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buy gold. bullion if you can instead of futures. no currency is stable at this point. hyperinflation will wipe out a lot of wealth.

by len 18y ago

rscott 18y ago
Not to be a bastard, but hyperinflation is a very rare and distinct phenomenon, not just to be thrown around when the economy turns sour. Real hyperinflation is occurring in Zimbabwe, not Canada or the US.
- len 18y ago
  yes, it is rare. hyperinflation occurs in destabilized economies that have too much printed cash relative to physical assets (to oversimplify a bit). the US govt has printed too much money and keeps going further with stimulus packages and bailouts. the dollar is strong, currently, because it is the default fiat currency of the world. at some point the US will not be able to sell more bonds or the foreign creditors will dump dollars on the market or any number of other things can happen to trigger inflation. you don't have to agree, but i would bet that hyperinflation will hit.
- jacquesm 18y ago
  It occured in Poland not that long ago, and there is a chance it will happen in other countries, if oil transactions would switch to another currency I wouldn't be surprised to see such a thing happen to the US dollar. There are some people out there that say that the Iraq war was to stop the US dollar from crashing because Saddam was going to switch to the euro for his oil transactions. I know that's typical conspiracy nut fodder, but it may have a kernel of truth.
icey 18y ago
... Not sure if you're joking or not, but gold is very inflated right now because everyone is panicking and running to it.
- len 18y ago
  using the word 'inflated' assumes that the stock market has overreacted on the negative side. this is not the case, in my estimation. the significant spread between bullion and future contracts is also telling.
oldgregg 18y ago
in a hyper-hyper-inflation economy the only "stable" thing would be firearms and LOTS of ammo.
- eru 18y ago
  We had hyperinflation in the early 20ies in Germany. The country survived that --- though in a bad shape. At the end of the twenties / early thirties, we had a deflation (like you in America) and the Nazis came. Choose your poison.
vaksel 18y ago
gold is pretty much at it's peak at this point. It can't really go above 1000, so its just a way to freeze your money w/o a chance to grow it, but with a chance for it to lose its value.
- hachiya 18y ago
  Could you explain why gold can't go above $1000?
- laut 18y ago
  It has already been above $1000 before. In the beginning at the month it was at around $900. Now it's at $975, so it's very close to $1000. How do you know gold is at its peak? With fiat money there is a risk for a high rate of inflation. That doesn't happen with gold.
  - deleted 18y ago
    [deleted]
  - icey 18y ago
    Sorry, I just typed out a reply to this and deleted it because I can't speak to the details adequately enough for my liking. The gist of it was that gold is also subject to monetary pressures because its price is a reflection of the fact that it is used as a financial instrument. (In other words, gold's value is tied to the fact that it is used as currency).
    - akkartik 18y ago
      One can print more dollars (and that's happening). One can't increase gold supply nearly that easily.
      - icey 18y ago
        Except one can also retire currency to shore up devaluation at a later date. You can't un-mine gold. Gold's value doesn't directly correlate to supply and demand or it would continuously go down in value. We're still pulling it out of the ground pretty regularly, and as far as I'm aware, nobody is putting it back.

buy gold. bullion if you can instead of futures. no currency is stable at this point. hyperinflation will wipe out a lot of wealth.

by len 18y ago

buy gold. bullion if you can instead of futures. no currency is stable at this point. hyperinflation will wipe out a lot of wealth.

rscott 18y ago

Not to be a bastard, but hyperinflation is a very rare and distinct phenomenon, not just to be thrown around when the economy turns sour. Real hyperinflation is occurring in Zimbabwe, not Canada or the US.

len 18y ago
yes, it is rare. hyperinflation occurs in destabilized economies that have too much printed cash relative to physical assets (to oversimplify a bit). the US govt has printed too much money and keeps going further with stimulus packages and bailouts. the dollar is strong, currently, because it is the default fiat currency of the world. at some point the US will not be able to sell more bonds or the foreign creditors will dump dollars on the market or any number of other things can happen to trigger inflation. you don't have to agree, but i would bet that hyperinflation will hit.
jacquesm 18y ago
It occured in Poland not that long ago, and there is a chance it will happen in other countries, if oil transactions would switch to another currency I wouldn't be surprised to see such a thing happen to the US dollar. There are some people out there that say that the Iraq war was to stop the US dollar from crashing because Saddam was going to switch to the euro for his oil transactions. I know that's typical conspiracy nut fodder, but it may have a kernel of truth.

icey 18y ago

... Not sure if you're joking or not, but gold is very inflated right now because everyone is panicking and running to it.

len 18y ago
using the word 'inflated' assumes that the stock market has overreacted on the negative side. this is not the case, in my estimation. the significant spread between bullion and future contracts is also telling.

oldgregg 18y ago

in a hyper-hyper-inflation economy the only "stable" thing would be firearms and LOTS of ammo.

eru 18y ago
We had hyperinflation in the early 20ies in Germany. The country survived that --- though in a bad shape. At the end of the twenties / early thirties, we had a deflation (like you in America) and the Nazis came. Choose your poison.

vaksel 18y ago

gold is pretty much at it's peak at this point. It can't really go above 1000, so its just a way to freeze your money w/o a chance to grow it, but with a chance for it to lose its value.

hachiya 18y ago
Could you explain why gold can't go above $1000?
laut 18y ago
It has already been above $1000 before. In the beginning at the month it was at around $900. Now it's at $975, so it's very close to $1000. How do you know gold is at its peak? With fiat money there is a risk for a high rate of inflation. That doesn't happen with gold.
- deleted 18y ago
  [deleted]
- icey 18y ago
  Sorry, I just typed out a reply to this and deleted it because I can't speak to the details adequately enough for my liking. The gist of it was that gold is also subject to monetary pressures because its price is a reflection of the fact that it is used as a financial instrument. (In other words, gold's value is tied to the fact that it is used as currency).
  - akkartik 18y ago
    One can print more dollars (and that's happening). One can't increase gold supply nearly that easily.
    - icey 18y ago
      Except one can also retire currency to shore up devaluation at a later date. You can't un-mine gold. Gold's value doesn't directly correlate to supply and demand or it would continuously go down in value. We're still pulling it out of the ground pretty regularly, and as far as I'm aware, nobody is putting it back.