Why hold Gold….just look at Turkey

[dicker]

Earlier in the year Erdogan asked citizens to sell gold to support the Turkish Lire.

Turkey has cut rates sharply over the last three months which (as the Turkish people know all too well) will ramp up inflation which has long been an enemy of the Turkish people.   To be able to cut rates he fired treasury officials who wanted to follow a policy of defending the Lire.

Yesterday, Erdogan commented that Turkey is “fighting an economic war of independence” and crashed the Lire by 15 percent.  This brings the decline of the Lire to around 40 percent this year against most currencies.  

Turkey currently has an inflation rate of 20pct, and that’s only going to go up….  

I can see few better examples of why citizens of any country should hold gold.

[motorbikez]

Erdogan is a complete fool but it clearly illustrates when people who have zero grasp of economic realities what can happen. As per usual it is the people who suffer. You can 100% guarantee Erdogan will be just fine.

 

[beacon]

Sad for the great country and people of Turkey. Hope folks there stacked gold/silver before SHTF.

[Tortoise]

Totally agree with you @dicker

I could hardly believe it when I heard his call for people to sell gold earlier this year.  (Although putting my cynical hat on,  I could easily believe it).

Holding, for example, a global equity tracker fund, or even a S&P 500 tracker for the USA would have helped preserve anybody's saving in Turkish Lire terms.  But gold deserves a place in everyone's long term wealth preservation strategy.

[modofantasma]

As the saying goes... it's better to be years early than a minute too late  

[Minimalist]

6 hours ago, dicker said:

Earlier in the year Erdogan asked citizens to sell gold to support the Turkish Lire.

Erdogan is a w*nker - no doubt they Turks done it no problem.

[HerefordBullyun]

Might be dip buying opportunity in this pair

[Minimalist]

2 hours ago, Tortoise said:

But gold deserves a place in everyone's long term wealth preservation strategy

Only the wise do.

[HerefordBullyun]

 

[dicker]

This note was from 1999. TRL (as it was then) reached something like 1.7m to the USD by 2004.

This won’t end well for the Turkish people.

[Minimalist]

1 hour ago, HerefordBullyun said:

 

Hes right, the inflation data isnt as manipulated as the West so the markets are reacting accordingly.

Imagine the Fed lifting the hood (announcing the real figures/data) the entire planet would be short $, long metals

[HerefordBullyun]

1 hour ago, dicker said:

This note was from 1999. TRL (as it was then) reached something like 1.7m to the USD by 2004.

This won’t end well for the Turkish people.

Here Ive fixed it for you....

 

[Paul]

Keep HODL'ing guys, wherever you are. 

[GoldDiggerDave]

11 hours ago, HerefordBullyun said:

Here Ive fixed it for you....

 

Get this man working for the BOE!   He's a genius!  

Joking aside I've been watching what's been going on in Lebanon and it's nightmare inflation has took off the local currency is worthless.  Dollars on the other hand are worth 15-20x more so those getting paid in dollars or those holding dollars are becoming hyper rich.   Inflation is running so fast the shops can not change the prices on the goods fast enough.   

It's coming for all of us, it's only going to take the new British gas and Shell energy monopoly to ramp up prices in the first 1/4 of 2022 and you know the BOE are going to start raising interest rates to try and hold back inflation but it won't be anywhere close, we are likely to see a run  of 0.1% monthly increases starting December possibly well into 3/4 of 2022.

I still have my doubts about PM's   As much as I'd love for it to be revalued, and the estimates now are crazy per oz (I know anyone can say anything) but what I'm getting at on the day PM's go to the moon.........Who's going to be buying?

Cheers

Dave 

[Bumble]

I remember, back in 2009, thinking that the Zimbabwean $100 trillion note would become collectible, so I bought one on eBay for £5. They are now selling for about £150. I should have had more conviction and bought a whole bunch.

[HerefordBullyun]

1 hour ago, Bumble said:

I remember, back in 2009, thinking that the Zimbabwean $100 trillion note would become collectible, so I bought one on eBay for £5. They are now selling for about £150. I should have had more conviction and bought a whole bunch.

Thats some expensive fiat  toilet roll right there

[HerefordBullyun]

https://www.zerohedge.com/markets/hyperinflation-turkey-wine-prices-15-one-day-chicken-and-cheese-10

[Bumble]

1 hour ago, HerefordBullyun said:

Thats some expensive fiat  toilet roll right there

Funny that you mention toilet roll, but apparently during the hyperinflation in Zimbabwe, the point was reached where if you bought a roll of toilet paper you were handing over more paper in banknotes than you were getting back in tissue. So, people did the predictable thing and started wiping themselves with banknotes and flushing them. The result was that it became common in public toilets to see a sign saying please don't flush banknotes because they block the toilet.

You can buy novelty banknote toilet paper on Amazon if you feel like showing the Federal Reserve or the Bank of England how you feel about their currency.

[MonkeysUncle]

Note to self: don't react on impulse to headlines.

I've just been to Asda. I bought turkey, it's boooootiful. So much cheaper per ounce than this gold stuff. Also more tasty ;)

[scotwasp]

On 24/11/2021 at 17:17, HerefordBullyun said:

 

 

What a great listen, don’t know how much is correct, but fantastic stuff

[HerefordBullyun]

7 hours ago, scotwasp said:

 

What a great listen, don’t know how much is correct, but fantastic stuff

another good listen about inflation in general

 

Edited November 26, 2021 by HerefordBullyun

[Centauri167]

I know Turkish people who told me that 25 years ago, the people ran to the exchange office when they got their salary to convert it in USD.

Savings were often made in gold, it's also cultural to give gold as a gift.

 

If the world was not so crazy this days, I would convert all my savings in gold but now I just keep on buying every month my salary in gold, which I don't need because I have other incomes. But in a crazy world, even my believe in gold is not sure any longer ...

[dicker]

8 hours ago, HerefordBullyun said:

another good listen about inflation in general

 

The interview with Mohamed El Erian was rather good.  His commentary and opinions are always worth a listen. 

[sjhdesmond]

On 25/11/2021 at 13:57, MonkeysUncle said:

Note to self: don't react on impulse to headlines.

I've just been to Asda. I bought turkey, it's boooootiful. So much cheaper per ounce than this gold stuff. Also more tasty

Cover it in gold leaf and sell it to rich morons.

 

[scotwasp]

What is a wee bit shocking is that even although you know a lot of this stuff, it kind of bypasses you until you join a forum like this and pay a bit more attention to what you guys are posting.