purchasing power?

Perhaps not if one is a day trader. Over the longer term there is no debate.

You made reference to the fact golds favourable returns are only due to it being in a bull market. Of course gold has been in a bull market. Not even JPM can deny repercussions to lack of fiscal restraint.

I dont think drawing comparisons to past time periods  where gold underperformed is applicable, considering global monetary policy has gone where policy has never gone before. I need not go into the unprecedented printing and monetizing taking place by the holders of the worlds reserve currency. The US PTB have neither the stomach, courage or discipline to change their ways. The insanity will not stop because it cannot stop. IMO the only way out of the impossible black hole of debt is to devalue the dollar. Whats worse is they will have to devalue faster than their global counterparts all thinking the same thing. Net result will be runaway hyperstagflation. I dont even want to think about what will eventually happens to yield. No doubt the fed will be purchasing 100% of debt offerings before its all over.

The fed is sitting on a trillion dollar mountain of non performing worthles MBS. Dont think for a nano second they wont to everything in their power to make sure a ROI is achieved before the lights go out. The fed never loses. I wouldnt expect this time period will be any different unless the fed is abolished. Chances of that happening?  Between zero and none.

Believing in the dollar is belivieving the fed will exercise fiscal restraint.  After all we have seen I would be more inclined to put my money in lottery tickets.

 

I see the CONex thieves hit the pms again at exactly 0820 {CONex opening} to the second. I have lost count how many times this has happened in recent months. Can you hear JPM pound their chests in glee? What desperate acts of intervention. Yup...sure looks like the cartel is terrified of the CFTC watchdog and the upcoming hearings. They are all in this together.

It wont work in the long run. Its all about physical supply which is not available. Premiums for physical are now moving higher reflecting what a farce paper pms have become. Soon there will be none available at any price

 

Take Delivery now before the cupboard is dry!

 

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Re: Precious metals appreciation against world currencies ...

LLD

I've posted this many times. I think its appropriate to post again on this thread.

 

The Nine Steps of Hyperinflation

  1. BOOM. Markets rise. Creation of asset bubbles.
  2. BUST: Market Crash. Inflation goes negative. Central Banks overreact and cut interest rates. Money injections.
  3. BOND BOOM: Government debt balloons. Debt issuance soars.
  4. STABILIZATION: Stocks and commodities recover. Bonds stabilize. Volatility declines.

You Are Here

  1. BOND BUST: Inflation goes positive. Bond buyers pull out. Central Banks step in and buy bonds (Quantative Easing). This gradually crowds out and scares off real buyers.
  2. CURRENCY CRISIS: Money flees inflated currency, at first a trickle then a flood.
  3. INFLATION SOARS: Quantitive Easing. Currency weakness pushes prices. Inflation accelerates. Commodities rise. Inflation reaches pre-bust highs.
  4. POINT of NO RETURN: Central Banks are slow to contract money supply. Government continues to spend more. Deficits continue to grow. Real economy is still slow. Prices spiral.
  5. CURRENCY DESTRUCTION: Double digit inflation. Currency devaluation. Bond market crash. Inflation goes logarithmic. Confidence in money is destroyed. Eventually even monetary contraction will not help as demand for cash evaporates.

 

Luc's picture
Luc
Status: Bronze Member (Offline)
Joined: Dec 3 2009
Posts: 58
Re: Precious metals appreciation against world currencies ...

 

Jonny,

 

I  like this post.  You are welcome to post it many times more

 

Luc

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Re: Precious metals appreciation against world currencies ...

We'll keep moving the "You Are Here" part as things progress...or degress depending on how you look at it. Thanks Luc.

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