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ECON Gold in Venvezuela has gone up 3,100,000% since January
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  1. #1
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    Gold in Venvezuela has gone up 3,100,000% since January

    Gold In Venezuela Has Gone Up 3,100,000% Since January (And The Price Doubles Every 18 Days)

    Fair disclosure-- this comes from Silver Doctors site which sells precious metals.

    https://www.silverdoctors.com/gold/g...every-18-days/

    In extreme cases of inflation and hyperinflation such as the case of Venezuela right now, gold can literally help save lives. Here’s why…
    by Frank Holmes of US Funds

    Last month in Venezuela’s capital city of Caracas, a cup of coffee would have set you back 2 million bolivars. That’s up from only 2,300 bolivars 12 months ago, meaning the price of a cup of joe has jumped nearly 87,000 percent, according to Bloomberg’s Café Con Leche Index. And you thought Starbucks was expensive.

    But that was July. Prices in Venezuela are doubling roughly every 18 days. The International Monetary Fund (IMF) now projects inflation to hit an astronomical 1 million percent by the end of this year. This puts the beleaguered Latin American country on the same slippery path as Zimbabwe a decade ago and Germany in the 1920s, when a wheelbarrow full of marks was barely enough to get you a loaf of bread.

    Venezuela’s socialist president Nicolas Maduro—who only this past weekend survived an assassination attempt involving several explosive-laden drones—announced recently that the country plans to rein in hyperinflation by lopping off five zeroes from its currency. If you recall, Zimbabwe similarly tried to combat soaring prices of its own by issuing a cartoonish $100 trillion banknote—which in 2009 was still not enough to buy a bus ticket in the capital of Harare.
    Without structural governmental reforms, a new bolivar is just as unlikely to steady Venezuela’s skyrocketing inflation or remedy its crumbling economy.

    Gold Could Save Your Life

    So where does this put gold? At some point, hyperinflation gets so ludicrously out of control that discussing exchange rates becomes pointless. But as of July 30, an ounce of the yellow metal would have gone for 211 million bolivars—an increase of more than 3.1 million percent from just the beginning of the year.

    My point in bringing this up is to reinforce the importance of gold’s Fear Trade, which says that demand for the yellow metal rises when inflation threatens to destroy a nation’s currency—as it’s doing right now in Venezuela. A Venezuelan family that had the prudence to store some of its wealth in gold would be in a much better position today to survive or escape President Maduro’s corrupt, far-left regime.

    In extreme cases like this, gold could literally help save lives.
    Such was the case following the fall of Saigon in 1975. If not for gold, many South Vietnamese families might not have managed to escape the country. A seat on one of the thousands of fleeing boats reportedly went for eight or 10 taels of gold per adult, four or five taels per child. (A tael is slightly more than an ounce.) Gold was their passport. Thanks to the precious metal, tens of thousands of Vietnamese “boat people,” as they’re now known, were able to start new lives in the U.S., Canada, Australia and other developed countries.
    Venezuela’s Once Prosperous Economy Destroyed by Corruption and Mismanagement.

    But back to Venezuela. Amid the corruption and mismanagement, the only thing helping the country pay its bills right now is gold. Two years ago, it had the world’s 16th largest gold reserves. Today it stands at number 26 as it’s sold off more than half its holdings since 2010. While countries such as China and Russia continue to add to their holdings, Venezuela has been the world’s largest seller of gold for the past two years.

    It’s hard to remember now, but as recently as 2001, Venezuela was the most prosperous country in all of South America. Like Zimbabwe, the OPEC nation is rich in natural resources, home to the world’s largest oil reserves and what’s believed to be the fourth largest gold mine. Oil exports account for virtually all of its export revenue.

    In 2016, Venezuela was the third largest exporter of crude to the U.S. following Canada and Saudi Arabia, but with output in freefall, this is changing rapidly. For the first time ever in February, Colombia sold more crude oil to the U.S. than its eastern neighbor did. And in June, Venezuela’s state-owned oil and gas company, Petróleos de Venezuela (PDVSA), informed at least eight foreign clients that it would be unable to meet supply commitments.

