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2008 Credit Crunch - Was gold easy to liquidate?


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It’s honestly hard to predict given the odd way Governments and Banks have pumped money into the economy.  I think no one under 35 really knows what a recession feels like.  
 

I was more interested because I was in the middle of stopping a bank settling with Lehman, Bear etc, and didn’t have time to think about my favourite commodity.

Best

Dicker

Not my circus, not my monkeys

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3 hours ago, dicker said:

Hi All

Can anyone confirm if gold was easy to liquidate for cash during the 2008 credit crisis?

I didn’t have direct experience but am interested.  

Best

Dicker

I didnt because I was too busy propping up the ponzi scheme fighting wars based on a pack of BS.  I dont think it would be too difficult to liquidate - there is always demand for shinies.

Central bankers are politicians disguised as economists or bankers. They’re either incompetent or liars. So, either way, you’re never going to get a valid answer.” - Peter Schiff

Sound money is not a guarantee of a free society, but a free society is impossible without sound money. We are currently a society enslaved by debt. My favourite chat up line - J'adorerais te mettre dans la pipe.
 
If you are a new member and want to know why we stack PMs look at this link https://www.thesilverforum.com/topic/56131-videos-of-significance/#comment-381454
 
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I’m under 35 and wouldn’t say I’ve experienced a full on recession in my adult life i was 18 in 2008 and think it’s a good question put forward by @dicker.

It seems obvious that gold will always sell but when the brown stuff hits the fan like in 2008 and everyone is selling it’s good to know who’s buying and how easily. If everyone goes to the proverbial pawn shop to sell at the same time and no one is buying i assume only those with very deep pockets can survive.

I’ve invested across most asset classes and they’ve only ever gone up - not in a straight line - but still up so definitely wouldn’t say I’ve experienced a full on recession. I hope diversity is the key in such hard times. I’d also be interested to know the answer to dicker’s question as i see gold a back up should it be needed!

 

Edited by AuricGoldfinger
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Thanks @AuricGoldfinger

I just don’t know if gold was very easily liquidated. Whilst many here would take PM’s as payment, currency was in massively short supply and people needed it badly and quickly.

My guess is that it was easily liquidated but don’t know.  
 

I can’t remember if an posted here or elsewhere but went into an Audi showroom at the height of the credit crunch and saw an A8 with 30k off if it was bought that weekend.  For a short period of time, cash was king. 
 

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Dicker

Not my circus, not my monkeys

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Brilliant question!

I hope we don't need to liquidate, surely holding gold through a recession is the only way to keep your wealth safe until it's over?!

Do you mean physical cash was in short supply @dicker ?

I recall seeing images of queues at ATMs...could the UK go full Greek?

Edited by Roy

Technically, alcohol is a solution..

'It [socialism] poses a growing threat, however unintentional, to the freedom of this country, for there is no freedom where the State totally controls the economy. Personal freedom and economic freedom are indivisible. You can’t have one without the other. You can’t lose one without losing the other.'

"There is no such thing as public money, there is only taxpayers' money"

Let not England forget her precedence of teaching nations how to live, and It's  Britannia, with one t and two n's.

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1 hour ago, Roy said:

Brilliant question!

I hope we don't need to liquidate, surely holding gold through a recession is the only way to keep your wealth safe until it's over?!

Do you mean physical cash was in short supply @dicker ?

I recall seeing images of queues at ATMs...could the UK go full Greek?

Hi Roy

Exactly the point about cash.  I totally agree that holding gold works, but I don’t know if there was a problem at the peak of the credit crunch with getting cash for gold.

I am only asking because I simply don’t know.

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Dicker

Not my circus, not my monkeys

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A very interesting topic and I look forward to further replies :)

Times have changed and while I do live in a fairly affluent part of the country, the last recession that seemed to really affect most people's lives here was in the 90s. After that with the rise of credit and acceptance of debt (apart from mortgages) and long-term debt at that if 'necessary', people used that to keep their basic lifestyle up and cut out the 'luxuries'.

I absolutely don't think that will be an option 'next time' and a LOT of the 'comfortable middle class' around here will have a very big wake up call...

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4 hours ago, dicker said:

Thanks @AuricGoldfinger

I just don’t know if gold was very easily liquidated. Whilst many here would take PM’s as payment, currency was in massively short supply and people needed it badly and quickly.

My guess is that it was easily liquidated but don’t know.  
 

I can’t remember if an posted here or elsewhere but went into an Audi showroom at the height of the credit crunch and saw an A8 with 30k off if it was bought that weekend.  For a short period of time, cash was king. 
 

Best

Dicker

I know this is strange, but 2021 Audi A8’s are currently back at £30k off list, also, incredibly, with 2nd hand cars up 30%ish  in value many new electric cars such as the Mercedes people carriers are being discretely discounted!  Meanwhile rolls Royce and other high premium brands are still up massively, it seams the softening is happening in the mid range assets first. 

There are a number of very strange price movements going on in a number of non PM markets.  I noticed a lot of this kind of stuff happening in the couple of years before the 2008 crash.  
I think we may well be about to see a very significant economic shift take place in a number of markets and as someone who has navigated them before, I suspect most people won’t believe just how destabilising they can and will be.

 

 

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3 minutes ago, LawrenceChard said:

During the Credit Crisis, physical gold was in short supply, very similar to the situation during Covid, so yes it was easy to liquidate.

I remember selling gold for £850 per ounce before the SHTF 2007 I believe, prices were up and there was a buzz. PMs subsequently dipped but eventually rebounded. Much like the COVID liquidity crunch as Lawrence says but more drawn out. From memory without looking at charts.

Off to study charts now.

