Is Gold The Savior When The Markets Crash?

[JSOP]

Antibiotics, seeds, bullets and having several of same guns so as to be able to interchange if damaged to one.

If the entire earth's land is destroyed by radiation from a nuclear blast or by an asteroid, having seeds won't save you either.

 

[JSOP]

Yeah, well... Cramer doesn't know "come here from sick' em". He hasn't made a nickel since his wife made his stock picks.

(JK... just being a little bitchy... since I one time queried him about something, and he suggested I "take a pill" )

You queried Jim Cramer?? Where? On open television??

 

[themickey]

Is Gold The Savior When The Markets Crash?

Once upon a time I used to react when other traders had beliefs which differed from mine.
Nowadays I tend to encourage it as they are paying.
But for your benefit, yes gold can be yours and my saviour, once dumb money have been caught on the wrong side and capitulated at the bottom, dumping their 'precious saviour' gold holdings at the wrong time just like they bought at the wrong time.
SP500 vs Gold vs USD, 20 years.
https://www.barchart.com/stocks/quo...=Dxy00&axis2=false&axis3=false&isComparison=1

 

[dealmaker]

A WWII type event will likely render the northern hemisphere uninhabitable.
If you are still alive after such an event, fresh water, food and a dependable tribe to help you ward off the raiders that just showed up at your door are more important than gold.

In the scenario depicted in the book "When Money Dies" IE post WWII Germany, Austria and Hungary though the governments were severely weakened there was still enough law & order that armed gangs were not ruling the neighborhoods, cities and states. At one point food was so precious that a grand piano was traded for a sack of potatoes.

PS they did have rations...

 

[drm7]

If the crash is due to economic recession, then gold will do poorly, because gold protects against inflation, and most (not all) recessions are deflationary in nature. The big exception was "stagflation" of the 70s, which put gold on a rocketship. Another positive for gold is geopolitical uncertainty - i.e., the risk to the entire monetary system. However, I would rather have ammunition, canned food and gasoline in that case!

 

[maxinger]

The expert said in time of trouble, buy gold (and sell US dollar).

The expert also said in time of trouble, buy US dollar ( and sell gold ).


__________________________

 

[zdreg]

Read "When Money Dies" by Adam Fergusson. It's up-to one's world view, if one believes there is another WWII type of event on the horizon that will disrupt the world for a sustained period of time and weak central authority then gold makes sense otherwise it's a waste IE it has not intrinsic value; doesn't pay dividends/ interest, if you were to buy a substantial amount you'll have to pay for it to be stored etc..
During the recent credit crisis we did have disruption but not weak central authority.

what does IE stand for?

 

[dealmaker]

what does IE stand for?

https://en.oxforddictionaries.com/definition/i.e.

 

[themickey]

....However, I would rather have ammunition, canned food and gasoline in that case!

Wot ya gonna do with the ammo?

 

[rwnomad]

I think gold has more reverse correlation with your currency than your stock market, wherever you reside. In a crash you can short or buy puts, that served me well 2008-2009.