    According to GlobalData, production is on track to fall to only 1 million barrels per day by 2019, down from 3 million a day in 2011, meaning the petrostate might soon have nothing left to deliver.
    President Maduro now has the ignoble distinction of reigning over an economic recession that rivals the very worst in modern history. Last month, the IMF forecast that the country’s real gross domestic product (GDP) would fall 18 percent this year—the third straight year of double-digit declines.

    A mass exodus of young, working-age Venezuelans, many of them college-educated, is unlikely to help. Estimates of the number of people who have fled the country in the past two years alone range from 1.7 million to as high as 4 million.
    Their escape is no easy task, as numerous international airlines, citing rampant crime and a lack of electricity, have canceled all flights in and out of Caracas.

    The only U.S. carrier still operating in the country is American Airlines, which offers a single daily flight from the nation’s capital to Miami. Just two years ago, there were as many as 40 nonstop American flights, not to mention those of rival carriers, between the two cities—a sign of just how dramatic and swift Maduro’s mismanagement has been in crippling Venezuela’s once-robust economy.

    The Diversification Benefits of Gold

    The gold bears were on top last week, with the metal trading as low as $1,205 on Thursday. That’s the closest it’s come to dipping below $1,200 since February 2017. Friday’s lower-than-expected jobs report gave gold a modest boost, but it wasn’t enough to prevent a fourth straight week of price declines.

    In times like this, it’s important to remember that, according to gold’s DNA of volatility, it’s a non-event for the metal to close up or down 1 percent at the end of each session, 2 percent for the 10-day trading period. And guess what? The S&P 500 Index has the same level of volatility.

    Ten days ago, gold was trading just under $1,230 an ounce, or 0.6 percent more than today. The math is sound.

    It’s also worth remembering that gold has traditionally had a low to negative correlation with other assets such as equities. This is why many investors over the years have used it as a portfolio diversifier.

    Case in point: On June 26, Facebook suffered its worst single-day decline since the company went public in 2012. Its stock plunged 19 percent, erasing some $120 billion in market capitalization—the most ever in history for a single trading session.
    Gold, meanwhile, held relatively steady, slipping only 0.62 percent.

    End
    Gold is the Money of Kings
    Silver is the Money of Gentlemen
    Barter is the money of Peasants
    But Debt is the money of Slaves

  2. #2
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    Ohhhhh, you said the G Word!

    Got talked about in Greg Hunter's Weekly News Wrapup that I posted earlier today too. Along with lotso other stuff.

    And here's the linkie - http://www.timebomb2000.com/vb/showt...reg-Hunter-WNW
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  3. #3
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    Quote Originally Posted by Dozdoats View Post
    Ohhhhh, you said the G Word!

    Got talked about in Greg Hunter's Weekly News Wrapup that I posted earlier today too. Along with lotso other stuff.

    And here's the linkie - http://www.timebomb2000.com/vb/showt...reg-Hunter-WNW
    But I did disclaimer that it comes from a Precious metal site
    Gold is the Money of Kings
    Silver is the Money of Gentlemen
    Barter is the money of Peasants
    But Debt is the money of Slaves

  4. #4
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    It's still the G Word, and anathema to many here.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  5. #5
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    I have neither the desire nor need for gold.

  6. #6
    I made a couple of trips into Zimbabwe at the very beginning of their hyperinflation. If one had US Dollars, South African Rand or gold, you could make out like a bandit. Most people involved in the currency black market were looking at various monetary and currency swap type deals. I wasn't involved in that to any great degree, so my aspirations were more humble. What you could easily do is swap Rand, Dollars and gold for Zim Dollars at two or three times (or more) the official exchange rate. What this allowed you to do is buy all manner of consumer goods, ranging from fine clothing to art for pennies on the dollar. Later, after I'd returned to the US, the exchange rates became much, much more extreme.

    Any of you near the Mexican or Canadian borders should keep an eye out for similar currency disparities. In the near(er) term, I don't expect the disparities to be as extreme as the Zimbabwe example, but you could still wind up making some good deals if you follow fluctuations in the exchange rates.

    Best regards
    Doc

  7. #7
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    Quote Originally Posted by Dozdoats View Post
    It's still the G Word, and anathema to many here.
    makes me happy to educate the few who are willing to listen.

