Protection from economic recession

[johndunham]

Does it make sense in your opinion to buy gold at this point it time?

I'm not him. But no, it does not make sense to buy gold near its ATH.

edit: However, most of the world's "investors" will buy it now. And sell later for a loss.

 

[369]

I'm not him. But no, it does not make sense to buy gold near its ATH.

He has no clue what he is talking about else he wouldn't compare gold from 1980 with today.
Gold has totaly diffrent function.
What happened in 1970 is the oil crisis which made gold rise from $270 to $1900 till 1980.
Then USA implemented 20% interest which took gold which was at that time a pure hedge its function and price started going back down.

Totaly diffrent situations which majority here doesn't understand

 

[johndunham]

He has no clue what he is talking about else he wouldn't compare gold from 1980 with today.
Gold has totaly diffrent function.
What happened in 1970 is the oil crisis which made gold rise from $270 to $1900 till 1980.
Then USA implemented 20% interest which took gold which was at that time a pure hedge its function and price started going back down.

Totaly diffrent situations which majority here doesn't understand

Not sure what you're getting at, but that doesn't make his remarks false. If you would've bought in 1980, you would've lost value if you would've hold until 2000. That's correct. Your statements are correct too though.

 

[freedomseeker]

buy crypto exchange for physical in singapore in a deposit box.

Please expound on this...

 

[bountymounty]

See India etc.

comparing India with EU may be going over the line

Much of the propaganda people around here may believe a lot of bad things about the future, I'm not one of them!

 

[Martin Everson]

If you hold something in cash as suggested above, how will you get that cash later on into the financial system again without lots of questions and documents to be provided?

When I said cash I didn't mean "physical" cash....lol. Those days are coming to an end for the physical stuff.

However if you do hold the physical stuff you can always get it back into the system via your local central bank in most cases i.e Bank of England. Even if the bank note goes out of circulation and is replaced with a CBDC...lol...it will still likely be exchangeable for an unlimited period of time. As is the case for some national currency conversion to the euro for example.

https://www.ecb.europa.eu/euro/exchange/html/index.en.html

P.S Just keep all documents related to how you obtained the physical stuff.

 

[369]

When I said cash I didn't mean "physical" cash....lol. Those days are coming to an end for the physical stuff.

However if you do hold the physical stuff you can always get it back into the system via your local central bank in most cases i.e Bank of England. Even if the bank note goes out of circulation and is replaced with a CBDC...lol...it will still likely be exchangeable for an unlimited period of time. As is the case for some national currency conversion to the euro for example.

https://www.ecb.europa.eu/euro/exchange/html/index.en.html

P.S Just keep all documents related to how you obtained the physical stuff.

Normaly i would agree here BUT and here comes the diffrence in my opinion where GBP,DM,DK,ESP etc were money by law so isn't EURO .
EURO by the lawly defenition of money doesn't represent money.It is being in the public accepted as money but by law it isnt.

 

[clemens]

USDEUR

you mean USD & EUR or is this a cryptocoin ?

 

[johndunham]

Normaly i would agree here BUT and here comes the diffrence in my opinion where GBP,DM,DK,ESP etc were money by law so isn't EURO .
EURO by the lawly defenition of money doesn't represent money.It is being in the public accepted as money but by law it isnt.

That.. That just doesn't make sense mate. You can't expect us to understand you like that.

 

[369]

That.. That just doesn't make sense mate. You can't expect us to understand you like that.

What do you dont understand ?
There is a defenition by law what money is and what points it need to fullfill be be seen as money.Euro doesn't fit that defenition and if you look closer you know why
One question you could answer for example based on euro notes/bills who is the publisher of that money ?
Who's signature is on that bill/note ?

 

[boomy]

What do you dont understand ?
There is a defenition by law what money is and what points it need to fullfill be be seen as money.Euro doesn't fit that defenition and if you look closer you know why
One question you could answer for example based on euro notes/bills who is the publisher of that money ?
Who's signature is on that bill/note ?

where did you read that, now I'm curious ?

 

[void]

you mean USD & EUR or is this a cryptocoin ?

I meant currency pair USDEUR - as you can see EUR is constantly weakening and holding EUR is far from holding USD in terms of security and preservation of value which is of course no big surprise

 

[Martin Everson]

Normaly i would agree here BUT and here comes the diffrence in my opinion where GBP,DM,DK,ESP etc were money by law so isn't EURO .
EURO by the lawly defenition of money doesn't represent money.It is being in the public accepted as money but by law it isnt.

I have no idea what your talking about. Explain a bit more clearly please?

 

[jkl197]

USD at the moment is the strongest currency, in 10-15 years time who knows?
In the mean time how about diversifying a bit in CHF and SGD?

