I, like many, have a nice portion of my investment AND 401K monies in precious metals funds and\or stocks. Stocks such as GG, CDE, SLW for the core stocks. I felt that the dollar was in trouble sooner or later (probably sooner) and that inflation is out there ready to launch of the right set of "occurances" happen.
Well this link I provided paints a potential 30% drop in the USD potentially - and the different scenerios that would likely occur. I hope (being hopeful :-) ) that we get this in a measured way - allowing metal stocks to soar. But my question to the more knowledgeable- is if this persons scenerio happens - where even gold stocks fail - WHERE DO YOU INVEST to protect the initial gains? I had moved large dollars into money markets these past months-figuring to move it elsewhere aftert he first of the year. Now I'm pretty sure I will. BUT WHERE?
Any helpful, thoughtful advise would be appreciated.
Laird doesn't impress me... anyone can set up a scare argument with lists of horrors that fall down like dominoes... but there's a whole lot of in-betweens between his different stages, when one's strategies could be adjusted for real time events. if a crisis begins to develop, PM stocks will spike upwards for a time before any selloff of them owing to other liquidations knocks them down... the PM stocks always smell out financial meltdowns in advance, and right now there's hardly panic buying going on, which one would certainly expect, especially coming out of Asia, if a China-centred crisis were brewing. but as PM's are manipulated by the anti-PM central bankers, i am also averaging in purchases of Profunds etf's that are short the various stock indices, they even have a series that is leveraged shortx2. you buy these like going long a stock, no "short sale" margin needed, and they will perform inversely to the indices. in all events, it's very unlikely gov'ts would consider a freeze of personal accounts or currency controls in the first wave of any financial crisis... it would take a good bit of deterioration, over time, for such measures to be considered - remember too, whatever BuShite administrators might cook up would also have to get through a Democratic House post-Jan. 3.
Gold was confiscated only in USA and it's true we can't foresee what, when or how things will unfold but what is certain is we don't want to be heavily in debt. IF a depression scenario should unfold and one had to move out to another country it would be easier to move or smuggle gold than silver (just for the reason of size). But some theories also have it that silver coins are safer as the government wouldn't ban these.
One other thing to remember about gold when it was banned, people turned gold in and got paid the going rate which at the time was something like $25 (not sure exactly) so if they were to ban it today they would most likely pay for it some sort of amount. I know when inflation was ripping through Eastern Europe in early 80s some people would use gold for barter.
We shouldn't take the approach of the "sky is falling" but nor should we sit and think everything is peachy :) An interesting video to watch is The Money Masters.
If all goes to hell, bullion is what you want to hold. Stocks are paper after all and with initial market crash I would be surprised not to see everything get beaten up including PMs even as gold moves higher. JMO
a few years into the great depression they made it a crime to hold gold bullion or coins, with a $10k fine and prison terms possible... but they did not act against gold and silver stocks, so Homestake Mining Co.'s stock rose throughout the '30s. they did not close down Wall St or freeze stock trading accounts... what would be the point when the Keynesians always need to have markets open to work their alchemy?