    Burying our heads in the sand, does no one any good.
    Gold is the Money of Kings
    Silver is the Money of Gentlemen
    Barter is the money of Peasants
    But Debt is the money of Slaves

  8. #8
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    But....that could never happen here this is America, we have the Fed and they would never let that happen as we are immune to the laws of economics and finance.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  9. #9
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    Gold In Venezuela Has Gone Up 3,100,000% Since January
    So has toilet paper...

    Next...
    ...Rubbin' is Racin'......

  10. #10
    Gold is still the same. The currency has turned to toilet paper.
    In Honor of T/S R.L. Hare (Chief Sly)and the members of 322 BS

  11. #11
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    Quote Originally Posted by Racing22 View Post
    So has toilet paper...

    Next...

    Which means.....gold has preserved it's purchasing power against the Bolivar. Those that have metal can still afford the basics that the others with only Bolivar's can't afford. The purpose of the metals is not to 'make money' nor is it an investment. It is real and honest money that preserves it's purchasing power over time. That is why ones savings should be in gold and secondarily in silver as they preserve purchasing power over time and whereas every other asset is in a bubble both AU/AG are depressed. Back in 2001 someone that had a millions Bolivar's was rich. Today that million won't buy you a cup of coffee. Our future if the Fed keeps printing dollars out of thin air.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  12. #12
    Quote Originally Posted by Hfcomms View Post
    But....that could never happen here this is America, we have the Fed and they would never let that happen as we are immune to the laws of economics and finance.
    Yeah!

    The Federal reserve Banksters have our best interest in their black greedy hearts.

    We just gotta trust them, the men behind the Curtin are all powerful.

  13. #13
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    Quote Originally Posted by Hfcomms View Post
    Which means.....gold has preserved it's purchasing power against the Bolivar. Those that have metal can still afford the basics that the others with only Bolivar's can't afford. The purpose of the metals is not to 'make money' nor is it an investment. It is real and honest money that preserves it's purchasing power over time. That is why ones savings should be in gold and secondarily in silver as they preserve purchasing power over time and whereas every other asset is in a bubble both AU/AG are depressed. Back in 2001 someone that had a millions Bolivar's was rich. Today that million won't buy you a cup of coffee. Our future if the Fed keeps printing dollars out of thin air.
    Very true for one that has savings. For day to day, paycheck to paycheck life it is of little value. If you have enough savings in gold it may last a while before running out, but it will run out unless you are very rich.

    If I had enough extra income to worry about how to save it, I would put some in gold, some in silver, some in land and some in commodities (Food and ammo). I have only been able to invest in commodities so far.

  14. #14
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    Pretty much agree. Gold is for savings/insurance. If you don't have any savings then you can't buy gold. For those living on the edge purchasing metal wouldn't be first on my list. Laying in a supply of non-perishable food, water, shelter and other life sustaining items is primary. Even for those living paycheck to paycheck almost everyone can afford an extra bag of rice per week or maybe some mac/cheese boxes or noodles. Build up a supply of things that quickly run out during a crisis and don't forget the toilet paper either.....
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  15. #15
    Quote Originally Posted by okie-carbine View Post
    I have neither the desire nor need for gold.
    That's what everyone I know who lack the means to acquire it says too.
    >>>>> On the Internet you can be anything you want. It's so strange that many people choose to be stupid. <<<<<

  16. #16
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    Sign posted in public toilets in Zimbabwe after their recent hyperinflation ...

    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  17. #17
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    Quote Originally Posted by Dozdoats View Post
    Sign posted in public toilets in Zimbabwe after their recent hyperinflation ...

    That's what their Zim dollars are worth.... alternative toilet paper.
    Gold is the Money of Kings
    Silver is the Money of Gentlemen
    Barter is the money of Peasants
    But Debt is the money of Slaves

  18. #18
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    That sign basically says that TP was more valuable than money …
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  19. #19
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    Quote Originally Posted by Racing22 View Post
    So has toilet paper...

    Next...
    Yep. EXACTLY!
    And both would be barter commodities.

