$8k budget
Former Member
Joined: Apr 2012
Posts: 2,573
Likes: 2
From: USA
In 1933, gold was worth $26.33 per oz. Today, it is worth $1167.80 per oz. That is 44x higher.
That is pretty good compared to inflation (loss of purchasing power of the US Dollar) because things cost about 18x more today than they did in 1933. Things that cost more than 18x generally have more features and benefits.
Money invested in the Dow 30 stocks in 1933, with dividends reinvested, is worth 4,400x higher today.
Money invested in a good mutual fund in 1933, with dividends reinvested, is worth 11,000x higher today.
Owning well run companies, with pricing power, is the best long term protection of purchasing power.
Owning commercial real estate with those kinds of companies as tenants is the best intermediate term protection of purchasing power.
Owning precious metals really only protects purchasing power during short term panics that are inflationary.
I understand your concerns, but reason and logic will prevail over fear.
I do this stuff for a living. I have two masters degrees related to these subjects and eight professional designations. I teach finance, banking, financial markets, and investments as an adjunct professor. I have 24 years' experience in financial, tax, business, and investment planning.
Buying a silver coin for $22, when the silver is worth $16, and the resale value of the coin is $12-$14, only protects the purchasing power of the coin dealer, not the investor.
That is pretty good compared to inflation (loss of purchasing power of the US Dollar) because things cost about 18x more today than they did in 1933. Things that cost more than 18x generally have more features and benefits.
Money invested in the Dow 30 stocks in 1933, with dividends reinvested, is worth 4,400x higher today.
Money invested in a good mutual fund in 1933, with dividends reinvested, is worth 11,000x higher today.
Owning well run companies, with pricing power, is the best long term protection of purchasing power.
Owning commercial real estate with those kinds of companies as tenants is the best intermediate term protection of purchasing power.
Owning precious metals really only protects purchasing power during short term panics that are inflationary.
I understand your concerns, but reason and logic will prevail over fear.
I do this stuff for a living. I have two masters degrees related to these subjects and eight professional designations. I teach finance, banking, financial markets, and investments as an adjunct professor. I have 24 years' experience in financial, tax, business, and investment planning.
Buying a silver coin for $22, when the silver is worth $16, and the resale value of the coin is $12-$14, only protects the purchasing power of the coin dealer, not the investor.
I'm sure Ben Bernanke (Harvard) & Janet Yellen (Yale) have just as much credentials if not more. Look where that has gotten the country. BIG-BANKER sellouts come in all flavors.
It's not fear when the majority of world's Central Bankers are diverting out of the US Dollar & Treasuries & increasing their Gold allocations while the USSofA debt monetizes their way to infinity. It's called "playing it smart."
But who knows? Maybe the people handling all of these other countries assets are all conspiracy theorists...
Last edited by DJ1; Jul 6, 2015 at 10:43 AM.
Forum Tech Advisor
Joined: Jan 2008
Posts: 1,208
Likes: 11
From: Billings, MT
Yeah.
It's hard to debunk conspiracy myths in a side note.
People spend 20-200 hours reading stuff on the internet from newsletter writers and precious metals sellers, and they believe they understand how things work more than those with 40,000 hours working in and researching both objective and subjective sources and studies.
By the way, the U.S. Dollar is strengthening against other currencies. Precious metal prices are dropping. The opposite would be happening if there was a mass exodus from U.S. dollars to buy gold. This is simple economics. QE is over in the U.S.
It's hard to debunk conspiracy myths in a side note.
People spend 20-200 hours reading stuff on the internet from newsletter writers and precious metals sellers, and they believe they understand how things work more than those with 40,000 hours working in and researching both objective and subjective sources and studies.
By the way, the U.S. Dollar is strengthening against other currencies. Precious metal prices are dropping. The opposite would be happening if there was a mass exodus from U.S. dollars to buy gold. This is simple economics. QE is over in the U.S.
Forum Tech Advisor
Joined: Jan 2008
Posts: 1,208
Likes: 11
From: Billings, MT
I'm sure Ben Bernanke (Harvard) & Janet Yellen (Yale) have just as much credentials if not more. Look where that has gotten the country. BIG-BANKER sellouts come in all flavors. It's not fear when the majority of world's Central Bankers are diverting out of the US Dollar & Treasuries & increasing their Gold allocations while the USSofA debt monetizes their way to infinity. It's called "playing it smart." But who knows? Maybe the people handling all of these other countries assets are all conspiracy theorists...
QE is over in the U.S. There is no meaningful monetization of debt happening at this point.
The Central Bankers are not selling dollars to buy gold. If this were the case, the value of the U.S. Dollar would be falling rather than growing, and the value of gold would be growing rather than falling.
So, the world's Central Bankers aren't conspiracy theorists. They are trying to copy what the Fed did in the U.S. The ECB is doing QE. Japan is buying U.S. dollars and treasuries in an attempt to devalue the Yen and strengthen the Dollar to increase exports to the U.S.
Wherever you are getting your information from is outright lying in an attempt to sell newsletters and subscriptions, or earn commissions from selling precious metals.
