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Thread: Gold as a replacement for large cash and bond savings

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  1. #1

    Default Gold as a replacement for large cash and bond savings

    I would like to propose that the people stop looking at gold as just another asset to have some exposure to for "diversity" (I commonly hear keeping 2-10%), and that rather, it become a replacement for your savings in cash and bonds. Of course, keep some of your regions common currency for near term expenses (say 3 months), however the faith that has been placed by supposed financial experts on cash (and related bonds) is misplaced, given it's proven and necessary nature is to keep falling in value over time as trillions more in fiat digits are created. Look to silver and platinum as areas to diversify ones assets in PM bullion. And if you can, even do business directly with financial transactions in gold bullion, to help cement the idea that gold is money -- the king of money -- natural money -- God's money.

    Gold is, has, and will be for the foreseeable the time tested solid core of money. Cash and bonds will just loose value, a fools savings. So now, instead of say 40% in stock, 40% in bonds, 10% in gold, 5% cash, 5% ____ - have 40% stock, 40% gold, 10% silver/platinum, 5% cash, 5% _____. One needs to stick to this plan even when gold is not on a bull run, as it is on the downs when gold is not favored that saving in it can really pay off.
    Last edited by motocat; 07-29-2020 at 11:37 AM.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  2. #2

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    Quote Originally Posted by motocat View Post
    I would like to propose that the people stop looking at gold as just another asset to have some exposure to for "diversity" (I commonly hear keeping 2-10%), and that rather, it become a replacement for your savings in cash and bonds. Of course, keep some of your regions common currency for near term expenses (say 3 months), however the faith that has been placed by supposed financial experts on cash (and related bonds) is misplaced, given it's proven and necessary nature is to keep falling in value over time as trillions more in fiat digits are created. Look to silver and platinum as areas to diversify ones assets in PM bullion. And if you can, even do business directly with financial transactions in gold bullion, to help cement the idea that gold is money -- the king of money -- natural money -- God's money.

    Gold is, has, and will be for the foreseeable the time tested solid core of money. Cash and bonds will just loose value, a fools savings. So now, instead of say 40% in stock, 40% in bonds, 10% in gold, 5% cash, 5% ____ - have 40% stock, 40% gold, 10% silver/platinum, 5% cash, 5% _____. One needs to stick to this plan even when gold is not on a bull run, as it is on the downs when gold is not favored that saving in it can really pay off.
    The cycle of FIAT > Gold-backed Fiat > Gold never ends. The money forms is just a faith and that can be transform to any states. If everyone are forced and finally kneel to sea shells, all use sea shells as money. Gold has not been a good choice for weak countries and defenceless people as all their Gold can be looted and robbed clean by physical force. Hacker can loot electronics bank and Barbarians can rob your Gold. The safest is fiat which has intrinsic values of zero and when all looted clean and faith drop to zero. Inverse the possessions from "credit" to "debt", the Billionaires are the one which have the most det and never need to pay back and even happy to be "robbed". Do you wish to rob another one "debt"?

    Money is a non physical idea and depends on faith. What is the scientific unit of faith? It is by the number of supporters who use and believe them like a religion.
    Last edited by SnakeEater; 07-29-2020 at 09:47 PM.
    He who knows nothing is closer to the truth than he whose mind is filled with falsehoods and errors. ~ Thomas Jefferson

  3. #3

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    Quote Originally Posted by SnakeEater View Post
    The cycle of FIAT > Gold-backed Fiat > Gold never ends. The money forms is just a faith and that can be transform to any states. If everyone are forced and finally kneel to sea shells, all use sea shells as money. Gold has not been a good choice for weak countries and defenceless people as all their Gold can be looted and robbed clean by physical force. Hacker can loot electronics bank and Barbarians can rob your Gold. The safest is fiat which has intrinsic values of zero and when all looted clean and faith drop to zero. Inverse the possessions from "credit" to "debt", the Billionaires are the one which have the most det and never need to pay back and even happy to be "robbed". Do you wish to rob another one "debt"?

