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Someone coined the phrase "dragflation"

I cant recall where i read it but it seemed to make sense at the time

 

edit: found it here

I have read so much stuff over the past while that i think i am at the same place before i started reading

 

Stagflation in drag. :lol:

 

Does it involve a currency crisis?

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I have been watching the Gold:Silver ratio chart and the USDX chart. I have noticed recently that the movement in G:S ratio appears to be around 4 days behind the USDX, and have been swapping Gold for Silver via GoldMoney. I swapped at 72 and am hoping to change back at around 45.

 

Is anyone else doing this?

 

Check the charts out;

 

GS2.pngUSDX2.png

 

 

 

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I have been watching the Gold:Silver ratio chart and the USDX chart. I have noticed recently that the movement in G:S ratio appears to be around 4 days behind the USDX, and have been swapping Gold for Silver via GoldMoney. I swapped at 72 and am hoping to change back at around 45.

 

Is anyone else doing this?

 

Yes, but unfortunately too soon. My crystal ball obviously needs dusting.

 

Gold versus Silver

Volatility & Swapping

http://www.greenenergyinvestors.com/index.php?showtopic=3127

 

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Yes, but unfortunately too soon. My crystal ball obviously needs dusting.

 

Gold versus Silver

Volatility & Swapping

http://www.greenenergyinvestors.com/index.php?showtopic=3127

 

Sorry I missed that thread, thanks for drawing it to my attention. I swapped twice once at 62 and again 72.

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UK residents (i.e., Sterling investors) - do you realise gold is now just 5% off of its all time high :)

 

Good spot :lol: What is the all time high for 1oz of bullion gold bought from a dealer ??? i.e. a scratch up kruggerand, no wise cracks on numis :lol:

 

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Sorry I missed that thread, thanks for drawing it to my attention. I swapped twice once at 62 and again 72.

 

It's OK !

 

I'd like to hear your views on that thread as time goes by :D

 

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UK residents (i.e., Sterling investors) - do you realise gold is now just 5% off of its all time high :)

 

ex UK residents do too :D :D

 

I still tend to think in pounds, even though they are effectively irrelevant to me now.

 

£478.9. Yes, very nice :D

 

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Sorry I missed that thread, thanks for drawing it to my attention. I swapped twice once at 62 and again 72.

 

I swapped quite a lot at 62 and was thinking about more at 74 but, frankly, silver's too darn scary! I have a G to S ounce ratio of 1:120 now - that's bullion and doesn't factor in juniors and PM funds.

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All real stuff would have to become more valuable as all paper assets deflate. A secular bull market in commodities is still on but I think things will become really confusing for investors once the currency gets into trouble.

 

With the "liquidity" crisis, we already see the beginnings of a currency crisis [even though the pundits only see a banking crisis] in so far as one of the functions of money is to be a medium of exchange. Money is freezing now, losing velocity, and in becoming illiquid is, at a certain level, losing this function.

 

I think the currency crisis will fully arrive when another function of money is lost; that of being a measure of value. This is where it will be extremely difficult for the market to give a measure of value to something in dollar prices. Until the market becomes fully aware of the currency crisis, I imagine market prices will be chaotic. This could lead once again to a huge round of deleveraging, leaving many to doubt the commodity bull. Those who clearly see instead a currency crisis will just ride it through.

 

Edit: I am not an economist... and consider that an advantage. :)

 

Cheers for that RH. (Must say, do appreciate your input.) Yes, I reckon I'll ride my commodity investments through... Am taking a long-term 'pension' view on them, with my PM stuff acting like a mid-term 'savings a/c'. Or something like that!

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Now this is pure joy for goldbugs:

 

Gold futures climb another $30

By Steve Goldstein, MarketWatch

Last update: 4:48 a.m. EDT Sept. 18, 2008

http://www.marketwatch.com/news/story/gold...3-7594EE7D26E5}

 

The rally in gold extended Thursday as the turmoil in financial markets led the Fed and five other central banks to take further efforts to get money markets moving again.

 

After a $70 rally on Wednesday, gold futures rose $32.90 to $883.40 an ounce in electronic action.

 

"We have been surprised that gold has been so heretofore quiet, and have expected a much stronger and more immediate response to the government takeover of GSE/mortgage and insurance entities, and broker-dealer bankruptcies," said John Hill, an analyst at Citigroup, in a note to clients.

 

"It is notable that the hard-core goldbugs have been proven correct in the decade-long contention that an overwhelmingly vast and complex pool of nested financial derivatives would ultimately result in cascading defaults and ruin for major portions of the banking system. Frankly, we're surprised that gold is not already at $2,000 per ounce," he added.

 

"Physical demand is breaking records, mining supply continues to fall, and the economic environment is, of course, promoting safe-haven demand," Lundin continued. "The shorts are covering, the funds are buying back in, and everyone wants the safety of gold."

 

:D :D

 

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Gold: exactly a USD 100 rise in exactly 24 hours :)

 

Wot, more manipulation? ;)

 

 

A question about Goldmoney & BV if I may.

 

Banks feed the accounts.....LloydsTSB for BV.......all sorts for their customers (inc. me)

 

Am I being paranoid seeing a problem if/when total meltdown occurs?

 

 

 

 

 

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VIX: 40.05 Change: +3.83

Open: 36.10 High: 40.05 Low: 34.23 Volume:

Percent Change: +10.57%

 

SPX-1132 here we come?

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