Thread: Marc Faber Says World Heading for 'Major Inflection Point'

Originally Posted by Ripley

Originally Posted by socal

Gold is only priced in dollars. If the economy collapses to economic ruin, your gold will not go down, the dollar will.

So doesn't this mean gold really isn't rising?

Do you think the currency could change, to EU for example?

Are we headed for a global currency?

All commodities are sold in dollars, not just gold. This was standardized after WWII. If or until (I don't follow the conspiracies about this) the dollar dissolves, all will remain pinned to the dollar. Who will decide what it is to be pinned to, if changed??? Too many chefs around the pot now for any decision to be made.

Originally Posted by Butterfly

Originally Posted by TizMe

Seems a lot of people haven't learnt much since February 1637. Tulip mania - Wikipedia, the free encyclopedia

nope, haven't they ? that's why fools like socal are useful, they are the thermometers of investment wisdom

says the guy that is buying bonds and holding the cash that is backed by bonds that have been going strait up for 30 years.

Apparently a 30 year bond bull market is not a "Tulip mania" in Butterflys mind,but a 10 year bull market in gold is.

tell us about your latest gold buy ? did you hide it under your bed ?

Originally Posted by Ripley

Originally Posted by socal

Gold is only priced in dollars. If the economy collapses to economic ruin, your gold will not go down, the dollar will.

So doesn't this mean gold really isn't rising?

Do you think the currency could change, to EU for example?

Are we headed for a global currency?

The US Dollar/Federal reserve and the Euro/European Central Bank have 2 different ways of dealing with gold. The Dollar/Fed has the paper gold fighting machine(COMEX,ETFs, LBMA) and the Euro marks its gold holdings to market every 3 months. (The US treasury has its gold marked at $42 per oz)

The Bank for International Settlements started designing the Euro in 1962. They realized that they needed to create a currency that could out-live the Dollar/Fed. I will cut to the important part...

Since gold is priced in dollars, every time the dollar falls, gold rises. In order for the Euro to capture the loss in the US dollar, the ECB floats the price of gold on the asset side of its balance sheet. If the dollar falls by 50% say, gold will rise by 50%, as will the asset side of the ECB balance sheet. Allot of people think the US has the most gold but the Euro zone as a whole has more.(10,000 tons)

the Euro has a good chance of replacing the dollar.

increasing the asset side also mean increasing the liability side,

that's how they create money, as gold goes up, they can issue more "notes"

so it's really not different from what the Fed is doing, creating money through debt, using instead Gold as the exchange rate

Originally Posted by Butterfly

increasing the asset side also mean increasing the liability side,

that's how they create money, as gold goes up, they can issue more "notes"

so it's really not different from what the Fed is doing, creating money through debt, using instead Gold as the exchange rate

You better go explain your case to the Bank for International Settlements.

Do think I made this up ?

Originally Posted by socal

Do think I made this up ?

of course not, you did a copy/paste without even understanding what they meant

so the higher price of Gold is now "financing" the growth of the EURO money supply,

awesome !!!

Originally Posted by Butterfly

tell us about your latest gold buy ? did you hide it under your bed ?

I trust he has an official certificate to uphold the official certificate. Always have been curious as to how easily folks are taken in. Meaningless paper = wealth. Electronic numbers = wealth. And the more common affliction, credit = wealth.

^ RS
Would you buy gold in a Chinese Gold exchange in Bangkok?

Does anyone know anything about Canadian gold coins?

I will buy your USD for 32

Originally Posted by Butterfly

I will buy your USD for 32

....it's coming. Be patient, lad.

Originally Posted by Butterfly

Originally Posted by socal

Do think I made this up ?

of course not, you did a copy/paste without even understanding what they meant

so the higher price of Gold is now "financing" the growth of the EURO money supply,

awesome !!!

Don't worry about it. This stuff is way over your head.

[quote=Rural Surin;1591259]

Originally Posted by Butterfly

tell us about your latest gold buy ? did you hide it under your bed ?

I trust he has an official certificate to uphold the official certificate.

I own 100% physical gold and I could prove it.

Always have been curious as to how easily folks are taken in. Meaningless paper = wealth. Electronic numbers = wealth. And the more common affliction, credit = wealth.

hahaha, the irony ! ^look what the anti gold disillusionist just said.

You just defined the US dollar.(meaningless paper,electronic numbers).

So Rural Surin, what would you do if you had a $100,000 dollars(credit, paper, electronic numbers) to invest today ?

Originally Posted by Tom Sawyer

Tell you what, I'll buy property in my home country through leverage on existing feeholds, rent them out to people who can't afford to buy, and invest in more property. You guys can buy all the gold you like - and even stupider, all the corporate bonds you like.

At the end of the day, the corporate bond won't keep you dry and the gold won't fill your stomach if it loses value.

Buy property here? No thanks.

Leverage... Have you made your calculations assuming 8 to 10% interest rates ?

If there is 8 to 10% rates, a majority of people will go broke. What will happen to the currency that is backed by the debt that the people are defaulting on ? It will go down in value.(inflation)

It will be the people with gold that are buying up all the property in that scenario.

And 10% interest rates(bond prices falling) could never happen right...Never.

^
That's when ya hike the rent 10% mate.

Originally Posted by Tom Sawyer

^
That's when ya hike the rent 10% mate.

Nope, thats not how markets work.

the renters are not going to pay more for rent when the cost of housing is going down.(interest rates up=house prices down.)

^
You're assuming they've all found the money to buy again.

Originally Posted by Rural Surin

Originally Posted by Butterfly

I will buy your USD for 32

....it's coming. Be patient, lad.

Be very patient...it's heading for 29, then 28, then buttfrier can work out the next number as he waits for 32.

Originally Posted by Tom Sawyer

^
That's when ya hike the rent 10% mate.

Yep, and a bit for admin if the council's paying.

Originally Posted by socal

There is no possible mathematical way that gold can crash in the next 10 years.

How can the current gold boom possibly be any different from any other past booms (and busts)?

Originally Posted by Tom Sawyer

You're assuming they've all found the money to buy again.

indeed, during property crash it's not unusual to see renting going up, so at the end your yield is boosted by the decreasing asset value and the extra income you can squeeze from former home owners

Yep - I recall that's exactly what happened in the early-mid 80's - as mortgage rates hit 20%.

And Socal will love this...those high interest rates coincided with the collapse in gold price. One could make far more in the bank on simple interest than stuffing gold bars inside their mattress.

the only reason you have Gold going up is for speculative reason, doesn't matter about the Fundamental, they don't justify those price levels

same with Oil, there was no fundamental to push oil above 100 despite what certain individuals were claiming, it was all hype

it's not an incident that all the scams these days are in Gold, or Gold related securities. Even the evil doers of Faux are into it. That alone is a signal that you are dealing with a marketing hype.

As Rockefeller once famously said (roughly), when the elevator concierge tells you he has a hot tip on a stock to buy, you will know it's time to sell...everything