    Seriously, if you lost your job tomorrow and couldn't live comfortably for at least a year, you might want to re-evaluate your priorities.
    Do you have an emergency fund?
    Is your home and car paid off?
    Do you owe money to anyone for anything? You need to be debt free.
    Do you have enough money to pay all your taxes and bills and expenses for 6 months to a year?
    Do you have your emergency preps and food in order?
    Now go ahead and look at a stable source of wealth preservation, ie PMs, foreign accounts, property etc.

    Seriously folks, if you want to have some PM coins and it makes your feel good, then fine. BUT don't end up losing your home because it wasn't paid for and you got sick or you lost your job and didn't have an emergency fund.

    Same thing could happen with a car if yours is an old unreliable piece of crap and you don't have the money to make a major repair.
    When the transportation goes, it has repercussions for many areas of your life.

    Get the basics in order before you start getting serious about PMs or other non essentials.

    Once the basics are in order feel free to pursue your own ideas about which store of wealth is best for you. Keeping true to your own beliefs in that area will do more than anything else to help you sleep well at night.
    "I never saw a wild thing sorry for itself. A small bird will drop frozen dead from a bough without ever having felt sorry for itself." -DH Lawrence

  20. #20
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    Quote Originally Posted by OldCraftsman View Post
    That's what everyone I know who lack the means to acquire it says too.
    There's a joke about a buyer coming into a coin shop and asking about the price of silver. Shop owner gives his price and the buyer protests that's much higher than the shop down the street. Shop owner tells him to go buy his silver down the street, then. Buyer protests again, saying the shop down the street doesn't have any silver left. Shop owner smirks and says that his prices are a lot lower, too, when he's completely out of stock.

  21. #21
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    I don't know if this statement is still the case regarding the revaluation of the currency, but it reinforces the point that Venezuela's hyperinflation is so rapid the government simply can't keep up:

    "This change in currency was originally intended to take effect on 4 June 2018, at the rate of Bs.S. 1 = Bs.F. 1,000, this cutting three zeroes off, but was postponed by the President to 20 August 2018, with redenomination being changed to Bs.S. 1 = Bs.F. 100,000 (cutting five zeroes off)." (https://en.wikipedia.org/wiki/Venezuelan_bolívar)

  22. #22
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    Quote Originally Posted by TerryK View Post

    Seriously, if you lost your job tomorrow and couldn't live comfortably for at least a year, you might want to re-evaluate your priorities.
    Do you have an emergency fund?
    Is your home and car paid off?
    Do you owe money to anyone for anything? You need to be debt free.
    Do you have enough money to pay all your taxes and bills and expenses for 6 months to a year?
    That's it in a nutshell.

    But we have a poster in this thread that thinks Gold is going to save them, when all they have is $1,000 in their emergency fund. They are seriously misinformed...

    Seriously folks, if you want to have some PM coins and it makes your feel good, then fine.
    That appears to be their focus. I believe they just like to have shiny paperweights? I wonder how it feels to use Gold in place of toilet paper?
    ...Rubbin' is Racin'......

  23. #23
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    Perhaps a better way to look at it is the price of gold has not risen - but the value of Venezuela's Bolivar has decreased to 0.00000000032 of its former value.

    Put blame where it belongs.

    Gotta love Socialism...

    Dobbin
    I hinnire propter hoc ecce ego

  24. #24
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    As long as the disclaimer is in the post, talk about PMs all you want.

  25. #25
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    Quote Originally Posted by Racing22 View Post
    That's it in a nutshell.

    But we have a poster in this thread that thinks Gold is going to save them, when all they have is $1,000 in their emergency fund. They are seriously misinformed...


    That appears to be their focus. I believe they just like to have shiny paperweights? I wonder how it feels to use Gold in place of toilet paper?
    Whatever makes you feel good and let's you sleep at night. And BTW I have both gold and toilet paper. As far as being 'seriously misinformed' I can go for several years with no warning and no outside help in the way of food, water, supplies, fuel or toilet paper. I can also turn my gold into FRN's in 24 hours if I find the need to do so and I have been preparing for the days we are entering into for 25 years now. You??
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  26. #26
    Hfcomms……….you're spot on...…..our income has drastically slimmed...not sure what to in long term......but until "IT" happens we just soldier on and know at least some $ is salvageable...….
    Sapphire

    myopically challenged

  27. #27
    Quote Originally Posted by Racing22 View Post
    That's it in a nutshell.

