Re: Marc Faber Buy Buy Buy GOLD before the dollar collapses

Dollar has already collapsed. Hyper inflation will not occur for some years until Real Estate quits deflating.

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[tigranvartanovitch]

Yes, in the simplest models, gold will only maintain your wealth. So what do we do until 2015 while the governments are printing money? Let the banknotes stack up? You don't seem to understand inflation, monsieur. The money loses its value. You therefore have to protect your wealth, by getting your wealth out of fiat currency.

[MrAlanKendall]

@tigranvartanovitch

I do not deny that owning Gold is good. I am just saying that the dollar has already made a massive drop. This favors Gold. I own Gold.

[angeloskouk]

ok first of all hyperinflation DOES NOT come from demand. and if you buy gold and there is hyperinflation, house prices in nominal terms go up but in real terms go down. example:

Gold $1,000------House $200,000 . this house is worth 200 gold coins... next example with inflation...

Gold $10,000-------House $400,000

the price of the home doubled but is now worth only 40 gold coins instead of 200 gold coins.thats what happens in hyperinflation. please educate yourself before posting nonsense

[MrAlanKendall]

@angeloskouk

Exactly, If I have $20,000 in gold now and I hold, I'll have $200,000 in gold later.

But, If I buy a $500,000 home with an FHA loan and it will go to 2 million then I have turned my $20,000 into 1.5 million and I am paying less than rent for my own home. If I am really smart, I leverage the equity when the property goes to $600,000 and buy a rental. Later I sell the rental and pay the taxes, pay off the home and still have $500,000 left over to buy gold.

[HudsonKnowsEconomics]

@MrAlanKendall, what you're not taking into account is that we have 3 times more sq ft per person than in 1970. People can get far more cozy. For example, kids are staying at home like they do in other countries with high unemployment...until they're 35. This will keep rents really low, but the CPI will double when commodities triple. Services, wages, and housing can stay flat, but we can still have strong inflation from commodities.

[MrAlanKendall]

@kellerj0

The $USD indicator can be plotted on stockcharts and shows the value of the US dollar against a basket of foreign currencies. Under Reagan it shot up to 160 (60% above value). Under Clinton it Shot up to 140 (40% above value). Currently it is at 79.10 (-20.9%) so the US dollar is trading below half of its peak under Reagan. In the 1970's when unemployment shot up and rates got up to 21% the $USD fell to 70 (-30%). $USD is low because the US Govt releases 4.1 Billion per day.

[kellerj0]

@tatomuck18 what makes you say this? Any evidence?

[tatomuck18]

The dollar is not collapsing. Its just that other dirt poor countries are moving up and getting better.

[eatandtravel]

@me98321

What? If there is hyperinflation, they can turn your fix loan into a variable. Where did you get that?

[maximusTLP]

@MrAlanKendall in 1971 average house was 20,000 and silver was about 1.39 an oz. by 1980 the average property was worth 42,000 and silver sky rocketed to 52 an oz. if you would have bought 20,000 dollars worth of silver in 1971 your investment would have been worth 770,000 dollars in 1980. I think that you are incorrect, yea the price of the house might go up, but the value will go down. in the example i just showed you real estate went up 100 percent, silver went up over 4000 percent.

[maximusTLP]

@labrath1 I don't think you understand what buying gold or silver even means. lol. what good is a few cans of food going to do you when you can only buy small amounts right now, it is not like you can buy 10 years supply worth of canned tuna lol. you invest in gold, the price explodes, and you use that to buy land for agriculture duhh.