    Money is a non physical idea and depends on faith. What is the scientific unit of faith? It is by the number of supporters who use and believe them like a religion.
    I don't get your logic - fiat is the safest because it has "intrinsic value of zero"? That entirely defeats one of the prime reasons for money - to preserve wealth. While nothing can guarantee that, gold is still the best. For security from theft, it is relatively easy to hide, and not subject to electronic games difficult to understand. With PM's, value is not entirely on faith or culture (and definitely not government decree), it is also due to the metals being desired for various uses in the real physical economy, jewelry and industrial. I also keep diversified with silver and platinum because of what is the high degree of "faith" in gold. No matter, the faith in gold has strong reason, far stronger then with any fiat, so I will use that as core money. Note -- as per my original post, I do know ones local currency, sea shells or whatever, is also important to have, why I allocate 5%.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  4. #4

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    Gold to be a replacement? What. No I prefer to buy my toilet paper with the same equivalent, --- Gold should hold no responsibility in that. nono
    Last edited by Mytal; 07-30-2020 at 02:16 PM.
    Live Well* Love Much* Laugh Often

  5. #5

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    Quote Originally Posted by Mytal View Post
    Gold to be a replacement? What. No I prefer to buy my toilet paper with the same equivalent, --- Gold should hold no responsibility in that. nono
    Seems like you didn't read my full post. Do you use bonds to buy toilet paper? I also did advocate to keep some local currency, just not in large amounts. Anyone using more than 5% of savings/investment for toilet paper needs has some problems best kept private (and in the potty...)
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  6. #6

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    Quote Originally Posted by motocat View Post
    Seems like you didn't read my full post. Do you use bonds to buy toilet paper? I also did advocate to keep some local currency, just not in large amounts. Anyone using more than 5% of savings/investment for toilet paper needs has some problems best kept private (and in the potty...)
    Touche', I am "vested" . I have some extra 18,20- grand would love to park somewhere. Bonds , if you think so. I do not . everything is nuts, I will always buy tp with tp. awaiting a few pharms and amazon to cool down.
    Live Well* Love Much* Laugh Often

  7. #7
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    Lightbulb Gold Replacement

    While I understand your perspective on gold as a replacement for cash and bonds, I would like to provide a more balanced view on this matter.

    Gold has indeed been regarded as a store of value and a form of currency throughout history. Its scarcity and durability have contributed to its allure as an asset. However, it's important to note that gold, like any other investment, carries its own set of risks and considerations.

    Firstly, gold can be subject to price volatility. Its value can fluctuate significantly based on various factors such as economic conditions, geopolitical events, and market sentiment. While it has shown resilience over time, it does not guarantee consistent returns.

    Secondly, relying solely on gold for your savings may expose you to concentration risk. Diversification is a fundamental principle of investing, and it helps to spread risk across different asset classes. By diversifying your portfolio, including stocks, bonds, and other assets, you can potentially mitigate the impact of any one asset's performance on your overall wealth.

    Furthermore, cash and bonds serve different purposes within a portfolio. Cash provides liquidity and acts as a buffer for short-term expenses and emergencies. Bonds, on the other hand, offer income generation and potential capital preservation. While it's true that fiat currencies may experience inflation over time, bonds can still play a role in providing stable income and serving as a counterbalance to riskier assets.

    I would recommend considering a diversified portfolio that takes into account your risk tolerance, investment goals, and time horizon. Allocating a portion of your portfolio to gold, silver, or other precious metals can be a sensible choice, but it's essential to maintain a balanced approach.

    Ultimately, it's crucial to make informed investment decisions based on thorough research, understanding your financial objectives, and consulting with a financial advisor who can provide personalized guidance tailored to your specific circumstances.