    But we have a poster in this thread that thinks Gold is going to save them, when all they have is $1,000 in their emergency fund. They are seriously misinformed...


    That appears to be their focus. I believe they just like to have shiny paperweights? I wonder how it feels to use Gold in place of toilet paper?
    We all gamble. Funny thing though..The Good Lord provides for those who work hard and live good. PMs are good. And rather they save me and mine or not it don't matter, already saved,

    But yes a $1000 In face GOLD could save a lot of hard times for a poor family.

  28. #28
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    Quote Originally Posted by Dobbin View Post
    Perhaps a better way to look at it is the price of gold has not risen -
    Actually, just the opposite in the last 6+ years... But, hey.... just keep stacking.... just because....
    Attached Images
    ...Rubbin' is Racin'......

  29. #29
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    Quote Originally Posted by SAPPHIRE View Post
    Hfcomms……….you're spot on...…..our income has drastically slimmed...not sure what to in long term......but until "IT" happens we just soldier on and know at least some $ is salvageable...….

    That's it for me. The gold is my savings account and not a bank book or money in the safe. We still use cash/currency but it is debt based and constantly being inflated away. It's prudent to have a month or two of cash on hand if you can but that isn't savings to me really. All one has to do is compare what $20 buys today as compared to 10 years ago to see where it is going. A $20 gold coin today has virtually the same purchasing power as it did 50 or 100 years ago. Sure, it doesn't pay interest and just 'sits there' but the bank doesn't pay interest either.

    Get the life sustaining basics squared away and if anything is left over convert that to hard assets that retain value over time.
    I like the metals but for someone else it might be real estate, tools, barterable skills, etc. Whatever makes sense for you and your particular situation. One thing I know is that the 1K of cash I keep on hand won't go as far as it did five years ago or even one ago so it's not a valid store of value or savings imo.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  30. #30
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    Quote Originally Posted by Hfcomms View Post
    All one has to do is compare what $20 buys today as compared to 10 years ago to see where it is going.
    Hmmmm, that's interesting. My $20 from 10 years ago is buying a heck of a lot more than it did back in 2008. Why is that?
    Attached Images
    ...Rubbin' is Racin'......

  31. #31
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    Quote Originally Posted by Hfcomms View Post
    All one has to do is compare what $20 buys today as compared to 10 years ago to see where it is going.
    OK, so let's see what that $20 buys at today's dollars:


    Food priced at $20 in 2008 = $23.62 in 2018

    According to the U.S. Bureau of Labor Statistics, prices for food were 18.12% higher in 2018 versus 2008 (a $3.62 difference in value).

    Between 2008 and 2018: Food experienced an average inflation rate of 1.68% per year. In other words, food costing $20 in the year 2008 would cost $23.62 in 2018 for an equivalent purchase.

    http://www.in2013dollars.com/Food/pr...2018?amount=20

    So, ten years later, it costs $3.62 more to buy the same amount of groceries.

    One thing I know is that the 1K of cash I keep on hand won't go as far as it did five years ago or even one ago so it's not a valid store of value or savings imo.
    So, what did MY $20 invested (my chart above) do over the last 10 years?

    $20 invested in the market in 2008 would be worth $46.49 in 2018, a 125% growth rate. So I could buy twice the amount of groceries today.

    Maybe it's time to rethink investment strategies......
    ...Rubbin' is Racin'......

  32. #32
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    Nope...go ahead and 'invest' in the top of a bubble looking for a pin in a room full of needles. I'll stick to what I know. Enjoy your paper and electronic digits while you can. Learn from history my friend.
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  33. #33
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    Quote Originally Posted by Racing22 View Post
    OK, so let's see what that $20 buys at today's dollars:


    Food priced at $20 in 2008 = $23.62 in 2018

    According to the U.S. Bureau of Labor Statistics, prices for food were 18.12% higher in 2018 versus 2008 (a $3.62 difference in value).

    Between 2008 and 2018: Food experienced an average inflation rate of 1.68% per year. In other words, food costing $20 in the year 2008 would cost $23.62 in 2018 for an equivalent purchase.

    http://www.in2013dollars.com/Food/pr...2018?amount=20

    So, ten years later, it costs $3.62 more to buy the same amount of groceries.



