$ is king, period!

2cents · Jun 13, 2006

let's just face it guys, what's the best hedge against inflation? 4git oil, gold, silver and all those bullshit currencies, their all getting it in the neck as we speak... its... the... d.o.l.l.a'!!!

any questions?

Burns' Suit · Jun 13, 2006

Quote from 2cents:

let's just face it guys, what's the best hedge against inflation? 4git oil, gold, silver and all those bullshit currencies, their all getting it in the neck as we speak... its... the... d.o.l.l.a'!!!

any questions?

Please explain, for I don't think your stament could be more fundamentally untrue.

Are you just saying it's a good time to buy greenbacks? Or are you suggesting that buying dollars will actually protect you against inflation?

2cents · Jun 13, 2006

really?!! what do the markets tell u right now... can u see? are they misguided? is there a conspiracy against gold, silver, copper etc, eur, gbp etc, and a couple other asset classes all at the same time? why do people dump all those PoS 'assets' do u think, if they are such great hedges against a devastating inflation outlook? just trying to help u THINK... hope its not too much of a stretch ;-)

zdreg · Jun 13, 2006

why not a conspiracy. it happened to the
Hunt brothers when they tried to corner the silver market . the futures exchange simply changed the rules forcing the Hunt brothers to liquidate.

2cents · Jun 13, 2006

and rightly so, the hunt bros WERE the conspiracy... don't think the broad-based sell-off, or flight to $ safety, is caused by any hunt bros this time... but feel free to think that if u must

Rearden Metal · Jun 13, 2006

Hold $1,000 cash from 1913 until today: You've lost 95.1% of your purchasing power.

Hold $1,000 worth of gold bullion from 1913 until today ( fully factoring in today's dive): You've gained 51% of your purchasing power.

Next...

NB- Cash held in money market accounts or untaxable munis has obviously done far better than a loss of 95%...

However, once you factor in the taxes on the so called 'gains', the purchasing power you lost is still substantial.

Ricter · Jun 13, 2006

I prefer land, seed, tools, and the know how to put up a moose for the winter.

Rearden Metal · Jun 13, 2006

Quote from Ricter:

I prefer land, seed, tools, and the know how to put up a moose for the winter.

I'm sure the moose are grateful for your seasonal hospitality, but can they usually afford expensive room rates?

Ricter · Jun 13, 2006

Quote from Rearden Metal:

I'm sure the moose are grateful for your seasonal hospitality, but can they usually afford expensive room rates?

Hehe, one sec while I ask the 30+ packages in the freezer...

2cents · Jun 14, 2006

Quote from Rearden Metal:

Hold $1,000 cash from 1913 until today: You've lost 95.1% of your purchasing power.

Hold $1,000 worth of gold bullion from 1913 until today ( fully factoring in today's dive): You've gained 51% of your purchasing power.

Next...

NB- Cash held in money market accounts or untaxable munis has obviously done far better than a loss of 95%...

However, once you factor in the taxes on the so called 'gains', the purchasing power you lost is still substantial.

yes of course every gold bug can come up with a formula, time period and irrelevant comparisons, we've read tons of them lately, so much so that i am literally amazed that gold hasn't reached $3600 yet... now perhaps looking at MM/debt instrument returns vs gold over successive time windows including a WW or not, looking at the pre-2000 period notably, would help you see sthg different... also, remember that taxes, for the most part, are for the dumb... and so is gold honestly...

personally i live in 2006 at a time & age when for a decade or 2 now, CBs are independent and actually manage inflationary risks quite well thank you :-)

and what yesterday says notably is that mkts have confidence that this should continue... who needs gold?