I think we have. As the credit bubble was deflating last summer/fall, gold declined from the mid 900's to the low 700's. I am hedging against a repeat performance. I agree that the purchasing power of gold would rise in deflation. I also think its nominal value (i.e., how many US dollars gold will buy) would recover after taking a hit like last fall.

I am still anticipating a USD rally, but perhaps I've overestimated the strength of its inverse correlation with gold.

And at the same time, gold was making new all-time highs in Euros, etc.

From time to time, one country's currency will rally against others for whatever reason. When that happens, gold in that currency may suffer temporarily.

However, grand scheme - we are in a currency devaluation race to the bottom while gold rises to the top in fits and starts.

what does your portfolio look like? (interested in all replies).

im currently
30% gold (around 12% via bullionvault.com and remainder in gold miners fund),
50% cash (mostly GBP or CHF whichever is better due to terms of loan ive given to friend)
20% mix of equity and commodity funds

im tempted to transfer some cash (when i can) into agriculture (seems relatively low at the moment), maybe 20% from cash to agriculture etf. Are these etfs safe do you think?

comments much appreciated

john ps. anyone else gutted they didnt leverage (or at least invest) a bit on silver? i am!

Currently, a mix of:

Physical gold & silver
GDX options
Energy ETFs
AGQ (double silver ETF)

Note: these are special circumstances. Normally, I would not be so overweight commodities.

Further, if all goes according to Hoyle, I'll be taking profits within a few weeks in order to trade the October earnings/option expiration cycle.

Article in The Daily Telegraph

I thought they were expensive too. But I realized they are "proof-like" and specialty coins. It sounds like redemption for coins isn't necessarily the main point. You can "barter" your silver with anyone in the network.

I am going to be following this bank, and the liberty gold people also.

Oh man, I'm getting excited.

Liberty gold wanted your name and address. I guess it's because they gave a mastercard and worked with a "legit" bank.

ETA till IRS scepter of doom?

Yeah, there's always that.

I don't understand how the IRS has juristiction over warehouses, but I imagine that's what a government court will find.

Gold surges past the $1000 mark...spot is at $1003 atm.

binions you must be shipping it in!

is there any other long terms investments that should hold their value with potential high inflation and possible currency collapse?

agriculture etf? real estate fund?

just dont want to put more into gold and silver right now, hoping for some sort of pullback to buy more.

And that's all assuming this isn't a scam. Not that I wouldn't love for this to be legit. But chances its not a scam and doesn't get shut down is pretty low IMO. Especially using the word "bank".

Gold over $1010 at the moment.

Gunning for an all-time daily and weekly close record.

if i had some gold i wouldnt sell it for under 10K ounce

Really? What would you buy it for?

and that's why you're broke.

Gold vs papermoney http://www.financialsense.com/fsu/ed...2008/0917.html and http://libertysilver.se/pages.php/pa...ey/language/en

Is someone higher up even paying attention

Why not sell for 9k an ounce, then buy 9 MORE OUNCES with the money???

Because of what ArturiusX said.

I'm not huge into shining metal.....BUT

I agree 100% with abolishing welfare. I have a lot of section 8 tenants and they're lazy as SHIIIIITTTTTT!!!!

On the topic of "peter schiff"

I'm like 75% sure he said in one of his youtube videos that he doesn't currently run a fund but is trying to start one up hopefully by 2010.


edited to add: it'll be a classic active mutual fund (not 2/20) and he's waiting on approval/investors right now

Gold's at $1018 right now, yo.

Here's why to buy gold.
http://www.wtv-zone.com/Mary/BIGGESTSCAMINHISTORY.HTML

Doesn't necessarily have to be gold, could be land too. Just GET SOMETHING BESIDES PAPER!

I have a feeling the dollar is going to end up like Lehman Bros. Everyone senses something is wrong and things start to drift down then one day it just blows out and is worthless. After all.. that's exactly what it is.. worthless.

I've been accumulating gold/silver since I started to understand what's going on at the $13.50/$850 levels. I'm now actually in the process of buying 50-100 acres out in Colorado just for the hell of it (well and a place to hang in the rockies come 2012) instead of hanging on to cash/ buying more pm's. Anyone who would just hold large amounts of cash is crazy.

Yes and no. There's a war going on right now. There are huge deflationary forces being met with worldwide inflationary stimulus. There will be times when having cash to buy assets super cheap will come in handy. At other times, you'll want to be in precious metals.

BTW it's clear to me that in the end, the inflationary forces will ultimately prevail. But that may not be until ~2020.