    So, what did MY $20 invested (my chart above) do over the last 10 years?

    $20 invested in the market in 2008 would be worth $46.49 in 2018, a 125% growth rate. So I could buy twice the amount of groceries today.

    Maybe it's time to rethink investment strategies......
    Gold is the Money of Kings
    Silver is the Money of Gentlemen
    Barter is the money of Peasants
    But Debt is the money of Slaves

  34. #34
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    What was it Ben Franklin said about experience keeping a dear school?
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  35. #35
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    DISCLAIMER - these people sell newsletters promoting PM ownership and investment in mining shares and other resource companies.

    PERSONAL COMMENT - In years gone by I thought it was possible to turn things around in this nation, to avoid collapse and total destruction by a return to sanity. I am no longer so deluded.

    At this point, IMO, your most valuable precious metal is LEAD and the ability and skill to deliver it rapidly on multiple targets.

    YMMV of course...

    Graphics at the link if you want to see them.
    ============================

    https://internationalman.com/article...-civilization/

    How Inflation Destroys Civilization
    by Nick Giambruno

    Yesterday I told you about the unstoppable trend towards more socialism in the US.
    I think inflation is the primary factor driving this trend. Americans feel squeezed because the cost of rent, medical insurance, and tuition, as well as other basic living expenses, is rising much faster than their wages.

    This creates very real problems for ordinary people. In response, more and more turn to Santa Claus politicians that promise supposed freebies, like a $15 minimum wage or universal basic income.

    Why the Cost of Living Has Exploded
    This is all a predictable consequence of the US abandoning sound money.
    Recommended Link

    The above ad will link you to Nick’s Crisis Investing newsletter. Crises happen. We can try to stop them, but in the meantime, they provide superb investment opportunities. And your investments in time of crises often help resolve the crises in ways that are ethical and appropriate (as opposed to the foolhardy government interventions usually employed).

    By every measure—including stagnating wages and rising costs—things have been going downhill for the American middle class since the early 1970s.

    August 15, 1971, to be exact. This is the date President Nixon killed the last remnants of the gold standard.

    Since then, the dollar has been a pure fiat currency. This allows the Fed to print as many dollars as it pleases. And—without the discipline imposed by some form of a gold standard—it does precisely that. The US money supply has exploded 2,106% higher since 1971.

    The rejection of sound money is the primary reason inflation has eaten up wage growth since the early 1970s—and the primary reason the cost of living has exploded.

    The next chart illustrates this dynamic. It measures US hourly wages priced in gold grams (the number of gold grams the average person’s hourly income could buy).
    Measured in gold, wages in the US have fallen over 84% since 1971. That’s an astounding drop.

    The next chart measures the federal minimum wage in terms of gold grams. Priced in gold, the minimum wage has fallen 87% since 1968.

    Note that the federal minimum wage was $1.60 in 1968. It’s $7.25 today, or 353% higher in dollar terms.

    But that $7.25 buys 87% less than $1.60 did back in 1968. That’s the story you won’t hear from the mainstream press.

    This is why millennials and millions of others are gravitating toward socialism.
    They feel the economic pain of inflation every day. They know it’s becoming harder and harder to maintain a middle-class lifestyle. They just don’t understand why. So, they succumb to the siren’s call of freebies.

    Perverse as it is, the policies demanded by people suffering from inflation create even more inflation.

    Inflation has a way of perpetuating itself. The more inflation reduces living standards, the more people push for programs that create even more inflation. This includes things like universal basic income and a higher minimum wage… which in turn creates a cycle of inflation.

    It’s only a matter of time before “fight for $15,” the rallying cry for a $15 minimum wage, becomes “fight for $20.” Then it’s “fight for $50,” “fight for $100,” and so forth.

    What people should really fight for is a return to sound money. It’s the only way to end this insidious cycle. But that’s not going to happen.
    Recommended Link

    Inflation follows a clear pattern of corruption:
    In a fiat currency system, the government will invariably print an ever-increasing amount of currency.

    This makes prices and the cost of living rise faster than wages.

    The average person feels the pain but doesn’t understand what’s happening.
    More people support politicians who promise freebies.

