WWMMD? What Would Mad Max Do? I think Dex has a point about how useful being armed to the teeth could turn out to be.
And access to gasoline will be very precious, too.
Re: Gold
Dex
9/26/2011 8:34:24 PM
Yep, we'll need bags of coins and closets of sawn off shotguns. Right @Bargin Bin?
I think what he's saying is that when and if doomsday occurs you don't want to lose a full bar of gold in exchange for a bushel of apples. Smaller pieces are easier to trade.
Gold
AskAsa
9/26/2011 4:37:12 PM
Coins and even bars make much more sense than jewelry. There are just too many variables when buying rings and necklaces from even the best jewelers.
At least a third of the price of jewely is sentimental.
Re: Limits on Gold good for the price
cat tail
9/26/2011 10:42:12 AM
Yes, and it's natural to see some declines. Gold has become a source of liquidity for global margin calls, and it's feeling the inpact of deflationary pressures.
Re: Limits on Gold good for the price
Dex
9/26/2011 10:36:09 AM
Gold is still 7 percent above its level at the start of July, and is up 14 percent this year. That's better than most investments.
Jacob,
I don't see any reason why China would be selling gold. They want to hedge their ballooning U.S. dollar reserves with gold, and their own currency is pegged to the dollar. Therefore, they own gold as a currency hedge.
Of course with a nasty selloff like this there are going to be tons of rumors. The bottom line is that some "whale" is selling.
Without knowing exactly who is driving the selling I would point out that these would be the likely people to be selling:
* A major hedge fund that is in trouble which rode gold on the way up is now selling to meet margin calls across the board
* European Central Banks in peripheral EU countries under debt pressure selling gold to meet financial obligations.
* The U.S., in order to provide more liquidity in the banks.
If you look at the world in these terms and ask yourself what China would do, I would have to say there is one answer: China would want to buy gold. It would be more than willing to take the gold off the hands of these weakened entitites.
Re: Limits on Gold good for the price
Tenacious
9/26/2011 9:01:31 AM
Jacob, Sure gold will dip. There have been peaks and valleys all year. But look at the trendline. It still seems aligned up. Unless they make a drug to give politicians worldwide common sense, things will stay messy and debt-ridden and gold will (over time) remain a safe haven.
(If they invent that magic drug, dump gold and invest in the pharma company that invented it.)
Gold is for the long haul the current US situation and the European situation are dire and won’t change in the long term. It is the investment for long term growth until we see political actions that truly change the factors influencing unemployment, real estate devaluation and the debt bomb.
Re: Limits on Gold good for the price
Jacob
9/26/2011 7:46:49 AM
Noreen, for the last two days, gold pricing is dipping. There is a rumor in market that China and US are planning to sell off some Gold from their treasure. Since the rumor is strong and populated very much, I think the gold price may further dips in coming days.
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