  8. #8

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    Where are we with Palladium and Platinum? One could buy an ounce of each for nearly the same as 1 ounce of gold. Now seems like a good time to diversify never bought either, however, central banks don't have any platinum palladium or silver on their balance sheets so gold may be the best option. It wasnt that way Not sure how liquid an oz of Pd is. Even with sanctions on Russia supplying nearly 40% of Pd the price went down. This push for Green eliminating gas engines or need for catalytic converters in the future is not gonna happen as quickly as they want. Somewhere they are laying off workers due to Pd price collapse. Pd price could go back to more of mean of around 800? Or not gonna happen? The Pd tulip mania is over? I have to pay nearly 5% over spot for sales tax here it doesn't warrant a trip to California to buy something small to save 4.712% but it sucks.

    In my first post to start this thread, I did mention perhaps 10% in other metals, one can consider that as "diversifying" within PM's, however while gold can be seen to replace bonds, the other metals I see more like stock, silver perhaps 50-50, while Palladium buy-sell spread is so high, I do not myself deal with Pd bullion (it is really only for the boutique hobbyist), only use the PALL ETF for trading. If you look around, you can find platinum buy-sell spread less than silver, and I believe it is less with the Kitco PM pool. Neither Pd or platinum bullion are that liquid as compared to gold, many dealers do not buy and sell them.. Future on any metal is uncertain, especially how they do relative to each other (long term, all will go up vs fiat which goes to zero), that's why diversifying may be prudent, especially with Pd and Pt near or at all time lows vs gold.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  9. #9

    Default

    Quote Originally Posted by motocat View Post
    I don't get your logic - fiat is the safest because it has "intrinsic value of zero"? That entirely defeats one of the prime reasons for money - to preserve wealth. While nothing can guarantee that, gold is still the best. For security from theft, it is relatively easy to hide, and not subject to electronic games difficult to understand. With PM's, value is not entirely on faith or culture (and definitely not government decree), it is also due to the metals being desired for various uses in the real physical economy, jewelry and industrial. I also keep diversified with silver and platinum because of what is the high degree of "faith" in gold. No matter, the faith in gold has strong reason, far stronger then with any fiat, so I will use that as core money. Note -- as per my original post, I do know ones local currency, sea shells or whatever, is also important to have, why I allocate 5%.
    Do not attempt to preserve wealth. The wealth robbers create a unit of wealth to rob and all desires to keep the "wealth" are being locked and imprison. The reason that system architects can keep the "wealth" system is they can quantify labour and fruits to be looted with the infinite creation rights. Gold limit the growth and Empire cannot grow with Gold but always with Fiat. China past all empires all looting gold and silver to prevent private circulation and release fiat notes for thousands of years. Each revolution is just when all people lost faith and blame the Rulers and "recreate" another new fiat and new faith with new hope. The cycle never end ehen people believe that money is a fair unit for exchange. China do not loot USD but replace it with other systems and even distribute the unit to all alliance which commonly criminalised as "bribe" When using fiat, the rulers do not need tax or send armies to rob you anymore and you live as a safe slaves. If you use Gold, it is just prelude to another war to reset and kill all and the game of looting new Gold to create new Gold backed crypto Repeat. Today mafia do not use Gold, they prefer convenience and economy of least energy to get what they dont deserve call theft and rob. In an empire rules like NK and Nazi, money is replaced by the rights of you to live on Earth and death penalty for refusing to obey order. These enslavements method is costly and always failed. So fiat is invented to create an illusion that you keep wealth when in fact fiat depends on ALL when all support fiat. This inter dependant of Master and Slaves achieve a "peaceful" equilibrium.
    He who knows nothing is closer to the truth than he whose mind is filled with falsehoods and errors. ~ Thomas Jefferson

  10. #10

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    Snakeeater - I think you are thinking a bit to much on this, and anyway, us little boat owners never seem to be able to stay afloat. But life is good, we always find a way to get a new leaky boat. The big and powerful can bicker all they want over control over this and that -- in the end, evolution/creation (call it what you may), still rules -- and from what I have seen, those obsessed with worldly power and wealth (and the hedonism and vanity that goes with it) do not typically do so well in that area.

    Others are fee to do what they want based on so many external fears. Gold has worked well for us PM bugs, those saving in fiat and bonds have been comparative fools, and the data to illustrate this is easy to find.
    Last edited by motocat; 08-10-2020 at 04:44 PM.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

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