    In order to pay for the “freebies,” the government prints more money.
    This creates even more inflation, and the cycle repeats.

    Most of America Lives Off the Government
    At this point, we have to ask ourselves whether the political situation in the US will improve. Unfortunately, the data points to a troubling, but inevitable, answer… “no.”
    The reason is simple: a growing majority of US voters are addicted to the heroin of government welfare.

    An estimated 47% or so of Americans already receive some form of government benefit. But I don’t think that accurately reflects the situation. At least, not when you consider all the government employees, along with those in the nominally private sector who feed off the warfare state. This includes defense and other government contractors who win huge, no-bid contracts.

    People involved in the military-industrial complex live off government slops as much or more than those who collect food stamps and other traditional forms of welfare. Yet they aren’t counted in the statistics. Any honest account of who depends on the government needs to include them.

    When you count everyone who lives off of political dollars, we’re already well north of 50% of the US population.

    In other words, the US has already crossed the Rubicon. There’s no going back.
    The growing majority of people who depend on the government guarantee that socialist policies will continue and likely accelerate. It’s why Bernie Sanders and his ilk are growing in popularity.

    I think this trend is unstoppable. There’s no way a meaningful number of these people would ever vote to stop their government benefits. No one voluntarily breaks his own rice bowl.

    The notion that a significant number of people living off of government largesse will come around to a libertarian way of thinking is a pipe dream.

    Even the Libertarian Party has become a crude parody of a real libertarian, free market, voluntaryist philosophy.

    There is simply no hope for positive change from the political system. That means one thing is certain: an ever-increasing amount of money printing to pay for all these government programs.

    Recommended Link

    How to Protect Your Wealth
    Unfortunately, most people have no idea how bad things can get when socialist government policies spin completely out of control, let alone how to prepare.
    Owning some physical gold is step one. This is something everyone should do.
    Gold is the ultimate form of wealth insurance. It’s preserved wealth through every kind of crisis imaginable. It will preserve wealth during the next crisis, too.
    The price of gold tends to be inversely related to the value of the dollar.

    In addition to physical gold, you’ll also want leveraged upside to grow your wealth. For that, I suggest looking to companies that produce precious metals.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  36. #36


    So funny to read some stuff.

    Let's talk common sense. For a start over 20% of those who can work are out of employment in reality. Then a lot who are employed are only in part-time employment.

    What is the main reason they are out of work? Well, the main cause is robotics and similar used in manufacture. Will, going onto a gold standard fix this? No.

    What is a gold standard? It comes down to a promise to exchange the fake notes in hand for gold at a set price. That is okay but what if the set price is fixed in the U.S. but higher in some other countries. Problem huh?

    Now it would seem that most want the unemployed dead and those working in low-end jobs to stay low paid. Why? Simple so that they can enjoy a higher standard of living at the expense of the rest.

    In China. many factory owners pay next to nothing in wages to staff but rake in millions for themselves. There is no dole for those unemployed and no free medical. So most of you want to work and live in a country like China. This will happen soon enough without wishing for it.

  37. #37
    Quote Originally Posted by Thunderbird View Post
    Gold is still the same. The currency has turned to toilet paper.
    This is the first that I have notice this thread. But you made my point. The title bugged me to.
    But not likely to die free

  38. #38
    Join Date
    Jul 2005
    Location
    Happy on the mountain
    Posts
    59,678
    In the FUSA in 1930, a US dollar bought 1/20th of an ounce of gold.

    Today, A FRN$ will buy 1/1200th of an ounce - but everyone thinks we are better off.

    THAT is what's funny.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  39. #39
    Join Date
    Dec 2007
    Location
    LaLa Land
    Posts
    6,411
    Quote Originally Posted by Dozdoats View Post
    In the FUSA in 1930, a US dollar bought 1/20th of an ounce of gold.

    Today, A FRN$ will buy 1/1200th of an ounce - but everyone thinks we are better off.

    THAT is what's funny.
    Exactly...but most people can't see that.
    Gold is the Money of Kings
    Silver is the Money of Gentlemen
    Barter is the money of Peasants
    But Debt is the money of Slaves

  40. #40

    When I was a kid Argentina was a rich country. Enjoy the moment.



    Poor Argentine women working in recycling at home







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