50 years of suppressing silver (and gold), page-16

rowingboat

Thanks for your views.

I agree that staying flexible will be the key to maximising returns over time by switching asset classes.

There seem to be a lot of top hedge fund managers investing in gold (Dalio, Paulson, Soros, Einhorn) so I will keep an eye out for what they do.

Perhaps at some stage I will sell down half my gold shares in anticipation of a major fall, with the intent of buying more cheaply later (or at least avoiding a possible wipeout). I am not sure when to do this or if I have the skill to do it successfully.

I found Prechter's interview on Newshour (19 June 2010) interesting in that he sees the market bottoming out a lot more slowly than what happened in the 1930s, he sees the bottom as occurring in 2016. Perhaps the more gradual fall in share prices (with intermittent rallies) will mean we do not get another fall in the price of gold to the same extent (if at all) as occurred in 2008 (in USD terms), and perhaps gold equities will do OK and not follow the ctindale scenario. I do not act on Prechter's views, it is just interesting background noise

http://www.financialsense.com/fsn/main.php

I came across an interesting interview where another successful investor guru who thinks that gold is useful in the coming depression:

http://pragcap.com/felix-zulauf

"Excellent thoughts here from Felix Zulauf. Like Ray Dalio of Bridgewater Zulauf believes the world is on the verge of a massive deflationary debacle. He believes central banks will ultimately intervene and destroy fiat currencies as we know them. He is very bearish on the global economy and very bullish on gold prices. See here for the full interview.
Source: King World News "

One day I hope to make some sense of it all. I have yet to find a clear and simple (and for me to understand matters it needs to be simple) explanation of how the derivatives markets will work to destroy the financial system and the actual sums involved. Martin Hutchinson (PrudentBear blog) a former bankster does not think the potential cost from a derivatives market failure will be anything like the massive $700 to 1000 trillion that is sometimes mentioned for the total value of these contracts.

loki