This Is What Gold Does in a Currency Crisis

[Sparky]

"Right now, the fear is country-specific. Europeans start to distrust their government and shift to gold, without necessarily questioning foundational concepts like big, activist government and central bank management of fiat currencies. They still assume that the euro would be fine if managed correctly.

The next stage will begin when enough local currencies blow up to make people realize that the problem isn’t with specific governments or national forms of money, but with the idea of fiat currency itself. When that happens the global gold chart will look like Europe’s — but with more zeros."

This Is What Gold Does in a Currency Crisis (http://dollarcollapse.com/gold/this-is-what-gold-does-in-a-currency-crisis-euro-edition/)

[osoab]

Why doesn't the author bring up the eur/usd and cad/usd rate changes too when compared to the gold charts?

[Sparky]

Why doesn't the author bring up the eur/usd and cad/usd rate changes too when compared to the gold charts?

Yes, currency exchanges are a factor in the whole equation. But I think his point is that a currency crisis is reflected in a rise in gold price, which implies that gold actually has some trusted value. You could draw the same chart in terms of, say, the price of eggs and it would look similar. But the whole world recognizes that eggs have value. So the gold price in local currency seems to confirm that gold continues to have universally accepted value even though it does not "back" any currency, and it has been declared an obsolete barbarous relic. One could even argue that this observation demonstrates that gold does, in fact, back all fiat currency, regardless of what governments say.

[gunDriller]

One could even argue that this observation demonstrates that gold does, in fact, back all fiat currency, regardless of what governments say.

= De Facto Gold Standard.

[palani]

When your currency is this large (Rai stones) you don't need a bank.

http://upload.wikimedia.org/wikipedia/commons/thumb/3/30/Rai_stone_from_Yap_currency.jpg/220px-Rai_stone_from_Yap_currency.jpg

There are other ways to keep your wealth out in the open yet safe from theft

https://s-media-cache-ak0.pinimg.com/736x/d5/d2/e0/d5d2e057d97d1b8b6d47742a221aaef6.jpg

[JohnQPublic]

Yes, currency exchanges are a factor in the whole equation. But I think his point is that a currency crisis is reflected in a rise in gold price, which implies that gold actually has some trusted value. You could draw the same chart in terms of, say, the price of eggs and it would look similar. But the whole world recognizes that eggs have value. So the gold price in local currency seems to confirm that gold continues to have universally accepted value even though it does not "back" any currency, and it has been declared an obsolete barbarous relic. One could even argue that this observation demonstrates that gold does, in fact, back all fiat currency, regardless of what governments say.

I do not think eggs are a good example. When I wrote my silver article, which is on the main website, eggs were the one thing that did not change price much over the last hundred years (in dollars).

[osoab]

Yep, a currency crisis.

http://finviz.com/fut_image.ashx?gc.png&rev=635581359487271786

[gunDriller]

a Sovereign for $290 is very tasty.

but that only happens when Gold is in the $1100's.


a Sovereign at today's price is tasty too.

[Dogman]

a Sovereign for $290 is very tasty.

but that only happens when Gold is in the $1100's.


a Sovereign at today's price is tasty too.

Humm?

Any relationship?

http://gold-silver.us/forum/attachment.php?attachmentid=7242&stc=1

Soft foods only, right but lots of carrots !

[ComputerYe]

Because of the current currency crisis, people are losing their faith on investing in these currencies and instead of that they are preferring for the trusted and safe investment like investing in gold.

[Jewboo]

Because of the current currency crisis, people are losing their faith on investing in these currencies and instead of that they are preferring for the trusted and safe investment like investing in gold.





http://formation-bts-assurances.esaassurance.com/images/mba_gestion_de_patrimoine_programme/13.jpg


Where can we find more of this Wisdom?

Do you have a blog or website we can bookmark? A newsletter we can subscribe to? A book we can purchase at Amazon?

http://m.memegen.com/me0ckp.jpg


:rolleyes:

[Horn]

Wait for a renewed interest in Bitcoins to offset any recent gains in precious metals.

by design of course.

[Shami-Amourae]

Wait for a renewed interest in Bitcoins to offset any recent gains in precious metals.

by design of course.


https://www.youtube.com/watch?v=VpOeSSy_9n8
This Libertarian investment bullshit is somewhat of a a religious cult.

I don't see a lot going for Bitcoin now (a sign to buy!)

