So time to hold USD or Gold or either....?

 

Can't wait till HKX reopens tomorrow, going to be another blood bath.

 

I'm a strong believer is holding USD as a Canadian resident. They were some great buying opportunities; 2 years ago, I could buy 1 USD for 1.03 CAD, and even a year a ago 1 USD cost me 1.09 CAD. Now 1 USD would cost 1.31 CAD. Great return on investment.

 

Gentlemen, the whole world is going to Hell in a hand basket. The experiment has almost run it's course.

 

The mice have almost finished, so all the dolphins have left???

 

Venezuela? Take a look at Brazil, Japan, much of Europe, the U.S., etc.

There is a crisis on the near horizon that will make 2008 seem like a warm-up. And as the race to devalue and degrade currencies accelerates (see China most recently), gold will increase significantly in value. It has been unique store of value for thousands of years, and will soon come into its own yet again in that regard.

In fact, while gold has declined in USD about 6% since I crunched these numbers on July 4, they still illustrate clearly why thinking about the metal only in U.S. Dollar terms is a mistake, and often used for propaganda purposes.

Percentage changes in the value of gold against these currencies for a two year period ending on July 4, 2015:

+11% Euro

+11% Danish Kroner

+18% Japanese Yen

+20% Swedish Kroner

+22% Norwegian Kroner

+29% Turkish Lira

+37% Brazilian Real

+58% Argentine Peso

+62% Russian Ruble

+140% Ukranian Hryvnia

 

I was checking price of watches in an argentinean trade website and price are still higher than on the bay.

 

It's an experiment by aliens. They combined their DNA with ape DNA millenia ago to see if logic & intelligence can transcend violent animal instinct. Geez, don't you watch tv and the movies? There's even a religion about it! (well, sort of )

There's a saying attributed to Steven Tyler of Aerosmith:

Except the same old behavior is compounding the problem.

 

Don't know what your theory is about, but you've got the above numbers only because those currencies have declined against the US$ more than gold has against US$, each for their own reason.

 

Compare trends in wheat, maize and rice to get the whole picture. These are the three commodities that the worlds population run on. oil, gold and dollars are just big boy of town headline stuff.
The whole issue with Egypt was the drought in U.S and less supply by Russia of wheat. Running out of Bread was the whole start of everything that happened there.
http://www.haaretz.com/news/middle-east/.premium-1.535309

 

My "theory"? It's not a theory – I was stating facts. If one bought gold in the currencies that I listed and held it for two years, those would be the actual percentage gains. What you are suggesting is that one would have also done well over that time frame by exchanging those currencies for Dollars. That is true, but irrelevant, and you are making the very same mistake that many make by viewing gold only through a USD prism.

It is true that gold is widely priced in Dollars as that is how the major paper exchanges (e.g. COMEX) operate, but I can assure you that when you purchase physical gold in other countries, it is priced in local currencies.

Gold will trade at much higher prices in every major currency, as they are all being badly degraded, and most are overvalued. This is especially true of the USD.

 

Did you read the OP's link? The whole country of Venezuela practices your "facts" right there...

 

You are continuing to misunderstand both currency and PM markets.

The Bolivar was pegged to the USD in 2013, so it has appreciated vs gold during that period. My original post illustrated how gold has proven to be an important store of value relative to certain currencies over a two-year period. I never suggested that every currency had declined vs gold during that period.

The country of Venezuela is not "practicing" my facts. The Government has been screwing things up through a wide variety of idiotic policies, leading to their current crises, and if they can weather the storm without selling a substantial amount of their gold holdings, they will end up much better off than many countries.

Gold is good collateral, which is why Central Banks around the world all hold substantial amounts, and the smarter ones (e.g. China and Russia) are rapidly adding to their reserves.

If you believe that it is possible to print one's way to prosperity, then by all means, keep your savings in Dollars (or Euros, Yen, etc.). And if you believe that one or more of the facts that I have stated are incorrect, feel free to attempt to offer evidence to the contrary.

 

always diversify.
any balanced portfolio should own
a minimum of 5% precious metals

 

Always see Bear Gold(or any other market) stories at the bottoms.
And Bull stories at market tops. Remember "Peak" oil. That we
only had enough to last until 2025. That it was going to $300 a barrel.
Anyone that wants to get bearish on gold in a 40% re-tracement
from the highs(in dollars) is nuts. Buy when the blood is running,
sell when the cup is frothing over.