Ni hao ma
Anyone here still want to gamble its hard earned money away in financial stocks? LOL!
I am sticking with my gold stocks. Any dips in GG is a good buying opportunity.
I don't see gold replacing the fiat system either. And I don't think it's going to be the case of the fiat system failing as much as its going to be another currency/fiat taking the role the US dollar has played since it replaced the Pound. Whether gold returns to having some formal role in the monetary system is something we're going to have to wait and watch for to happen, or not.
But I do see investing in it as a way to maintain my purchasing power as currencies get devaluated and governments around the world screw things up even worse trying to maintain the status quo power structure as we go through this depression.
I also don't see a confiscation of gold for the basic reason that it is no longer part of the official monetary system.
Under what pretext would it be confiscated? Currently, it has no formal role greater than tin or wood or oil or any other commodity. If confiscation did happen as it did in the 30's then you might see the same reaction in gold stocks as was seen at that time. Since gold couldn't be owned gold mining stocks were seen as a replacement and their prices surged.
How this all plays out is anybody's guess. I just wouldn't take an 'all my eggs in one basket' approach. That means buy/hold some gold but don't buy/hold only gold.
In order to avoid problems, I believe the fiat masters will pay a hefty premium to spot prices during the coming confiscation. They can create a trillion in fiat with the click of a mouse.
I doubt they will go to a pure gold std. But some modification thereof, sort of like what we had from 1944 to 1971 might be in the works. IMHO, pipe
Not 4 trillion, not even 40 trillion, but 1500 trillion. That's the amount of derivatives in the market.
Imagine, you have a $1000 debt problem, and given an advance of a few dollars to somehow resolve it.
Is this really practically possible? Only if they can continue to pull wools over ours eyes and that we choose to be blind.
Is there any difference between a dip and downward trent? Never cross last year high is one indication that we may be starting in a long term downward trent. It is too early to tell, we need more clues.
Ni hao Landbery
See the chart and draw a straight line from October. UP trend from there.
BTW, all these pumping in the financial will fail. They are lying to build up confidence in the financial that we all know is in big trouble.
Gold stocks, like GG is a safer bet.
Most of those 'toxic' assets (or are they liabilities?) are held by the chosen few financial institutions the Fed and Treasury are trying to save. They'd be better off letting them die and use the funds to support the strong, well managed financial institutions. Hard to believe but there are some responsible and competent management teams out there running many banks and financial firms. But what I suggest won't happen because the GS's, C's, AIG’s, and JPM's of the world are the politically connected and powerful. In fact GS has pretty much run the US Treasury department since 1992. Except for O’Neil under Bush and he got fired for telling the truth and trying to do the right thing for the country.
So we go on wasting valuable resources, and amassing greater debt never to be repaid, in an attempt to save the politically powerful and in the process transfer their debts onto the public ledger. I've heard this described as the biggest theft of public money ever. When you analyze it at the basic transaction level that appears true.
Go with gold.....