Thread: I changed my investments

Short the dollar... buy gold.

Stay out of bonds... when the interest rates go up (controlled or not... they can't stay at zero) bonds will drop in price as they adjust to the rate rise.

Nothing technically is safe.

If you put it under your mattress, inflation could hit rampantly, and your money is next to worthless.
If you put it in an interest bearing CD (or bonds) earning 1-3%, inflation could hit rampantly just as if you kept your money under your mattress.
If you buy gold, the economy could turn around and the value of the gold you own could drop by 75%.
If you buy land, the economy could get worse, and your land values could drop by 50% or more.
If you start a business, the economy could get worse and you lose your customer base and go bankrupt.
I won't even go into the discussion of stocks. Its russian roulette with your money instead of your brains.

The best thing you can do is try to own tangible assets that are debt free. That's not perfect insulation from catastrophe, but its about the best option available.

Canned goods.

Originally Posted by tsquare

Short the dollar... buy gold.

Stay out of bonds... when the interest rates go up (controlled or not... they can't stay at zero) bonds will drop in price as they adjust to the rate rise.

Definitely not bonds. It would be better to cash out and pay the tax than go that route.
The problem with gold is I waited to late.

Originally Posted by iamwhatiseem

Definitely not bonds. It would be better to cash out and pay the tax than go that route.
The problem with gold is I waited to late.

I personally don’t think you have. There is still upside to be had. We have not peaked inho. In the 80's, in adjusted dollars gold went over 2K .....theres running room left, Obama, Israel etc. will see to it.

Originally Posted by Disillusioned_1

Nothing technically is safe.

If you put it under your mattress, inflation could hit rampantly, and your money is next to worthless.
If you put it in an interest bearing CD (or bonds) earning 1-3%, inflation could hit rampantly just as if you kept your money under your mattress.
If you buy gold, the economy could turn around and the value of the gold you own could drop by 75%.
If you buy land, the economy could get worse, and your land values could drop by 50% or more.
If you start a business, the economy could get worse and you lose your customer base and go bankrupt.
I won't even go into the discussion of stocks. Its russian roulette with your money instead of your brains.

The best thing you can do is try to own tangible assets that are debt free. That's not perfect insulation from catastrophe, but its about the best option available.

Gold down by 75% to approximately $300? I would expect to see 10 ft tall blue aliens with funky tails physically land on earth before I would expect to see that. I will address your reply before you make it. Volcker raised rates into the teens to save the dollar in the early eighties, thereby starting gold on its multi-decade downtrend. Bernanke can't afford to raise rates to 1% in this economy, let alone into the teens.

Originally Posted by Imperator

I personally don’t think you have. There is still upside to be had. We have not peaked inho. In the 80's, in adjusted dollars gold went over 2K .....theres running room left, Obama, Israel etc. will see to it.

Over 2K when adjusted for "official" inflation. Real inflation has been significantly higher than the government's phony calculations.

Our Dreyfus China fund is up 100% from last year. There's still money to be made out there.

Bullets, seeds and spare parts.

Originally Posted by smurf

Gold down by 75% to approximately $300? I would expect to see 10 ft tall blue aliens with funky tails physically land on earth before I would expect to see that. I will address your reply before you make it. Volcker raised rates into the teens to save the dollar in the early eighties, thereby starting gold on its multi-decade downtrend. Bernanke can't afford to raise rates to 1% in this economy, let alone into the teens.

The main thing that would turn the price of gold around would be an improvement in the economy. Gold was ~$300 per ounce as recently as 2001. Since the stock market hit 1998 levels recently, it wouldn't be a stretch to see gold bounce back to levels a decade earlier (given a dramatic change in economics).

Even if it only drops 10%, thats inferior to putting your money under your mattress (assuming no inflation). 75% was about as low as I'd expect gold to realistically drop even if the economy experienced a miracle.

Originally Posted by pramjockey

Our Dreyfus China fund is up 100% from last year. There's still money to be made out there.

I don't give a shit if I lose it all I will not invest in China.
I have higher standards than to invest my money in a place that directly hurts this country...where my children and my childrens children will live.

Originally Posted by iamwhatiseem

I don't give a shit if I lose it all I will not invest in China.
I have higher standards than to invest my money in a place that directly hurts this country...where my children and my childrens children will live.

Well, I s'pose that's one way to look at it.

Originally Posted by pramjockey

Well, I s'pose that's one way to look at it.

It is the only way to look at it, if you want to look into the mirror without knowing you are a part of the problem.