where is the dollar is worthless et crowd?

[Brendan R]

being long gold in a meltdown situation were currencies are worth nothing makes no sense unless you own it physically.

What's the point of having huge mark to market profits if these profits are expressed in a worthless currency.

Gold makes sense only if owned physically and you have the means of defending it, i.e. guns and ammos.

Otherwise, it's purely a psychological warfare.

sometimes I wonder if people know what they are wishing for

 

[thriftybob]

Because we don't use gold or maybe silver as currency anymore, we need to keep liquid enough currency to live off of, but there is no way I would consider SAVING in paper.

It is inherently worthless, and if it were NOT to decline in value, governments and bankers would see to it that more was printed to MAKE it decline in value. Yes, its just DEBT.

 

[Debaser82]

Quote from Brendan R:

being long gold in a meltdown situation were currencies are worth nothing makes no sense unless you own it physically.

What's the point of having huge mark to market profits if these profits are expressed in a worthless currency.

Gold makes sense only if owned physically and you have the means of defending it, i.e. guns and ammos.

Otherwise, it's purely a psychological warfare.

sometimes I wonder if people know what they are wishing for

That's just not right.

If you bought gold at 250$ an ounce and you can sell it for 1050$ an ounce you made a nice profit period.

Guns, currency collapse etc have nothing to do with it.

 

[thriftybob]

The gold isn't worth any more, its just that the dollar is worth less.

 

[clacy]

Quote from thriftybob:

So...

How much is paper money worth, anyway?

Surely you understand there is intrinsic value involved in such as paper currency, contracts, copyrights, patents, goodwill, brand names, etc?

 

[Debaser82]

Quote from thriftybob:

The gold isn't worth any more, its just that the dollar is worth less.

That's true but only till a certain extend.

For instance if you owned oil from 10$ to 150$.

Somewhere along the line one makes a profit in true terms.

Ofcourse where that is is up for debate.

 

[zdreg]

Quote from Debaser82:

That's true but only till a certain extend.

For instance if you owned oil from 10$ to 150$.

Somewhere along the line one makes a profit in true terms.

Ofcourse where that is is up for debate.

there is no debate when you go to the supermarket or entertain a woman.

 

[Optional]

Quote from S2007S:

I still think it's worthless.

It doesn't matter what you think. What matters is what IS!

 

[Kassz007]

Speaking of the "where is the......" crowd, I haven't heard too much about the supposed commercial real estate collapse lately...

 

[DrPepper]

Quote from Kassz007:

Speaking of the "where is the......" crowd, I haven't heard too much about the supposed commercial real estate collapse lately...

And I sure hope that you don't. If it does occur, a collapse of commercial real estate may very well precipitate the next massive economic decline.

One such scenario that could occur would be a lack of refinancing funds by banks for commercial real estate, followed by massive foreclosures, followed by large bank failures. Remember, no one is too big to fail anymore.

If our government does try to bail out more big banks again with massive new expenditures, creditor nations may finally lose faith in our ability to repay our debts and stop buying treasuries in addition to converting their dollars into gold.

The result? Vacant malls and office buildings, rising unemployment, failing banks, bank runs, a rush to silver and gold to protect wealth and, ultimately, a new world currency that is worth a lot less than your existing dollars.