"It might make sense just to get some in case it catches on"  - Satoshi Nakamoto 2009

"Its going to Zero" - Peter Schiff 2013

"$1,000,000,000 by 2050"  - Fidelity 2024

 

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3 hours ago, Roy said:

Brilliant question!

I hope we don't need to liquidate, surely holding gold through a recession is the only way to keep your wealth safe until it's over?!

Do you mean physical cash was in short supply @dicker

I recall seeing images of queues at ATMs...could the UK go full Greek?

I remember being back on leave in SE Asia and seeing people on TV queuing to try to get cash out of the collapsed northern rock. 

Central bankers are politicians disguised as economists or bankers. They’re either incompetent or liars. So, either way, you’re never going to get a valid answer.” - Peter Schiff

Sound money is not a guarantee of a free society, but a free society is impossible without sound money. We are currently a society enslaved by debt. My favourite chat up line - J'adorerais te mettre dans la pipe.
 
If you are a new member and want to know why we stack PMs look at this link https://www.thesilverforum.com/topic/56131-videos-of-significance/#comment-381454
 
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1 hour ago, kimchi said:

I absolutely don't think that will be an option 'next time' and a LOT of the 'comfortable middle class' around here will have a very big wake up call...

This is when the 'Great Reset' will happen; Electronic Central Banking Social Credit System (On demand fiat through a iphone - like a banking app). The elite have it all ready in place through the Bail-In papers (BoE & ECB).

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44 minutes ago, scotwasp said:

I know this is strange, but 2021 Audi A8’s are currently back at £30k off list, also, incredibly, with 2nd hand cars up 30%ish  in value many new electric cars such as the Mercedes people carriers are being discretely discounted!  Meanwhile rolls Royce and other high premium brands are still up massively, it seams the softening is happening in the mid range assets first. 

There are a number of very strange price movements going on in a number of non PM markets.  I noticed a lot of this kind of stuff happening in the couple of years before the 2008 crash.  
I think we may well be about to see a very significant economic shift take place in a number of markets and as someone who has navigated them before, I suspect most people won’t believe just how destabilising they can and will be.

 

 

A work colleague ordered a BMW about 6 months ago with a great discount. The delivery date has been pushed back twice now. In the motoring industry the order books are full but just can't deliver. It is getting better now as supply chain seems to have sorted itself out and there is less disruption but there is a huge backlog. Having a huge discount maybe something to do with cash flow (not sure). 

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I bought a brand new top spec ford transit in 2018 for £19500 + VAT. 

A 2018 same spec model with around 30,000 miles on currently sells for around £20000 + VAT.

I feel at the moment there is almost a culture of people throwing money at things and pushing up the prices. I see it with everything. Property, Watches, Gold (proof), Some cars, even particular shares and crypto have boomed due to people throwing money at it - the list goes on. The money being thrown at these items is often down to cheap debt.

The rug can and will be pulled out and being liquid in these times is going to be useful for survival but also useful for jumping on the opportunities dire times presents.

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4 minutes ago, AuricGoldfinger said:

I bought a brand new top spec ford transit in 2018 for £19500 + VAT. 

A 2018 same spec model with around 30,000 miles on currently sells for around £20000 + VAT.

 

Similar story for a Transporter. Put a deposit in late summer and delivery taken this month. Not really interested in selling but could take a 4 maybe 5k profit now

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Same deal re new and used cars in Aust....hurry and wait for a new one or pony up an extra 25% than 12 months ago for a decent hand car.

Last time we had a recession in Aust, it was proceeded by the 1987 stock market crash & the property bubble which was spiked by our central bank with 20% interest rates, all of which saw the economy fall into a hole buy 1990/91 and unemployment at circa 11%....It took until 1996 to digest all that and get back to some level of economic prosperity.  Since this time, Govt's including our have racked up the credit card spendathon to avoid recessions...anything called a recession since has been purely technical and a pale imitation of what the 1990/91 recession was like.

To comment on the original question, find / get to know some local dealers in your neck of woods and build a relationship with them.....might help when it comes time to sell your stack.

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On 24/12/2021 at 21:41, Bigmarc said:

A work colleague ordered a BMW about 6 months ago with a great discount. The delivery date has been pushed back twice now. In the motoring industry the order books are full but just can't deliver. It is getting better now as supply chain seems to have sorted itself out and there is less disruption but there is a huge backlog. Having a huge discount maybe something to do with cash flow (not sure). 

Picking up on cars, I’m told one of the main impacts on supply chains was the shortage of “chips”, the lack of microchips has been a knock to the supply chain since Covid issues began.

Trying not to derail the original question I’ve no experience of liquidating physical assets in a crash but paper assets can be very traumatic, particularly for those in need of funds. Virtually everything, goes down in paper assets, even quality companies, as forced liquidity creates pressure on all paper assets. This is one of the reasons I sought to diversify into physical assets.

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9 hours ago, ZigZag said:

I’m told one of the main impacts on supply chains was the shortage of “chips”, the lack of microchips has been a knock to the supply chain since Covid issues began

Yes the supply chain has been all over the place since COVID arrived. Fuel pumps was a big one, there was a part that went into the pumps that caused big disruptions down the line (I think they were made in Indonesia). The problem with microchips was the tech was old technology that has been used for years. Where the suppliers of these chips have moved on, the motoring industry hasn't (cheaper end of the market). Apparently it's quite a big thing to redesign our current availability of cars to accommodate the new chips. 

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ahhh good old inflation is back ..  they will blame anything other than printing another 30 per cent more money for nothing... add in 'onerous new regs' for anything new, under the net zero plan and its set up perfectly for a 70 's style environment.     I reckon you will able to sell gold easily in the upcoming shiteshow.    the bigger question is what will you sell it for..  maybe silver

Edited by CANV
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