'Safe Haven' death spiral - part II

Quote from m22au:


For what it's worth I believe that the UK inflation rate is much higher than prevailing gilt interest rates (GoC can you confirm?).

Yes it's higher, Gilts are offering negative nominal returns.
 
Quote from trendlover:

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Cutten, is your thinking this is safer to pay the premium of the put (limit on loss) compare to the short position?

Yes. If I'm wrong the loss could be large. If I'm right, it should be a big move and happen within a few weeks. So puts are the best vehicle, as long as premium isn't absurd.
 
Quote from Chausey:

This is mostly wrong because where the hell are they going to put their money? In risky assets? BAC or Wells Fargo? Gold can pull back, but get liquidated? Why? Just because it will? Just because the CHF goes up and down 8% doesn't mean it bores a hole through the earth when it comes back down. Volatility is here, but that is separate issue from whether the price goes higher.
You can put it in cash.

There won't be hyperinflation.
 
Quote from Butterball:

Very true. I find the entire idea of 'parking cash' very awkward. I'd never park cash in any trading instrument assuming it's 'safe'. For instance I own a truck load of bonds of all maturities and it's been a great ride for the last couple weeks. I don't consider myself parking my money in bonds. I am merely speculating on further price appreciation.

Reminds me of... doesn't it all boil down to just one question:

'At the end of the day, your job is to buy what goes up and to sell what goes down.' -- Paul Tudor Jones

Ok but by keeping your money in cash, you will earn diddly squat for 10 years. Even putting it into a very safe low volatility portfolio yielding 2% real per annum would make you 25% richer within a decade, with little or no appreciable downside. If there is 2% inflation, cash could lose you 25% in 10 years.
 
Savings in cash is actually an investment in a currency. i would rather be in gold then cash that has been doing well? instead of having my inter trade "parks"in cash gold is better.

that being said it is high and alot of attention needs to be there.

As fro the talk about countries buying and selling gold. I have seen it mentioned a few times that when countries buy and sell they do so at a fixed price of under 50$ ?? i saw RON PAUL mention the amount when he questioned the the us gold holdings.. wikipedia i think confirmed this ?
 
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