Why hold Gold….just look at Turkey

[SilverStorm]

On 24/11/2021 at 23:46, GoldDiggerDave said:

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.   

Agree; I posted about this back in July, it's absolutely heart wrenching to see and watch.   

 

[Centauri167]

I think the problem with gold and inflation has changed a little bit during the last decades/ century.

When you have a global inflation ( like we have now ), gold is not the best protection against it in general.

But when you are talking about inflation ( or better hyper inflation ) in a smaller context like a country or a region that is economical and political not so important, gold is THE best protection, not just against inflation but for becoming richer with every day.

 

That is in my opinion what has changed during the years, we have now less currencies and individual countries. We have many political/ economical blocks and key currencies who are all in one big construction.

Only the smaller and less important countries fall out this protecting bubble and pay the price.

[SlowFrog]

On 25/11/2021 at 07:46, GoldDiggerDave said:

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 

If it happens.. I'd also ask; who is going to be selling? As in, those without PMs and nothing but worthless fiat may need to sell/trade other assets whether that be property, cigarettes or alcohol! Those with PMs won't be letting them go easily if the price has been driven up massively. Horrible situation for all of us in many respects. Even if you own a load of PMs, do you really want to be living in a society like that? I personally don't but feel like a monumental crash is inevitable at some point. For me, PMs are about wealth preservation rather than waiting for tenfold increases. I encourage every one I know to do all they can to minimise their debt and buy whatever they can whether it's scrap gold or silver rounds.

[Centauri167]

14 hours ago, SlowFrog said:

If it happens.. I'd also ask; who is going to be selling? As in, those without PMs and nothing but worthless fiat may need to sell/trade other assets whether that be property, cigarettes or alcohol! Those with PMs won't be letting them go easily if the price has been driven up massively. Horrible situation for all of us in many respects. Even if you own a load of PMs, do you really want to be living in a society like that? I personally don't but feel like a monumental crash is inevitable at some point. For me, PMs are about wealth preservation rather than waiting for tenfold increases. I encourage every one I know to do all they can to minimise their debt and buy whatever they can whether it's scrap gold or silver rounds.

I think that in a SHTF scenario you are always screwed, PM's or not.

In a scenario like Turkey it is different. Let say you want to save for a car or a house, if you put it on your savings account, you will have to save for ever while if you buy every month your savings in gold you can sell it when you have the amount needed without the big inflation loss.

[Minimalist]

14 hours ago, SlowFrog said:

For me, PMs are about wealth preservation rather than waiting for tenfold increases.

Its not in doubt. PMs, under a fiat system IS wealth preservation. Central bankers and governments do not want the lower classes to learn this, instead they follow the narrative that credit systems (to believe - fiat worthless paper) are better. Unfortunately many people actually believe that notes are more valuable than Gold. Its an astounding reality.

[Centauri167]

2 minutes ago, Minimalist said:

Its not in doubt. PMs, under a fiat system IS wealth preservation. Central bankers and governments do not want the lower classes to learn this, instead they follow the narrative that credit systems (to believe - fiat worthless paper) are better. Unfortunately many people actually believe that notes are more valuable than Gold. Its an astounding reality.

I think one of the reasons why is because people don't see the amount on their savings account changing ( except when they do a transaction of course ) while when they look at the gold price they see it changing every second. That they can buy less and less with that amount, they just don't understand, as long as the amount is not changing ...

[Minimalist]

26 minutes ago, Centauri167 said:

I think one of the reasons why is because people don't see the amount on their savings account changing ( except when they do a transaction of course ) while when they look at the gold price they see it changing every second. That they can buy less and less with that amount, they just don't understand, as long as the amount is not changing ...

And they are simply not willing to understand it and the consequences lead them into economic learning difficulties throughout their whole entire life. By the way, make no mistake about what I just typed about economic learning difficulties, this can be confirmed by simply asking the average person on how currency is created, and the usual response is: they simply dont care. Imagine being so ignorant, arrogant and outright delusional to the point that actually believing the existence of currency isnt worth caring about when it consumes 60% of the average persons entire life. To refuse to even look into it is not only incredible but absolutely an indication of slavery.

[RDHC]

17 hours ago, SlowFrog said:

If it happens.. I'd also ask; who is going to be selling? As in, those without PMs and nothing but worthless fiat may need to sell/trade other assets whether that be property, cigarettes or alcohol! Those with PMs won't be letting them go easily if the price has been driven up massively. Horrible situation for all of us in many respects. Even if you own a load of PMs, do you really want to be living in a society like that? I personally don't but feel like a monumental crash is inevitable at some point. For me, PMs are about wealth preservation rather than waiting for tenfold increases. I encourage every one I know to do all they can to minimise their debt and buy whatever they can whether it's scrap gold or silver rounds.

Think of the (in every sense) poor Afghan families with no real assets that are now being forced to sell their young or very young daughters to much older men as brides so as to get some money with which to buy food (so long as that may last).

[HerefordBullyun]

this is some debt mind for US

[Minimalist]

37 minutes ago, HerefordBullyun said:

this is some debt mind for US

[HerefordBullyun]

On 03/12/2021 at 00:48, Minimalist said:

The gospel according to St Jerome the Bellend

Chapter 1:

Inflation is our Lord and Master

I shall print more to avoid disaster

When the markets are down

For I am a fecking clown

If you think there are troubles

Its no problem, I create bubbles

When tech and Stocks pop

You lot will be in the plop

But dont worry I wil be at heavens gates

Making millions with my elite mates  

But you the common man 

Will be right down the s***pan!

