explod
explod
- Joined
- 4 March 2007
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Agree, keep stacking those 92.5% silver coins.
Nope. Why would they do that?
Gold mining companies will underperform not outperform physical gold. More likely they or their output will be nationalised.
Agree, keep stacking those 92.5% silver coins.
Silver is an industrial commodity, it is not a global reserve asset, nor do I possibly see how it can be adopted as one considering its many many industrial applications.
So the more useless something is, the better suited it is as a reserve asset.
Sec. 46.
The greatest part of things really useful to the life of man, and such as the necessity of subsisting made the first commoners of the world look after, as it doth the Americans now, are generally things of short duration; such as, if they are not consumed by use, will decay and perish of themselves: gold, silver and diamonds, are things that fancy or agreement hath put the value on, more than real use, and the necessary support of life. Now of those good things which nature hath provided in common, every one had a right (as hath been said) to as much as he could use, and property in all that he could effect with his labour; all that his industry could extend to, to alter from the state nature had put it in, was his. He that gathered a hundred bushels of acorns or apples, had thereby a property in them, they were his goods as soon as gathered. He was only to look, that he used them before they spoiled, else he took more than his share, and robbed others. And indeed it was a foolish thing, as well as dishonest, to hoard up more than he could make use of. If he gave away a part to any body else, so that it perished not uselesly in his possession, these he also made use of. And if he also bartered away plums, that would have rotted in a week, for nuts that would last good for his eating a whole year, he did no injury; he wasted not the common stock; destroyed no part of the portion of goods that belonged to others, so long as nothing perished uselesly in his hands. Again, if he would give his nuts for a piece of metal, pleased with its colour; or exchange his sheep for shells, or wool for a sparkling pebble or a diamond, and keep those by him all his life he invaded not the right of others, he might heap up as much of these durable things as he pleased; the exceeding of the bounds of his just property not lying in the largeness of his possession, but the perishing of any thing uselesly in it.
Sec. 47.
And thus came in the use of money, some lasting thing that men might keep without spoiling, and that by mutual consent men would take in exchange for the truly useful, but perishable supports of life.
That's a lot of question marks there UF...
So let's see - the 3 points at issue -
1 - The AIIB - there will always some sort of fiat regime, possibly even a true global one in the future, despite what the gold bugs would like/proclaim? The only reason why it doesn't work is because there's no discipline, entirely unlinked & discretionary. And the US get's to call the shot's by having the default global currency but continually recklessly abuse that privilege ie their federal debt and future liabilities. If or when they decide to have a go at a proper fiat, most likely backed to some degree by a portion of gold and other currencies (also backed by gold or pm's) only time will tell.
2 - the US defending the USD - they are and they will defend it as they have shown repeatedly through Fed action and militarily. It's the only way they can continue to live beyond their means at the expense of the rest of the world. It enables them to keep poking their uninvited fingers into everyone else's business.....
3 - leverage from gold equities - both historically and recently, as in the last few weeks, gold equities have outperformed gold on a percentage basis. It seems odd that you don't want to take advantage of that, considering your beliefs about the direction of the underlying product? My only concern is not about gold companies being nationalised but whether there will be an open exchange to trade them on, if one option open to the market honchos is to halt trading of all equities when or if the second part of the GFC starts to really get going......
But it's your money I guess :bonk:
It's your job to save the surplus so that in 100, 200, 500, 1000 years from now that wealth is still there.
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I think I would prefer to have a diverse portfolio of useful assets managed like the crown estate if that was my time frame.
The crown estate has held its assets for centuries, and they have grown in size, and produces hundreds of millions of dollars each year for the benefit of the royal family and the government in a 15%/85% split.
Not a hedge in this equities down trend?
Well I suppose nothing is the same as it was and all smart asses get knocked on their ass --- eventually.
Hey look at that! Gold up 2.7% and NEM up 8%! Let's see how NCM goes?
You're good!um...didn't the AUD price of gold just trade at a 6 month high a few days ago?
Keep losing, I'll keep buying physical gold with a portion of my productive surplus
Resolution December/January?
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