gold, page-2816

As you have not indicated if your PM in this case Silver coins is a small portion of your excess Cash, I will have to assume it is. You don't have to divulge that if you don't want to but surely Gold will have a more solid store of value than AUDUSD you keep in the bank?

Now that you and Goldbear brought gold = money, I had a think about what the profound statement relates to and it draws a blank. Maybe I was brought up with Fiat CCy hence gold as money is a strange concept as traditionally I see it as a conspicuous show of wealth. They assigned "Precious" to the metal perceiving it to be rare therefore valuable. It is finite and expensive to extract. http://www.dictionary.com/browse/precious

Just like fiat ccy itself, it suffers from fluctuations as you kindly put it. Fluctuations = supply/demand. It has cycles just like any other commodity, stocks, paintings, collector cars etc. Hell Fiat CCy itself has cycles too. Look at the USD strength regardless what is driving it up and that goes for AUDUSD. Currently it (AUD) is being sold off through fundamentals and S/D cycles. So what is the difference between gold=money and gold=commodity?

"Gold is likely to perform well when confidence in paper currencies is waning, when there is a lack of confidence in Wall Street-type trading instruments."

That is a broad statement so which ccy are you referring to? If that is a direct reference to AUDUSD then yes gold is performing as paper AUDUSD drops, reflected in XAUAUD.

'Wall st type trading instruments' I assume you are referring to sp500/SJ30 stocks makeup? Is XAUUSD really heading up in the same correlated manner than the US stock indices? Not so long ago, pre-GFC, the phrase was gold is an inflation hedge. Every asset class were hunky dory inflating and so was gold as interest rate was a brute tool to hammer down inflation.

We are no in a low inflation globally so the next excuse is that debasing USD will trigger hyper inflation? Didn't happen so goldbugs are looking for another credible excuse. Let me guess, ok, Market crash. Yeah that is right, it can't go on with zombie like growth forever. Hello, Feds up rates. There goes the trigger for more Schiff like ALERTS that he didn't think the Feds could even raise rates in December and that would crush the weak economic growth. Hello the Feds raised rates anyway and now the so called burger flippers is going to be the largest employment group...

Ok so market will crash this year like GFC and there is only one asset class that offer safety? So the jobless will be queuing outside Centerlink when that happens as the companies cut cost and people lose their jobs en mass, property price collapse, margin calls in all asset class but Gold will be in high demand because wealth will be seeking this form of protection? And what wealth are the majority of punters seeking to protect?

As an FX wannabe trader, I don't give 2 hots if there is a market crash. In fact I welcome massive turmoil because volatility is what I am after. There is money to be made when people everywhere is losing their shirts betting on property, stocks, collector cars, diamonds and whatever with price inflation unfortunately if I look at the morbid side of the trading industry!

However you know that in reality when there is turmoil, our Govt will be forced to take extreme measures. I don't mean printing money! You can look to the US/Russia/China for what is to come. Saudi Arabia is only collateral damage. Ukraine and Spratly Is are the 2 hot spots that can potentially make us choose between US and China. I am not putting on any conspiracy hat but some say WAR is a very lucrative and profitable exercise. Those here into conspiracy should understand fully what I am on about. In today's wired instant finger tip information age, you'll be amased what google can lead one to read!