There's a lot of problems with the infrastructure now which is causing there to be a lack of dumb money coming in.

I wouldn't be shocked if some great new crypto comes along and replaces it. I do think the bankers want to have their own crypto, and if this is forced, then something like Bitcoin would be smart since people will want a safe alternative. It's still good to have some as a backup plan or to have some untraceable method of payment.


It seems all of the great investment opportunities the Libertarians have proposed have turned to fucking shit.

Gold and Silver are a big mystery. Gold could drop to $300 or $5000 for all I know.

I do know that when my gut tells me not to do something I should do it, and vice versa.


https://www.youtube.com/watch?v=nPsiVCfd-XI

[Jewboo]

I don't see a lot going for Bitcoin now..There's a lot of problems with the infrastructure now...It seems all of the great investment opportunities the Libertarians have proposed have turned to fucking shit.



http://exabay.com/images/mill3.jpg


I kinda remember you mining Bitcoins with video cards?

If so, what did that teach you that you can now, in hindsight, teach us?


http://images.dvdtalk.com/images/smilies/shrug.gif

[osoab]

I don't see a lot going for Bitcoin now (a sign to buy!)
]

I was listening to NPR a couple of days ago and they were hyping the cyrpto's and Bitcoin in particular.

[BrewTech]

Because of the current currency crisis, people are losing their faith on investing in these currencies and instead of that they are preferring for the trusted and safe investment like investing in gold.So, Ye, what do ya do for fun?

[Horn]

I was listening to NPR a couple of days ago

I'm trusting you don't subject the rest of the family to that propaganda in the car.

Cause I know they don't make headphones for Mooses. :)

http://www.truthorfiction.com/images/Moosehunter2.JPG

[osoab]

I'm trusting you don't subject the rest of the family to that propaganda in the car.

Cause I know they don't make headphones for Mooses. :)

http://www.truthorfiction.com/images/Moosehunter2.JPG

If Moochele can wear headphones, I can wear headphones.

[Hitch]

Because of the current currency crisis, people are losing their faith on investing in these currencies and instead of that they are preferring for the trusted and safe investment like investing in gold.

Welcome back, ComputerYe!!

[Horn]

If Moochele can wear headphones, I can wear headphones.

You won't be able to hear Willis talkin bout gold that way.

[Shami-Amourae]

http://exabay.com/images/mill3.jpg


I kinda remember you mining Bitcoins with video cards?

If so, what did that teach you that you can now, in hindsight, teach us?


http://images.dvdtalk.com/images/smilies/shrug.gif

Mining Bitcoins and other Altcoins was only profitable early on. I knew it would scale up and become unprofitable over time. It was designed that way and I knew that from the start.

Well with all of my investments I was correct early on. My problem is I'm too clingy to sell when I have gains, and hold the bag while prices drop down since I believe the stories over the simple fact of how humans act in herds. The thing with investing is to buy the rumor and sell the news.

I originally purchased Bitcoin back when it was $4. I bought a lot on the way up to $30. I sold most of it around $16. I would have come up on top but a lot of my Bitcoins were stolen. I still think Bitcoin is a very useful thing to have and use, but don't expect to get rich with it. It's a great way to move a million dollars out of the country without anyone batting an eye or noticing. You can't do that with electronic or physical dollars, Gold, or Silver. Nothing else does that.

Bitcoins, Gold, and Silver were great investments early on, but the smart thing was to get out before everyone and their dog knew about it and you started seeing ads everywhere.

Right now I mainly only invest in guns and ammo. I think I'm almost done there too since I'm getting all the guns I want for various scenarios like hunting and SHTF. Also we don't know what will be legal or illegal the next year.

I want to save and buy real estate here in the Magic Valley. The real estate market is very prime here and prices are going up with the supply and demand (the population and economy are booming.)

The only stable investments I've had were Palladium and guns/ammo. The only investments I've seen go up in value were some of the guns/ammo, food storage, and supplements/vitamins.

At the end of the day I make more money making dragon dicks (http://bad-dragon.com) than I do buying and holding Gold and Silver. Conclusion: Make more dicks.

[Jewboo]

Conclusion: Make more dicks.




http://i00.i.aliimg.com/photo/v0/60076743340/200L_drum_general_purpose_bulk_silicone_for.jpg


http://www.styleite.com/news/show-you-really-love-fantasy-with-a-nox-the-nightdrake-dragon-dck-dildo/


:o