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Zoros, yes I agree with all that. Hard currency will absolutely be a thing of the past. If only because you can't tax cash under the mattress.
But Speedy is projecting that when you open your phone one day to check the balance of your account, it's just going to say £0 on the screen. As Notrader says, It's still fiat, if only digital. fiat is digital. It's been 1's and 0's since we dropped the gold standard. What I want to understand is how those who believe the fiat armaggedon is coming, see the practical application of that. What does everyday life look like when your entire net worth has been wiped out overnight and only the people with a gold coin under the pillow can buy food. It sounds to me like some dystopian sci-fi film where we're trading tins of pilchards for shotgun cartridges.
My personal belief (as I haven't pretended to hide) is that it is the very definition of too big to fail. It's not Lehmans. It's not Iceland. It's the economic infrastructure upon which the whole of global society is built. And I just don't understand what this future looks like once it's been zero valued. Again, I'm sure i'm coming across as facetious, but I'm not too proud. I've always been more than happy to learn from others.
Zoros - you may receive your income electronically, and you payments may be made digitally, but both are transacted within the purview of a Fiat currency - the GB Pound sterling. (Assuming you live in the UK)
Bunky, you're not missing anything. FIAT money will eventually disappear. Hard 'change' will be a thing of the past (which inherently has its own problems but that conversation is for another day), notes will gradually fade out and the new digital currency will take over. It's happening now...I haven't used notes or coins for months! My bank lives on the internet - no local branches. My cheques (what are they?) get photographed via my bank app and my account credited without leaving my home. I pay people and businesses via digital transactions.
My income is electronic. Where do I need notes and coins...post covid?
Meanwhile back at the ranch, the dollar will remain king for decades to come, the yuan and euro will continue to stay abreast of matters. The dollar is the currency in nearly every country in the world in some shape or form (primary or black market)....long may it continue because there is no other country I would want backing my finances other than the dollar.
Medium term, the US. China and Europe (including GB) will go 100% digital, certainly in my life time.
FIAT only remains king as long as this continues:
https://www.investopedia.com/modern-monetary-theory-mmt-4588060
When the banking world goes digital....the dollar advantage will disappear. Then there will be a global 'levelling up' the likes of which no-one has ever seen.
As for crypto............compare it to a dead man walking scenario in terms of currency. Investments, yes but certainly not mainstream day to day transactionable.
Z
Of course the price of gold will have a direct effect on our share price.
Stacking gold /diversifying could also be a sensible step.
However, a lot of Forecasts have gold rising 20 to 30% higher over the next 3 to 5 years, some say it may fall lower and some say they may go to 10K. The majority I've seen has been around the 30% mark.
In this case surely if you want more bang for your buck you should invest in Gold Junior Miners, specifically in our favourite one, especially as most here expect to see many multiples of todays share price.
You could stack your GGP shares and when you reap the returns surely that's the time to buy physical gold.
@speedy - thanks for the reply. But I meant more in practical terms. So Joe Bloggs has £50k in a pension, and £10k in the bank. He earns £30k a year as a retail worker. He wakes up one morning and GBP, EUR, USD, JPY and CNY/RMB have all been officially valued at zero. How does the rest of his week look in practical terms?
I guess what i'm asking is what do you see as the practical process here. The options are surely either;
1) total collapse. 95% of the nation are starving in the streets. All private sector employers go bust and and nobody bothers going to work in the state sector because they can only be paid in fun tokens.
2) There is a weaning off fiat currency onto a "new" currency. Whether that be crypto/digi, gold bullion, or livestock, there would surely have to be a conversion. At which point it's out of the frying pan and into the fire, no?
What am I missing?
If you dont like DXY you can always look at the trade weighted dollar on the FRED website
https://fred.stlouisfed.org/series/DTWEXBGS - Broad, Goods and Services
https://fred.stlouisfed.org/series/DTWEXAFEGS - advanced foreign economies
https://fred.stlouisfed.org/series/DTWEXEMEGS - Emerging Markets
Curreicneis will never go to zero. There's options ot arrest that - currency boards have worked well in some situations, although in a worldwide era of inflation it does beg the question of who to peg your currency too. Probably not Biden's dollar.
