Comments on: Dinosaur Economists and their Paper Currency http://dailyreckoning.com/dinosaur-economists-and-their-paper-currency/ Covering the economy, global markets and world politics. Sun, 22 Nov 2009 00:00:42 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: charlie http://dailyreckoning.com/dinosaur-economists-and-their-paper-currency/#comment-4272 charlie Fri, 03 Apr 2009 16:03:56 +0000 http://dailyreckoning.com/?p=14358#comment-4272 <I>good points, but if equities rise and fall with gold, why arent they doing that now?</I> The dollar hasn't crashed. What I said is that if it does, equities along with gold will be cheap in USD to overseas investors. What you'll see is money moving out of low yielding USD debt and into other investments. <I>Why don't they currently move in sync?</I> Because precious metals along with T-Bills is currently considered a safe investment. When risk appetite goes up, investors move out of T-Bills and PM's and buy equities. The converse is also true. good points, but if equities rise and fall with gold, why arent they doing that now?

The dollar hasn’t crashed. What I said is that if it does, equities along with gold will be cheap in USD to overseas investors. What you’ll see is money moving out of low yielding USD debt and into other investments.

Why don’t they currently move in sync?

Because precious metals along with T-Bills is currently considered a safe investment. When risk appetite goes up, investors move out of T-Bills and PM’s and buy equities. The converse is also true.

]]> By: rob http://dailyreckoning.com/dinosaur-economists-and-their-paper-currency/#comment-4266 rob Fri, 03 Apr 2009 14:57:48 +0000 http://dailyreckoning.com/?p=14358#comment-4266 charlie - good points, but if equities rise and fall with gold, why arent they doing that now? charlie -

good points, but if equities rise and fall with gold, why arent they doing that now?

]]> By: charlie http://dailyreckoning.com/dinosaur-economists-and-their-paper-currency/#comment-4249 charlie Fri, 03 Apr 2009 12:05:44 +0000 http://dailyreckoning.com/?p=14358#comment-4249 <I>Why is silver disproportionally cheap compared to gold anyway?</I> Two reasons. Contrary to what's stated above, there is a lot more silver than gold. Both above ground and below ground. While I agree there's a disconnect between price and availability between the two precious metals, there's not more gold than silver. Second. Gold is a better metal. It looks better and has unique properties that other metals don't have like a very high coefficient of reflectivity. I'm not convinced that precious metals are a good investment. I agree that if the dollar tanks, the value of metals will go up in USD, but so will everything else. Why will an ounce of gold be worth more than say 20 shares of McDonalds? After all if the dollar tanks, McDonalds overseas profits will boom. Having said that, I do own some CEF. not because I think it's going to zoom. Just because I think it's a good idea to have a diversified portfolio. Why is silver disproportionally cheap compared to gold anyway?

Two reasons. Contrary to what’s stated above, there is a lot more silver than gold. Both above ground and below ground. While I agree there’s a disconnect between price and availability between the two precious metals, there’s not more gold than silver.

Second. Gold is a better metal. It looks better and has unique properties that other metals don’t have like a very high coefficient of reflectivity.

I’m not convinced that precious metals are a good investment. I agree that if the dollar tanks, the value of metals will go up in USD, but so will everything else. Why will an ounce of gold be worth more than say 20 shares of McDonalds? After all if the dollar tanks, McDonalds overseas profits will boom.

Having said that, I do own some CEF. not because I think it’s going to zoom. Just because I think it’s a good idea to have a diversified portfolio.

]]> By: bpg131313 http://dailyreckoning.com/dinosaur-economists-and-their-paper-currency/#comment-4184 bpg131313 Thu, 02 Apr 2009 23:52:23 +0000 http://dailyreckoning.com/?p=14358#comment-4184 I can't afford gold, but I do have lots of silver. Why is silver disproportionally cheap compared to gold anyway? I can’t afford gold, but I do have lots of silver.

Why is silver disproportionally cheap compared to gold anyway?

]]> By: airbil http://dailyreckoning.com/dinosaur-economists-and-their-paper-currency/#comment-4172 airbil Thu, 02 Apr 2009 22:08:03 +0000 http://dailyreckoning.com/?p=14358#comment-4172 TMG must be softening, or getting tired. Synonyms aside, calling them "moron/s" only three times left innumerable opportunities on the table. That said, maybe he was saving them all up to use for Obama decaring today the "...turning point in our pursuit of global economic recovery." But he cautioned, "There are no guarantees." That's what Bush meant to say after declaring "mission accomplished" I think. I guess the promise of a free lunch wins in todaze world. TMG must be softening, or getting tired.
Synonyms aside, calling them “moron/s” only three times left innumerable opportunities on the table.
That said, maybe he was saving them all up to use for Obama decaring today the “…turning point in our pursuit of global economic recovery.” But he cautioned, “There are no guarantees.”
That’s what Bush meant to say after declaring “mission accomplished” I think.
I guess the promise of a free lunch wins in todaze world.

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