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Thread: Stacking physical cash

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  1. #1

    Default Stacking physical cash

    I believe that stacking physical cash will be very precient. Consider this to diversify your PM stack.

  2. #2

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    Considering the the bank runs we are now seeing in Europe it is not a bad idea at all to make a preemptive strike. But I don't want to be the guy holding cash in the case of QE3. Who is best prepared? The ones who can defend on multiple fronts.

  3. #3
    Join Date
    Apr 2010
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    Quote Originally Posted by SilverSlug View Post
    Considering the the bank runs we are now seeing in Europe it is not a bad idea at all to make a preemptive strike. But I don't want to be the guy holding cash in the case of QE3. Who is best prepared? The ones who can defend on multiple fronts.
    That is why you would be holding cash. QE3 will provide many opportunities for making a huge profit with it.

  4. #4

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    Quote Originally Posted by theplantguy View Post
    That is why you would be holding cash. QE3 will provide many opportunities for making a huge profit with it.
    how exactly?

  5. #5

    Default

    Quote Originally Posted by Silvercoin View Post
    how exactly?
    yes ditto !

  6. #6
    Join Date
    Apr 2010
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    Just look at how the various markets and asset classes behaved after the last QE's

  7. #7

    Default I recently pulled out BofA money

    A few weeks ago...is this considered stacking physical cash ?

    Some might consider it just an old-fashioned bank run.

    I needed to make sure I have enough cash to pay my County Taxes (every 6 months).

    I was concerned BofA might have a major bank run any day now...so I got my County tax money together early...then put money back in slowly based on income.

    I also converted some of the physical cash to Gold as another way to hedge my extraction.

    It feels better to have less in-the-bank cash...to avoid pesky bank runs or SHTF events.

    Keep stacking.
    Buy Gold and Silver, then wait.
    Gold, Silver: Beautiful Insurance in Ugly Situations
    Monetary triangle: U-Unit of Account, W-Store of Wealth, M-Medium of Exchange.
    PMs are unencumbered tangible fungible fractionable portable durable liquid insurance...without counter party risk; elementary, "Internet Safe" w/o tech issues.
    Silver cheaper than Gold, both precious !!
    Gold and Silver are elemental with no man-in-the-middle.

  8. #8

    Default

    Quote Originally Posted by HardlyPeeved View Post
    A few weeks ago...is this considered stacking physical cash ?

    Some might consider it just an old-fashioned bank run.

    I needed to make sure I have enough cash to pay my County Taxes (every 6 months).

    I was concerned BofA might have a major bank run any day now...so I got my County tax money together early...then put money back in slowly based on income.

    I also converted some of the physical cash to Gold as another way to hedge my extraction.

    It feels better to have less in-the-bank cash...to avoid pesky bank runs or SHTF events.

    Keep stacking.
    Yep, that is what I am talking about. Physical cash, like 20's and 100's. You know, the stuff with past presdent's heads on them.

    Oh, and did you close that BofA account? Use a credit union or local bank.

  9. #9

    Default Stacking Physical Cash

    We should have a dollar thread, since stacking physical cash is definitely a strategy given the recent events.

    My prediction is the dollar will continue to get stronger, breaking 100 on the index by the end of the year.

    Given the capital flows, it is the safest investment available today. Physical Cash.

  10. #10

    Default

    Here is a timely article to support my claim:

    http://www.zerohedge.com/news/2013-0...-dollar-higher

    "All this leads to two powerful tailwinds to the value of the dollar. One is simply supply and demand: as the global economy slides into recession, trade volumes decline, and the U.S. deficit shrinks. (It's already $250 billion less than was "exported" in 2006.) That will leave fewer dollars available on the global market.

    In the case of the U.S., which exports large quantities of what the world needs (grain, soy beans, etc.) while buying mostly stuff that is falling in price in recession (oil, surplus manufactured goods, etc.), the trade deficit could decline significantly. (It is currently around $40 billion a month.)

    And what does a declining trade deficit mean? It means fewer dollars are being exported. The global GDP is about $60 trillion, of which about 25% is the U.S. economy. Into this vast sea of trade, the U.S. "exports" about $500 billion in U.S. dollars via the trade deficit. Put in perspective, it isn't that big compared to the machine it is lubricating.

    So what happens when there are fewer dollars being exported? Demand for existing dollars goes up, pushing the "price/cost" of dollars up--basic supply and demand.

    The second tailwind is the demand for dollars from those exiting the euro and yen.The abandonment of the euro is already visible in these charts, courtesy of Market Daily Briefing: Peak Euros.

    We can anticipate this desire to transfer euros and yen into dollars will only increase as those currencies depreciate. Let's say, just as an example, $5 trillion in euros starts chasing $1 trillion in available U.S. dollars. What will that do to the value of the dollar?

    Some ask why those selling euros won't buy Chinese yuan. Where are you going to find $1 trillion in yuan? It isn't even convertible on an open market, and since China is an importer of currency, there isn't 1 trillion yuan floating around the global marketplace to buy even if you wanted to.

    Many people scoff when I suggest the dollar could rise 50% (i.e. the DXY dollar index could climb from its current level around 80 to 120) or even 100% (DXY = 160) in the years ahead. I know it's the highest order of sacrilege to even murmur this, but if global demand for dollars picks up, the Fed isn't printing nearly enough to dent the rise in the dollar."

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