Where to hide your money
Posted by Frugal on February 17th, 2009
As most readers are aware of, I’m a long term “investor” in gold. I don’t trade out of my precious metal positions much at all. At least until the end of 2011, I will still be in gold.
Here is a chart for gold in euro:
In terms of other currencies (except Japanese Yen), gold has already shattered previous high by a respectable margin. Later this year, we should be looking at a new all time high also in the $US. I personally don’t think that there will be any place to hide your money besides gold and gold stocks. With the second major wave of option ARM mortgage reset coming this year, most of the financial stocks will probably “go towards absolute zero”. It will be the so-called reckoning day, when more bad loans will be put onto the balance sheets of banks.
You can count on Wallstreet and Greenspan single-handedly destroy the entire credit-based economy. With Congress also in bed with the greedy bankers, no bailout can save this economy. Can somebody tell me anyone going into jail because of the frauds in credit ratings or mortgage loans? If “these people” are able to unravel Spitzer’s prostitution scandal in 1 week, why can’t they put the responsible people in jail? We had a financial scandal on Wallstreet 50X bigger than Enron, and nobody went to jail because of that. Where is the outrage? Of course, Congress is still giving out bailout money. And these executes have the guts to tell the public that they are NOT mis-using taxpayer’s money. If your company is operating with huge losses quarter after quarter, any single penny paid into your pocket is coming from taxpayers. Isn’t that a common sense in basic accounting? How dare they speak!
If the Congress let all these bad banks (Citibank, Bank of America, WellsFargo, Morgan Stanley, JP Morgan) fail, and simply start new banks, everything would be much better. But they had to save their “buddies” and cover their own trails of course. And so, until then, keep your money in safe haven like gold. One day they will destroy the last remaining asset that we have, confidence in $US and any credibility remaining in our country.
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February 17th, 2009 at 6:40 pm
Given when interest rates are, and the intervention of the federal government the interest rate resets won’t be that bad. People who still have jobs will still be able to afford their mortgages even if housing prices are lower. The bigger problem over the next two years will not be ARMs resetting, but people who will not be able to afford their mortgage because they don’t have a job.
As for letting the banks fail, it’s not going to happen. If the current banks fail, half the companies America would fail with them. The interactions run way too deep. We’re all in this together for better or worse.
February 17th, 2009 at 8:47 pm
all assets will suffer. we are in deflationary environment
February 18th, 2009 at 11:21 am
“In terms of other currencies(except Japanese Yen), gold has already shattered previous high by a respectable margin. Later this year, we should be looking at a new all time high also in the $US. I personally don’t think that there will be any place to hide your money besides gold and gold stocks.”
So . . . put money into gold when gold is at it’s highest point in years? I’m no genius, but that seems to be textbook “buy high” to me.
February 18th, 2009 at 3:29 pm
Who can put them in jail? They make the rules. I’m so sick of it.
February 20th, 2009 at 5:36 am
how you can buy gold? gold bars?
February 21st, 2009 at 9:03 am
Hey Frugal,
Wing is asking the same question I had, how are you investing in gold, buying bars, ETF’s, goldmining stocks?
Thanks,
James
February 28th, 2009 at 4:27 pm
you forget the obvious, that congress had a big hand in creating policies which created this environment. Now, you think they can somehow recreate a better banking system, when they were the ones that destroyed it too? spending another $4trillion of debt? unfortunately, gold is NOT a safe haven, especially in your scenario of starting new banks. Someone tell me why gold would be any better of a tradeable commodity versus currency. sorry, 2-3 years is not long term. i will say, though, there are plenty of people with the same mentality that have driven up gold prices without fundamental justification (much like oil). I’m all for riding the wave, but any stabilization of the markets will make gold sink faster than lead.
February 28th, 2009 at 9:44 pm
He is probably holding gold bars in a safe. You can also invest in gold through ETFs, but if he doesn’t plan on selling then gold bars or coins is probably the best bet. But, I’ll leave the real response up to him =).
You may want to check out the 2x Gold ETF I saw the other day. I think it’s from pro shares or one of those ETF companies, not exactly sure which.
March 4th, 2009 at 8:13 am
Frugal,
Can you please let us know how we can invest in Gold?? I recently bought some gold mining company stocks, anything else you recommend to all of us??
Thanks,
Nisrine
March 11th, 2009 at 1:34 pm
Please visit our website thehni.co.cc
March 11th, 2009 at 1:36 pm
get 5% per month. guaranteed.
visit thehni.co.cc
March 15th, 2009 at 1:50 am
So, Mr 1st Million or Frugal, how do we take our US$, and ensure that if we use US$ to buy Gold, the value of that GLD or SLV fund will NOT devalue along with it.
Are we better off doing it in another currency, but first opening a ‘foreign currency account’ and then buying Gold from it?
Thanks.
Kenny