 

[Golden Fleece]

USD at the moment is the strongest currency, in 10-15 years time who knows?
In the mean time how about diversifying a bit in CHF and SGD?

See the Dollar Milkshake Theory, which is a strong counterpoint to the narrative that the next currency crisis will result in a weaker USD. This theory posits that the opposite might be true.

 

[freedomseeker]

So let's say one was to diversify by opening a Singapore bank account and converting ones money to SGD. What are my options for investing? Do they have access to most world markets? If to say one wanted to invest in the usa stock market after a correction would the money have to be converted back into USD to invest? (ie paying for exchange rates twice going from CAD to SGD then to USD to invest?).

I guess what i am trying to understand is can someone invest in foreign markets with out converting again (and the associated fees) or simply take comfort in trying to Protect oneself in the case of a CAD or USD decline in value with SGD, making the conversion fee's worth it to get back in the USA or Canadian markets again after a reset?

Does that make sense?

 

[jkl197]

So let's say one was to diversify by opening a Singapore bank account and converting ones money to SGD. What are my options for investing? Do they have access to most world markets? If to say one wanted to invest in the usa stock market after a correction would the money have to be converted back into USD to invest? (ie paying for exchange rates twice going from CAD to SGD then to USD to invest?).

I guess what i am trying to understand is can someone invest in foreign markets with out converting again (and the associated fees) or simply take comfort in trying to Protect oneself in the case of a CAD or USD decline in value with SGD, making the conversion fee's worth it to get back in the USA or Canadian markets again after a reset?

Does that make sense?

As you high-lighted it is not a good idea to convert money twice, waste of time and money.
I meant holding SGD in two possible perspectives, either investing in local denominated securities (bonds, money market, savign accounts or similar) or simply keep some liquidity in SGD in agreement of what Martin Everson mentioned in a previous post: keep cash (liquidity, not really phisical cash...) in the view that in a not too far future there will be good investment opportunities to catch around the world.

About milkshake theory, interesting video, thank you, about the same of what I thought, USD getting stronger now (near term) before the next big systemic crisis. I will hold USD at least until I see EURUSD under parity (maybe 0.90? or 0.80?) then we'll see.
In 15 years or so RMB will be the new world reserve currency, but now I think is too early to invest heavily in China.

 

[Golden Fleece]

In 15 years or so RMB will be the new world reserve currency, but now I think is too early to invest heavily in China.

No one will ever let that happen. Ever. It will be either SDRs or gold (in some way, shape, or form).

Why would the world ever trust a totalitarian regime with the power of the world's reserve currency?

The world allowed, yes allowed, the dollar (during the Bretton Woods Conference, officially known as the United Nations Monetary and Financial Conference) because (1) the U.S. was the world's undisputed economic powerhouse and (2) the U.S. was a benign power that had just helped win a war against totalitarianism.

In fact, even back then Keynes proposed, during the Bretton Woods Conference, to found the new international monetary system on a world currency, called the Bancor. It was rejected in favor of a gold back U.S. dollar. So, even back then an SDR-type instrument was considered.

The same thing will happen this time: either a basket of the best currencies in an SDR -- or gold (in some way, shape, or form). There really are no other alternatives.

 

[Silvio]

No one will ever let that happen. Ever. It will be either SDRs or gold (in some way, shape, or form).

Why would the world ever trust a totalitarian regime with the power of the world's reserve currency?

The world allowed, yes allowed, the dollar (during the Bretton Woods Conference, officially known as the United Nations Monetary and Financial Conference) because (1) the U.S. was the world's undisputed economic powerhouse and (2) the U.S. was a benign power that had just helped win a war against totalitarianism.

In fact, even back then Keynes proposed, during the Bretton Woods Conference, to found the new international monetary system on a world currency, called the Bancor. It was rejected in favor of a gold back U.S. dollar. So, even back then an SDR-type instrument was considered.

The same thing will happen this time: either a basket of the best currencies in an SDR -- or gold (in some way, shape, or form). There really are no other alternatives.

100% agree.

Everybody here talks about the world shifting to RMB but 99% of the people writing this don't have a single yuan in their wallet and wouldn't dream in their worst nightmwares to exchange their entire wealth into RMB. People vote with their feet (and their wallets).

 

[jkl197]

I confirm, as you said, I dont have a single yuan in my wallet, as I wrote myself in my previous post: "now I think is too early to invest heavily in China."
I was just talking about a long long term trend that the war seems to push

https://www.bloomberg.com/news/arti...il-paid-for-in-yuan-to-start-flowing-to-china
https://www.bloomberg.com/news/arti...-to-206-billion-reserves-in-philosophy-change
For now I keep my exposure to USD and I am enjoying the USD getting stronger.