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I’m going to try and answer both of you in this single post. First, Protocols but it will also answer Nem to an extent.
Being all in with gold is never a bad thing if you are going to go all in with metals. It has stood the test for millennia and I see no reason for it to fail against a totally fucked-up dollar. However, if you believe the precious metals are going to explode then gold isn’t the best one. Here’s why:
I recent months the gold to silver ratio (GSR) has been in the 90s and this is about as high as it gets. The only thing it can do is either hover around this level or silver makes ground. Now during the 2011 bull market on metals the GSR went as low as 30-1. If we get the crash we all expect it’ll go lower than that but, for now lets accept that it goes to 30 from 90. Let’s assume you have 90 pieces of silver right now which will buy you one gold coin. Okay, GSR drops to 30 so now you can get a gold coin for 30 pieces of silver so you sell your silver and buy 3 gold coins. Now after the reset and things settle, let’s say the GSR goes back to 90. Now you sell your 3 gold coins for 90 silver coins each. You now have 270 silver coins, three times what you started with. Because the GSR is so high right now you’d be better off changing it to silver if you believe metal prices will explode. Believe me, if gold takes off, silver will follow very soon behind it and will actually outpace gold. If you are going to try and get the best out of gold and then hope to get into silver before it takes off or you could well end up disappointed. The reason for this is that 90% of the action will occur in the last 10% of the run.
One other good thing about silver is that there is virtually no downside to it. The price is suppressed to fuck yet it’s still managing to climb. If the Fed’s magic tricks manage to hold things up for another few years you aren’t going to lose anything because silver can’t really fall much; and if it does, you just wait it out until the market moves – even buy more! Just remember with silver: when you see it start to really outpace gold then that will be the time to get back into gold. Don’t wait too long because silver is very volatile because it’s a small market. Hardly anyone ever sells at the top so don’t be afraid of going too early; be afraid of going too late!
So when do you sell? This bit will also answer @hopingfornemesis question. I’m going to give you a GSM line to keep in your mind and that line is the GSM at 40-45. If it’s above 45 you should be looking to hold silver; if it goes below then that’s when you need to be thinking about turning your silver into gold. A GSM of 40-45 is round about the mid point. As to when you should move as the GSM is heading lower, well, IMO, that decision should be based upon whether silver has started to outpace gold. When silver’s gains are higher in percentage than gold and gold’s rate of increase is dropping then that’s when you should be looking to get back into gold. I hope this enlightens things for you; if not, feel free to ask anything.
Now to real estate. Personally I would wait for the crash and for the arse to fall right out of the market. Remember when Japan’s economy collapsed in the early 90s? Well their real estate market went down 85%. Yes, you read that right: eighty-five percent! People are going to be so broke in the crash and they are going to need capital fast. Real estate and other assets will be at firesale prices….except for gold and silver. Those 270 silver coins I mentioned earlier in the post will possibly buy you the whole fucking cul-de-sac!
Okay, a long post, hope I covered it all. Like I said, just ask if there’s anything else you want to know. I’m no expert but hell, I’m learning fast! @theprotocolsofzion If you are unsure about silver then take a look at what the Chief Investment Officer and co-founder of Guggenheim Partners had to say. It just the last 40 seconds of the vid but I’ve set it to start there. Nem has seen this but maybe you haven’t.