JK Junkie
Joined: Feb 2013
Posts: 2,013
Likes: 0
From: West Richland Washington
The Fed prevented Great Depression #2 and literally 1000s of bank failures.
QE is over in the U.S. There is no meaningful monetization of debt happening at this point.
The Central Bankers are not selling dollars to buy gold. If this were the case, the value of the U.S. Dollar would be falling rather than growing, and the value of gold would be growing rather than falling.
So, the world's Central Bankers aren't conspiracy theorists. They are trying to copy what the Fed did in the U.S. The ECB is doing QE. Japan is buying U.S. dollars and treasuries in an attempt to devalue the Yen and strengthen the Dollar to increase exports to the U.S.
Wherever you are getting your information from is outright lying in an attempt to sell newsletters and subscriptions, or earn commissions from selling precious metals.
Former Member
Joined: Apr 2012
Posts: 2,573
Likes: 2
From: USA
The Fed prevented Great Depression #2 and literally 1000s of bank failures.
QE is over in the U.S. There is no meaningful monetization of debt happening at this point.
The Central Bankers are not selling dollars to buy gold. If this were the case, the value of the U.S. Dollar would be falling rather than growing, and the value of gold would be growing rather than falling.
So, the world's Central Bankers aren't conspiracy theorists. They are trying to copy what the Fed did in the U.S. The ECB is doing QE. Japan is buying U.S. dollars and treasuries in an attempt to devalue the Yen and strengthen the Dollar to increase exports to the U.S.
Wherever you are getting your information from is outright lying in an attempt to sell newsletters and subscriptions, or earn commissions from selling precious metals.
QE is over in the U.S. There is no meaningful monetization of debt happening at this point.
The Central Bankers are not selling dollars to buy gold. If this were the case, the value of the U.S. Dollar would be falling rather than growing, and the value of gold would be growing rather than falling.
So, the world's Central Bankers aren't conspiracy theorists. They are trying to copy what the Fed did in the U.S. The ECB is doing QE. Japan is buying U.S. dollars and treasuries in an attempt to devalue the Yen and strengthen the Dollar to increase exports to the U.S.
Wherever you are getting your information from is outright lying in an attempt to sell newsletters and subscriptions, or earn commissions from selling precious metals.
QE is over after having TRILLIONS printed and the country (as well as the rest of the world handcuffed to western banking) is now in much worse condition than they were in 2008.
At least now I know where you stand.Central Bankers are no longer buying US Treasuries with the main exception, the US prints so it could buy it's own debt instead.
And because the bond market is in the largest financial bubble in history, every other asset is in a bubble. All paper asset classes will be wiped out and the sad thing is I bet 99% of the people here on this forum have no idea of what we're talking about yet 100% of their retirement accounts are sitting in paper unless they are fortunate enough to have paid off their house note (even that is debatable with MERS fraud) and people like you talked them out of diversifying a portion into PM's because it's all conspiracy talk.
Talk about cattle going to the slaughterhouse.
Credit markets showing shrinking liquidity, little volume. Unable to offload even at a discount because at discount all the QUADRILLIONS IN FRAUDULENT CREDIT DERIVATIVES to which these bonds serve collateral for would have to be adjusted. The CDS market that nearly took down the financial system in 2008 is only 1/10th of what is now in place.
As I said in my other thread, kiss your retirement plans and pensions goodbye.
I don't get subscriptions. I have enough financial designations to warrant my own but hey, there's a sale on some Made In China LED bars so at least we've got that going for us.
JK Freak
Joined: Sep 2011
Posts: 948
Likes: 1
From: Rochester Mn.
The Fed prevented Great Depression #2 and literally 1000s of bank failures.
QE is over in the U.S. There is no meaningful monetization of debt happening at this point.
The Central Bankers are not selling dollars to buy gold. If this were the case, the value of the U.S. Dollar would be falling rather than growing, and the value of gold would be growing rather than falling.
So, the world's Central Bankers aren't conspiracy theorists. They are trying to copy what the Fed did in the U.S. The ECB is doing QE. Japan is buying U.S. dollars and treasuries in an attempt to devalue the Yen and strengthen the Dollar to increase exports to the U.S.
Wherever you are getting your information from is outright lying in an attempt to sell newsletters and subscriptions, or earn commissions from selling precious metals.
QE is over in the U.S. There is no meaningful monetization of debt happening at this point.
The Central Bankers are not selling dollars to buy gold. If this were the case, the value of the U.S. Dollar would be falling rather than growing, and the value of gold would be growing rather than falling.
So, the world's Central Bankers aren't conspiracy theorists. They are trying to copy what the Fed did in the U.S. The ECB is doing QE. Japan is buying U.S. dollars and treasuries in an attempt to devalue the Yen and strengthen the Dollar to increase exports to the U.S.
Wherever you are getting your information from is outright lying in an attempt to sell newsletters and subscriptions, or earn commissions from selling precious metals.
So we are not suppose to believe anyone else except you on all of this money talk and believe you because you teach at some college and you know everything about what is going on yea right!talk
Back to this gentleman and ideas for him to do a build on his Jeep! And to spend his money carefully.