Hi Ollie. I say prior to the new year on the thought that the bullion bank shorts will clear their position, whilst being squeezed, before being forced to on 2nd Jan 2022. Although we are not yet producing, a re rate in the POG will see an increase in our SP. ATB Speedy
Hi Bunky. Most fiat currencies have already collapsed 98% against the purchasing power of gold since the $ came off the gold standard. The world will not stop spinning just because the central banks lose control and people stop trusting their respective currencies. Long before the final 2% (100% from here) disappears another form of exchange will exist and my money is on a digital coin, maybe gold backed. ATB Speedy
Wow as early as before new year? I was expecting mid 2022 at the earliest.
Speedy & JSP - Thank you gentlemen, I have now dipped my toe into Gold Britannias - long may they Rule!!
@Speedy
"Times are changing and along with all major currencies the coming inflation/hyperinflation will see them revert to their true value, ZERO"
You're suggesting that all major fiat currency will be valued at zero? What does the world look like to you at that point? As in, day to day life. What do you see happening to businesses, to the average citizen going to buy groceries, to the state pension being paid out? I'm genuinley curious.
disclaimer; I know this question sounds facetious, it's really not meant to be. It's just that whenever people predict the total collapse of fiat currency, it brings up interesting theories about what the world could look like.
Morning BlueToff. I have bought mine from Atkinsons in Sutton Coldfield. They seem to have the fairest price and the service is good. If you google them they are easy to find. I am not on commission but perhaps I should ask them for some. LOL Keep well
Hi Blue. Gold 1 oz Britannias are by far the best, easiest, tax free and most liquid way to gain exposure to the PMs market. Silver 1 oz Brits are equally as good but usually carry a high premium and will need to be purchased and stored in a bonded store (VAT on delivery). I suggest you shop around for the best deal and store them at place of purchase. Hope this helps. ATB Speedy
Thanks Speedy that all makes sense to me - personally can’t wait for Basel 111 as long as it is as onerous as it sounds - could then be a boom moment for the POG!!!
Speedymeadie. Same question as before - where and in what proportion would you now invest £50k Gold/Silver, Britannias/ other. Been talking to PureGold Co but still undecided. Your valued advice please.Cheers
Hi Red. In answer to your question. The USA $ has been the "go to" in bad times and some still see it as safe today. Times are changing and along with all major currencies the coming inflation/hyperinflation will see them revert to their true value, ZERO. The USA has had its day and is in decline due to stupid wars and living beyond its means, financing gov spending with a flood of debt that will never be repaid. Gold will do what it has done for 1000s of years and preserve spending power. The profit will be seen by those holding physical gold when the manipulation comes to an end. Will the implementation of Basel111 be the catalyst? i have no idea but it will certainly help. ATB Speedy
Hi Speedy - love reading your views on the $ vs POG and you normally clarify things at the first go. But this time can I question whether if as you say the $ is looking stronger only because all other currencies measured against it are in a worse position, then isn’t that all the Yanks need to do to curry stability to the $ i.e. just to be better/stronger than other currencies (the best of a bad bunch)? Could that ultimately work against the POG? Not trying to be awkward but just looking to get my thoughts straightened out - thanks!!
Totally agree , I'm all loaded up , so can't change much now . Not planning on cashing in anything for at least 5 years , by which time the picture should have changed somewhat I'm hoping .
I've got a couple of pharma shares that potentially could blow soon , and if they do , I'll appreciate this still being cheap .
If not , then just settle down for the long game .
Its gonna come good eventually , as is gold . Plus there's the offchance of getting an RNS out of the blue ref new drilling that could blow our socks off .
I'm no good at trading . Life a lot simpler if you just sit back .
Its my own fault for checking it too much .
Definitely will be one of my new years resolutions .
Hi All. No matter how hard the bullion banks try to drop the price the physical buying takes it straight back up again and blocking their retreat from the short side ($35 billion). What is interesting today is the USA $ index is rising and so is gold. HNW individuals around the globe are buying into physical gold for a safe haven and fewer into the $. I think the $ is looking stronger only because all the other currencies measured against it are in a worse position. My physical gold pot has taken quite a hit this year along with my GGP stock and all because of a bent market. No worries at all as all manipulated markets revert to fair value and i expect a reversal to the upside for both prior to the new year. ATB Speedy