Gold, Currency and Bad Advice

Quentin.Daniels

Registered
There certainly is a lot of bad investment advice on this otherwise helpful and informative board.
I mean whats up with some of these posts I read on here like the dollar is going to crash, and gold is going to be the only safe bet?
The dollar is not going to crash, it will fluctuate up and down like it always has.
If the dollar gets weak the US exports will thrive and soon bumping the dollar back up again. Still it would be a bad advice to recommend anyone to invest in any currency since no one knows which way it is going. Same thing with gold, yes it looks good right now maybe because it is used in technology as a semiconductor, but very soon carbon nanotubes will replace gold as a semiconductor and may send gold prices way down.
 

Ries

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While I agree with you about the silly, sky is falling economics, you are wrong about gold usage- 70% of gold worldwide is made into jewelry, 11% is industrial, which, besides electronics, includes dentistry, and around 13% is "investment".

But gold prices are purely speculative, and dont have much of anything to do with jewelry or my new crown, or monster cables for my stereo. Basically, commodity traders, betting on tiny profits on a daily or even hourly basis, decide gold prices.

Right now, though, Gold is at about the highest its ever been. Buying at the top doesnt seem like the best idea to me.
 

perry

Registered
If anyone can believe that a fiat currency will give security is plain misguided . All through history all currencies have collapsed and they will again collapse .

The best security is land that you can live on and feed your family with water rights .
 

Ailujjj

Registered
Guns, gold, or property ?

Picking any ONE of these exclusively is such a weak investment strategy that it doesn't even matter which one you pick.

Diversification is the only investment 'instrument' which can be expected to sustain currency fluctuation, devaluation or (apparently) the coming Armageddon. Any one thing is susceptible to any number of failure scenarios.
 

Argieboy

Registered
Gold's not going to collapse. It might take one or two blows in the short term, but as investors realize it´s not wise to finance america´s trillion dollar deficits, gold will skyrocket as the greenback plunges. That´s the way with fiscal irresponsibility: hard assets are used to protect wealth.

PS: you might even consider changing your portfolio´s currency denomination to argentine pesos... kidding ;)
 

orwellian

Registered
Quentin.Daniels said:
There certainly is a lot of bad investment advice on this otherwise helpful and informative board.
I mean whats up with some of these posts I read on here like the dollar is going to crash, and gold is going to be the only safe bet?
The dollar is not going to crash, it will fluctuate up and down like it always has.
If you had read the posts you might have understood why. When you print trillions of dollars it will cause inflation. If the dollar is replaced as the worlds reserve currency it will be even worse. It might not crash, but it's most likely going to lose a lot of value. Therefore the recommendations to diversify into commodities.
The only one giving bad advise here is you, who only provides a lot of statements without anything backing it up.
 

Mano Negra

Registered
One of the main things supporting the dollar is that so many commodities and financial instruments are traded in dollar denominated contracts as well as it being the traditional reserve currency. A lot of financial institutions are rethinking this, so don't be suprised to see contracts offered in alternative or even baskets of currencies. Further it is unlikely that a weak dollar would lead to an adequate export boom to bail out the US economy. Around 70% of domestic spending in the US is on consumer items, and consumers can very easily decide they don't need a new car or television if it increases their (already extremely high) levels of personal debt.

Really the only reliable asset in an extreme crash situation is ownership of the means to produce food, water and other essentials. Funnily enough Argentina may be the place to be, with relatively low land prices (which would get cheaper with a dollar collapse) and good trade links to China and other developing nations that are likely to lead the way on growth.

Of course that doesn't mean that there is not a good deal of political risk. However, relative to the developed countries it is becoming less. Printing wheelbarrows full of money, vicious tax rises, scrappage schemes, no real realistic plans to reduce public spending...sounds more like Argentina than the UK to me!
 

redrum

Registered
Quentin.Daniels said:
There certainly is a lot of bad investment advice on this otherwise helpful and informative board.
I mean whats up with some of these posts I read on here like the dollar is going to crash, and gold is going to be the only safe bet?
The dollar is not going to crash, it will fluctuate up and down like it always has.
If the dollar gets weak the US exports will thrive and soon bumping the dollar back up again. Still it would be a bad advice to recommend anyone to invest in any currency since no one knows which way it is going. Same thing with gold, yes it looks good right now maybe because it is used in technology as a semiconductor, but very soon carbon nanotubes will replace gold as a semiconductor and may send gold prices way down.
quentin....sorry to be the one to break this to you but the dollar is going to experience a serious devaluation. it is inevitable as the seeds of destruction have already been sown. it's just a matter of time until the velocity of money runs its course.

all fiat currencies, including the dollar, eventually meet their end. and that is what is happening right now.

you're wrong about gold. gold is real money. gold is a store of wealth. now is the time to buy as it is only going to continue to go up in the long term. i wouldn't worry about trying to time the market, just have about 25% of your wealth in precious metals as a hedge against all the instability that's out there. and i don't just mean economic instability.

gold's value has little to nothing to do with industrial use. again, gold is real money. it's hard money. it's a tangible asset because it has intrinsic value. gold has been money for 5,000 years and we are simply going back to that system. why do you think central banks are beginning to purchase gold and store in their reserves.
 
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