RG2009

Dollar to Lose Reserve Status - But Is There an Alternative Currency?

We all agree that some currencies are undervalued as we speak, and in some cases the comparative value of such currencies are intentionally kept low, such is the case of the RMB and even the HKD and MOP to some extent. I believe that with time, one of two things will happen. Either a new currency will emerge as the new reserve currency after a revision of the "reserve currency" definition or general acceptance, or currencies will beging their upgrading towards real valuation.

A compromise between both is also plausible, and it that case, i would favor the RMB on the long run, even if some disagree. In either cases, i agree that the USD will lose value, even though some "analysts" have said there will be a bull-run on the USD (once we accept that past patterns will repeat themselves).

Therefore, trading your USD for Gold is to some extent a good plan to hedge against this devaluation, since in the end, no matter which currency we look at as our "reserve currency", people will still look at the shiny golden metal in the same way as we have always did since the dawn of civilization.

We have to keep in mind that the USD used to be redeemable in Gold, characteristic which has been taken off the bills a long time ago. It is now "legal tender". Fascinating, isn't it?

Is the U.S. Dollar Headed for a Mighty Crash? Part II

Hmm..ok.. :-)

First, i did not mention to throw all your money into Gold, i did specify "some", and "somewhere in your portfolio", i.e. whether bullion, GLD or even gold mining. Besides, it would be very unhealthy for the market if we all invest in the same manner. What makes the market what it is is diversity. And for the record, i also invest in other markets than precious metals, which matches the good practice of diversification that we should all apply ("Never put all your eggs in one basket").

Besides, such forums as this one are designed to share our thoughts, not to compare our wealth. If you want to compare our respective wealth in a decade or two, you will compare alone. Success is a personal measure, everyone here has their goals.

Your optimism in regards to improving life is a valid reason to invest, a respectable one i should say. No need to impose it on others however. Again, we all have our motivation and motives to invest.

If you have other thoughts, please feel free to share them.


On May 23 09:18 PM rockingandrolling wrote:

> Gold bugs have been preaching this same old tune as long as I can
> remember. So YOU buy gold and lock it in a safe deposit box.
>
> I prefer to invest in ideas, new technology, new drugs, things to
> improve life.
>
> In 10 - 20 years let's see who has more money....

Is the U.S. Dollar Headed for a Mighty Crash? Part II

Very interesting indeed, lots of homework to be done here everyone. It is obvious the US cannot "get away with murder" here. It's not as if the US can simply go bankrupt and start anew under another name, unlike many companies do!

In the end, the search for a new international currency for trading becomes interesting. And as much as some people wrote that Gold does not have the same place it used to have, well guess what, it still does. History does not guarantee the future, but it is indeed a very good indicator. The currency and economic situation is not sustainable, and buying time is only temporary, the truth surfaces and people eventually become aware of it. I believe in the work we do and the experiences we share amongst ourselves rather than listening to what the news and the government have to say, and i have to insist that it has been working. Morale of the story: stay critic and observant and make use of great common sense.

I hope you all have some Gold somewhere in your portfolio.

The Regression of Risk: Gold, Treasury ETFs

I agree with you. I still believe Gold had interesting things in store by the end of 2009 and beyond.

Currency Illusions and the Gold Price Suppression

Ahh gold...the planet revolves around a metal we agree to have a certain value. Very special when you come to think about it. Anyways, hyperinflation: brace yourself, i believe we're going to get it!

Could the Dow Sink Another 50% by 2012?

Since some of you mentioned gold versus the price of the DOW, i'll chip in my opinion. DOW at 3800 = Gold aroud 4000. I'm uncertain whether DOW will actually make it to 3800, i would assume more like 5000. Whichever the case, since i am a believer of hyperinflation, i feel gold will reach 3500 by the end of 2011.

Why Gold Is Overpriced

Cesato:

Interesting analysis, although some of my beliefs differ a tad from yours, especially towards the end of 2009. I do not believe gold will get lower than the 850. However, preparing for such a possible event is beneficial and is a good advice to take into consideration. In the end, i am bullish as well for gold for the next 3 years. Once it starts to pick up, it will not be looking back. As far as i am concerned, i mostly concentrate on mining production and exploration. It has produced a 50% year-to-date yield for me so far, and what i thought was initially a short run will extend for the next years.

Thank you all for your comments, with our heads combined we can achieve miracles.

Why Gold Is Overpriced

Sorry, i meant overpriced. Sorry, my mistake.

Why Gold Is Overpriced

I'm definitely not impressed by this sort of analysis. Gold is nowhere near underpriced, and being bearish about it seems like outright nonsense to me. Then again, its just my opinion...and that of many other blogs and articles i've read...but then, we could be all wrong! What are the odds? Time will tell.