got $100k cash in bank, what should i do? buy gold? buy euros? or what..

fx57 said:
My guess is gold will peak at $5000/oz, the FED will crank up interest rates to 20%, gold will settle down to $2000/oz for a little while, then rise again into the stratosphere as the dollar collapses.

http://www.bullandbearwise.com/GoldOverlayChart.asp

The difference between now and 1980 is that back then interest rates were already high when gold spiked. Now they are at 4% and the FED will be hesitant to crank rates up since that will kill the stock market and cause massive foreclosures on ARM'd homeowners.

With the national debt as high as it is now how will the govt pay for the increase in interest on the debt? Higher taxes (unlikely) or print more money (likely).

All the owners of dollars overseas are going to want to get rid of them once they see their value plummeting faster than the interest they earn. When nobody wants to buy treasury notes any more the national debt will move away from private hands into the FED causing massive expansion of the money supply.

I'm interested to see how the FED will get out of this one.

I just hope people have enough sense after the dollar collapses to make the new currency unit be a unit of gold weight instead of a fiat Amero.
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Bit extreme with the gold prices there, we'd had to hit huge inflation rates. It might come as a surprise to some of you, but inflation wasn't a cause of the Depression, it was in fact massive deflation.

There's something called refinancing. You create new debts to pay off old debts, there's a balancing effect there. True you're stuck in the same place you were before, but at least you paid off the matured bonds and securities.
 
Tom228 said:
Bit extreme with the gold prices there, we'd had to hit huge inflation rates.
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The US$ will eventually become worthless like every other money substitute in history. Because of technology there is now a whole new level of currency operational that allows money to substitute in daily transactions. The age of money substitutes is coming to an end and the US$, as it collapses, may drag all of the other currencies into the black hole.
 
I'll buy used gold jewelry at 95% of melt for you if you want me to. It's what I do. I also buy numismatics.
 
diesirae said:
Buy a house. It will provide a constant, guaranteed source of income, and is one of the best investments you can make.

Gold is highly conservative, and functions as an effective store of value. If you're looking to grow your wealth, then investment is a better method.
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IMHO that is a monumentally BAD idea.
 
buy some rural property and put a house on it or hire someone to build you an underground house for cheapp, but very economical.....stays warm in winter, cool in summer (go to undergroundhousing.com)

put some in gold, silver, guns and ammo are a good store value too, if you expect an economic collapse.

I expect it sometime this decade
 
weatherbill said:
buy some rural property and put a house on it or hire someone to build you an underground house for cheapp, but very economical.....stays warm in winter, cool in summer (go to undergroundhousing.com)

put some in gold, silver, guns and ammo are a good store value too, if you expect an economic collapse.

I expect it sometime this decade
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Guns and ammo? Even if there is a recession or heaven forbid a depression, it seems unlikely that we descend into anarchy.
 
Get both gold and silver in liquidable sizes (meaning, sizes that would be easy and sensible to get rid of when bartering or some other transaction). You don't want 10kg bars of Gold basically.

You may also consider some copper. Contact eldoradogold.net for more info on your precious metals investment.

Make sure you have a good food supply on hand, something similar (but necessarily from) efoodsdirect.com

Make sure you can guarantee yourself a good water supply. Check out Berkey water filters.

Investing into a sustainable energy source, such as solar panels or wind mill, or hybrid system between the two.

Can't forget a decent stash of firearms and ammo.

Basically, don't have your money in the form of paper that could become worthless at any moment when it's fiat foundation implodes.

Not saying you should put all 100k torwards what I just said. I would consider putting at least 10-20k towards precious metals, and good 10k towards the rest.
 
If considering real estate, remember we are still coming off a hell of a run... home prices need to drop to approx 200-250 ounces gold equivelent median price to become a decent "buy" if you consider the 100 year nominal ratios. In 2007 the median home price in the US was around $300,000; even today with gold at $900 it takes over 330 ounces to buy the median house...
If you google home prices/ gold ratio you can find various sites that post the historical ratios, showing a house is a really good investment if you can get in for under 200:1.
Of course you can't live in gold, so if you need to live in the house, that would change your investment decision and volitility should be considered, as well as your investmen timeframe... There WILL be great distress opportunities in the next few years as banks need to roll over excess inventory... I think, like most things, real estate will overshoot to the low side and you may pick up something for 150:1 with gold around $1200 ounce next year... (again assuming you are investing, not living in the house), and I would try to average into gold near or below the 50 day moving average. Over a 10 or more year period you should do well in either asset if you keep the long term ratios in mind before you "diversify" the cash.

BTW, I like the references to guns and ammo,water filters, and solar, et al, as they are all cheap investments that may go up in real value DRAMATICALLY if conditions warrant...
 
