Maybe this thread is the place to think about the following.
How about this scenario if the games up?
Let's say gold does go to some high dollar figure - any figure will do for an example - say $10k per oz. and silver also high dollar figure.
In this scenario these high prices are due to a. fear of fiat collapse and b. people raising pm's and pm stocks as a larger part of their investments.
Let's now say that we have gone to the local shop and purchased a crystal ball that actually works - and our ball tells us that gold will reach $10k - top out and then rapidly fall back to a few thou. You have a swag of gold mining shares that you bought for under 10c and they are now $5 - but will fall heavily when pm's come off - ie. the bubble is about to burst big time. Also factor in that currency is about to either collapse or at least be reinvented - as in new dollars or new peso's etc. - as has happened many times in the past.
What would you do? - if indeed the currencies are in disarray and pm's are about to top and go into disastrous decline - where would you put your wealth?
Lets assume that currency stood up for a couple of weeks after you sold out of your pm's (assuming you sold out like your crystal ball was possibly suggesting) - so you have a little time to redistribute the wealth -
but you only know this
1. pm's are at a top 2. All currencies are dodgy 3. Public companies sp is likely to fall dramatically (they would have probably fell hard at this point anyway). 4. Property is costly as people have already moved cash out of the market - those who didn't want to be in gold shares anyway.
Well, where to from here - what do you do with those rivers of cash you have generated from holding gold and a massive share portfolio in pm shares?
This is well worth thinking about - because if it doesn't happen this time it will one day. It has already happened in many countries in the past - but mostly people have had pm's to turn to - it may well be different this time.