Amen

[HerefordBullyun]

https://www.zerohedge.com/markets/turkey-halts-all-stock-trading-currency-disintegrates-central-bank-powerless-halt-collapse

[modofantasma]

42 minutes ago, HerefordBullyun said:

https://www.zerohedge.com/markets/turkey-halts-all-stock-trading-currency-disintegrates-central-bank-powerless-halt-collapse

Could they not just raise interest rates by 0.25%? 🤔😂 Jokes aside I feel sorry for those having to live through that and the consequences 

[CANV]

All they will want are US dollars , then Euros , then either Swiss francs or good old pounds...     gold and silver will trade at a 50 per cent premium for the physical there now...    

you can see why bitcoin catches ob.   

[Centauri167]

13 minutes ago, CANV said:

All they will want are US dollars , then Euros , then either Swiss francs or good old pounds...     gold and silver will trade at a 50 per cent premium for the physical there now...    

you can see why bitcoin catches ob.   

In Turkey hyper inflation is nothing new, every so many years they erase some zero's ...

People always traded in their paychecks for dollars and gold has always been very popular there, but they buy more heavy 24kt jewelry than coins but at the end it is the same.

The big leader gets all of his votes from people living abroad so they will all be happy, every day they have more money to spent on the next holiday ...

[HerefordBullyun]

 

l

You couldnt make this this up lol

 

 

[Centauri167]

11 hours ago, HerefordBullyun said:

 

l

You couldnt make this this up lol

 

 

His votes come from abroad, low intrest rates and a currency that drops every day makes it very interesting for them to invest in real estate in Turkey and plan extra holidays. They become more happy every day so his votes are guaranteed. And if you oppose him you are a criminal or terrorist so he has no internal fear.

This man is crazy but knows what he is doing !

[HerefordBullyun]

1 hour ago, Centauri167 said:

His votes come from abroad, low intrest rates and a currency that drops every day makes it very interesting for them to invest in real estate in Turkey and plan extra holidays. They become more happy every day so his votes are guaranteed. And if you oppose him you are a criminal or terrorist so he has no internal fear.

This man is crazy but knows what he is doing !

hes certainly not the full shilling - its on the cards to be the next lebanon,

[Centauri167]

8 minutes ago, HerefordBullyun said:

hes certainly not the full shilling - its on the cards to be the next lebanon,

I don't think you can compare them. In Lebanon you have many religions, ethnicities and factions in these religions. In Turkey you have one religion and 2 big ethnicities. They also have a strong army, Lebanon has almost no army and many militia.

Situation now in Turkey is nothing new, big difference now is that the media may criticize them now since they are friends with Poetin and nobody still believes they will become a member state of the EU.

[HerefordBullyun]

34 minutes ago, Centauri167 said:

I don't think you can compare them. In Lebanon you have many religions, ethnicities and factions in these religions. In Turkey you have one religion and 2 big ethnicities. They also have a strong army, Lebanon has almost no army and many militia.

Situation now in Turkey is nothing new, big difference now is that the media may criticize them now since they are friends with Poetin and nobody still believes they will become a member state of the EU.

I am saying from a financial position, not a geo poltical one just to clarify. The country is under massive hyper inflation now. 

Edited December 18, 2021 by HerefordBullyun

[Centauri167]

12 hours ago, HerefordBullyun said:

I am saying from a financial position, not a geo poltical one just to clarify. The country is under massive hyper inflation now. 

Ok, I get what you want to say, but as I stated before, this hyper-inflation situation is nothing new in Turkey, every so many years they have to erase the zero's on the money ...

[scotwasp]

Ok, all logic suggests that Turkey will have to change course, but, a big but, could they benefit from low interest rates and a hyper competitive currency if they can hold it together long enough.  They know that the West would probably like to see regime change so while I am struggling to see a historical precedent, it is a very interesting to see if they can hold off the economic/ political attacks and succeed.  
ps 

I’m not suggesting it will work but will make interesting viewing? 

[HerefordBullyun]

5 minutes ago, scotwasp said:

Ok, all logic suggests that Turkey will have to change course, but, a big but, could they benefit from low interest rates and a hyper competitive currency if they can hold it together long enough.  They know that the West would probably like to see regime change so while I am struggling to see a historical precedent, it is a very interesting to see if they can hold off the economic/ political attacks and succeed.  
ps 

I’m not suggesting it will work but will make interesting viewing? 

A regime change by the west wont happen. Turkey is in NATO. Its would be breaking all alliance policies.

Edited December 20, 2021 by HerefordBullyun

[scotwasp]

Was it not the case that a lot of US “retired” intelligence officers and military personnel were found to have been implicated in the coup attempt? 

[HerefordBullyun]

1 hour ago, scotwasp said:

Was it not the case that a lot of US “retired” intelligence officers and military personnel were found to have been implicated in the coup attempt? 

Well it was rumoured (cough) but by military regime change - it wont happen, with NATO ties, the Turkish army is also very big. But sure the counter intelligence angle may or could work but I suspect Erdogan is more the wiser to that now, if it were true.