Gold

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Iron
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If Germany were to let Italy go under, and a global financial meltdown were to ensure, Germany's gold reserves might not be worth very much anyway.

And you could argue that a nation's gold reserves are a small price to pay to prevent a financial apocalypse. I think that, like the Americans in 2008, they'd take the medicine with clenched fists, as the alternative could mean anarchy on the streets...

Jeff
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superfrank
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Ferru123 wrote:If Germany were to let Italy go under, and a global financial meltdown were to ensure, Germany's gold reserves might not be worth very much anyway.
eh?!!!

where are the rich going want to put their money in the event the system blows up?
Iron
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You're assuming that there will even be rich people post-apocalypse...

I don't think anyone has a clue what would happen in the event of a major world economy defaulting in the current circumstances. Maybe gold would soar in value. Or maybe it would become almost worthless. Who knows?

These are interesting times...

Jeff
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CaerMyrddin
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I reckon it would probably soar, although you have to ask yourself, in a post-apocalypse scenario, would you like to eat gold?

:lol:
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superfrank
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Photon
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Downward trend which started on 6th Sep seem to have reversed and the momentum is on the up and with investor not really finding a good opportunities elsewhere and with the lending at ECB at rock bottom prices, German bond yielding negative, PIGS continuing to see negative outlook, I feel there's a real concern about the world economy and I think Gold is most likely to be the winner.
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superfrank
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gold n silver on the march again... hardly surprising given the print, print, print mentality of central banks. FED next.
http://www.marketwatch.com/story/gold-g ... 2012-02-23
Iron
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Warren Buffett: gold has no value - http://www.telegraph.co.uk/finance/pers ... value.html

"Bubbles blown large enough inevitably pop," he said. "And then the old proverb is confirmed once again: "What the wise man does in the beginning, the fool does in the end."
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superfrank
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buffet should stick to stock picking. the bubbles he conveniently ignores (because they bailed him out) are the ones in government debt, bonds and the monetary base.

of course gold doesn't produce a dividend - because it can't be created at the touch of a button to keep the paper asset rich rich (rich in, er, paper) at the expense of the asset-poor, the young and the unborn (for many generations to come).

http://usdebt.kleptocracy.us/
ciangerry
Posts: 9
Joined: Fri Apr 17, 2009 2:04 pm

I'm reading a great book at the moment called 'Currency Wars - The Making of the Next Global Crisis' by James Rickards.

The book does a great job of outlining the role Gold has played in the monetary system. It really drives home the important role Gold can play in anchoring the monetary system and why the current on going currency wars will likely result in a return to some form of Gold standard.
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Euler
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Location: Bet Angel HQ

Japanese pension fund switches to gold

http://www.ft.com/cms/s/0/1be7a2a2-9f3f ... z1vUnVhiOU
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superfrank
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“If you look at assets over the past couple of decades, equity has been a loser, while fixed income offers tiny coupons,” said Yoshio Kuno, Japan head of Newedge, the futures broker. “Gold is becoming an acceptable currency substitute.”
that last line made me laugh... it's rather that fiat currencies are becoming an unacceptable substitute for gold (a currency for 6,000 years) because the Japanese and others just won't stop printing it.

last year a Dutch pension fund was forced to sell its gold as the regulator considered it "too risky"!
http://www.efinancialnews.com/story/201 ... -regulator
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to75ne
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Joined: Wed Apr 22, 2009 5:37 pm

not that i did not need convincing that the world of finance is nothing more than smoke, mirrors, snake oil, reading runes and buillshit; thats put the final nail in the coffin for me. :lol:
andyfuller
Posts: 4619
Joined: Wed Mar 25, 2009 12:23 pm

Has gold had it day? Will be interesting to see if $1,530 holds if it gets tested again. I am currently short on it.
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