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mleclerc said:
If considering real estate, remember we are still coming off a hell of a run... home prices need to drop to approx 200-250 ounces gold equivelent median price to become a decent "buy" if you consider the 100 year nominal ratios. In 2007 the median home price in the US was around $300,000; even today with gold at $900 it takes over 330 ounces to buy the median house...
If you google home prices/ gold ratio you can find various sites that post the historical ratios, showing a house is a really good investment if you can get in for under 200:1.
Of course you can't live in gold, so if you need to live in the house, that would change your investment decision and volitility should be considered, as well as your investmen timeframe... There WILL be great distress opportunities in the next few years as banks need to roll over excess inventory... I think, like most things, real estate will overshoot to the low side and you may pick up something for 150:1 with gold around $1200 ounce next year... (again assuming you are investing, not living in the house), and I would try to average into gold near or below the 50 day moving average. Over a 10 or more year period you should do well in either asset if you keep the long term ratios in mind before you "diversify" the cash.

BTW, I like the references to guns and ammo,water filters, and solar, et al, as they are all cheap investments that may go up in real value DRAMATICALLY if conditions warrant...
Click to expand...

It depends where you live, for the housing market. Some parts of the country are quite good deals, especially if you're currently renting.
 
diesirae said:
It depends where you live, for the housing market. Some parts of the country are quite good deals, especially if you're currently renting.
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Definitely... in many parts of the country, the deals are good now, but IMHO, I think the prices are going to get even better, along with a temporary dip in the fixed rate financing over the next several months...The banks will fold if they can't get enough people in to "refinance" which allows the bank to mark the underlying asset; (many now on the variable rate time bombs); to market and roll over the debt instead of it getting tied into the illiquid toxic "mark to fantasy"class.

If you have cash to put down as this poster does, and if you are renting... a very good window to get into some real estate is coming soon, as the banks will lick this poster's boots. I do think the quality of the properties will be even better in the months to come however, IMHO.
 
I'd do this

15% Private Gold
15% Private Silver
30% Swiss bank account denominated in Euros/Swiss Francs
20% buy some cheap land when the real estate market crashes
10% cash on hand
10% basic living materials
 
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buy guns, lots and lots of gun.

especially assault rifles since they might be banned in the near future.
 
I'm not a financial king, but most of these posts sounds like BIASED advice..

While I'm a Paul fan, and enjoy my foray into economic learning from the Austrian perspective, listening to these Mad Max clowns and new age gold bugs will not lead you to financial stability in my honest, but to paranoid fear!!

Guns and Ammo? lol

I hope you read through these posts and came away with the knowlege that this probably was not the best place to learn investing from...

I think Desirae (I spell that right?) was the closest to sanity from an unbiased view, but I doubt anyone who posted, included myself, would vouche for their investment advice with a partial rebate if they were wrong. (And if right might get 1% of you earnings)


With 100K, seek professional advice.

However, my one caveat with alot of professionals is their poo-poo against the commodoty markets (almost especially the metals).

One thing that is interesting though: If the environment was not unstable, i.e. consistant low infaltion or no inflation, then you wouldnt have to worry where you make your investments as much. The current environment really does cause some sort of internal psychological panick.
 
"buy guns, lots and lots of gun.

especially assault rifles since they might be banned in the near future."

Not very Ron Paul of you. Try calling them defense rifles rather than assault rifles ....gives the impression you aren't a cold blooded killer. Might want to get an ABM in case of a missile attack on your bunker. Radar? How about starting an intelligence agency?

Will the last man standing in America after this shootout please get rid of those Diebold ballot machines? Thanks
 
weatherbill said:
we're not living in your grandmas world anymore Beaver.....LOL
Click to expand...



LMFAO!!

I agree! I'm no financial genius, but when my 70 yr. old mother
approached us kids about 4 yrs. ago with concerns about her
portfolio, there were.........well, several opinions on what was the
best course of action.

Finally got her to understand all these "Grand Wizzards of Illusion"
that dug this big hole were going to be the ones to bury themselves
in it.
Don't follow them unless you want to end up with several large
stacks of worthless paper!
Convert to something tangible, useful........

Sold the big house in the city, built new energy efficient home in the
boondocks, traded the big SUV for a diesel Jetta. Went geothermal.
Got out of residential and into Ag zone, saved HUGE on prop. taxes.
Swapped the golf clubs for garden tools, learned to can.
Happy, debt free, getting excersize, and currently WAY ahead of
where she was!

Sibling went the conventional route..............forclosure with a side
order of mounting CC debt, topped with an upside down SUV loan.



.
 
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