Jump to content

Theme© by Fisana
 

Photo

The demise of the US dollar.


  • Please log in to reply
281 replies to this topic

#81 Lumberjack

Lumberjack

    Registered User

  • Members
  • PipPipPip
  • 53 posts

Posted 13 February 2003 - 11:12 PM

Buffett bought at about $5.20, and has held through some fairly volatile swings,I'm sure he wont sell at a loss, read some of Ted Butlers writings on silver and figure he's right about half of it. There is very very little silver left in the world relative to demand and the deficit in supply.
  • 0

#82 pulse

pulse

    Registered User

  • Members
  • PipPipPip
  • 55 posts

Posted 13 February 2003 - 11:12 PM

Palladium is also an interesting metal, coming initially from a geology back ground, it is less abundant then Gold, and Platinum...cause for purchase there.

Anyway, it also has alot less uses then gold and will take sometime to replace gold for electronic purposes etc.

Long-term (not 1-3yrs, 7+yrs)
  • 0

#83 Lumberjack

Lumberjack

    Registered User

  • Members
  • PipPipPip
  • 53 posts

Posted 13 February 2003 - 11:22 PM

I think all the metals are long term purchases here. Investments, not trading plays. I don't expect the metals to top,or the stocks to bottom in dividend yield terms,for a decade or more. you can try to time the wild swings I'm sure we'll see or just forget you own it until we reach a 10% dividend yield on the S&P.
  • 0

#84 SmallMind

SmallMind

    Banned

  • Banned
  • PipPipPip
  • 387 posts

Posted 13 February 2003 - 11:27 PM

bush is really hard to believe or I would have jumped into platinum, if he really moves fuel cells then platinum can jump a lot. Right now it seems just speculation and thats all since even the traders don't believe bush will do anything other than talk. But if I had got in last year I would not sell it.
  • 0

#85 pulse

pulse

    Registered User

  • Members
  • PipPipPip
  • 55 posts

Posted 13 February 2003 - 11:31 PM

This is certainly true,

Platinum and Palladium are both metals for the future, this due to their inherent superiour nature to gold. Being rare cant be bad for the price either!
  • 0

#86 Lumberjack

Lumberjack

    Registered User

  • Members
  • PipPipPip
  • 53 posts

Posted 13 February 2003 - 11:32 PM

I think platinum is overpriced,I believe it's actually more common than gold. Silver is finding many uses in alternative energy. Superconductive distribution and batteries for everything from cruise missiles to solar power systems,solar panels use large amounts of silver,and electronics require silver to work,with the only alternatives being gold or platinum in some cases.
  • 0

#87 SmallMind

SmallMind

    Banned

  • Banned
  • PipPipPip
  • 387 posts

Posted 13 February 2003 - 11:36 PM

Dow jones on CNBC says China was big buyers of Euro and implying that Japan is not doing it just to help the dollar although they know the Euro is a much better investment. Seems other governments are also Euro buyers and only not to piss off the US is keeping everyone from totally abandoning it.

Silver is always a good buy, except if you take psychical delivery there is a lot of it compared to Gold or Platinum.
  • 0

#88 Lumberjack

Lumberjack

    Registered User

  • Members
  • PipPipPip
  • 53 posts

Posted 13 February 2003 - 11:40 PM

Smallmind,

Above ground stockpiles of gold= 4 billion ounces,give or take.
Above ground stockpiles of silver=less than 1 billion ounces.

Oh, you meant it's hard to store a lot of it huh? I don't have enough money to make that a problem.....I don't even need the big safety deposit box:(
  • 0

#89 pulse

pulse

    Registered User

  • Members
  • PipPipPip
  • 55 posts

Posted 13 February 2003 - 11:54 PM

Lumberjack,

generally youve got good stuff to say, but thinking gold is more abundant than silver, sorry, you are just wrong!

there is so much silver that it reflects in its price.

Using your methods that silver is useful for everything gold is, then if it were to be a more scarce commodity, would this not be reflected in the gold price.

I would lke to know your sources as I, from a GEOLOGY back ground initially, have studied these precious metals for a number of years at exploration sites, mines sites, and production sites.

Where there is gold, there is generally silver (through hydrothermal and epethermal deposits). This is generally also associated with copper. In fact, it is so common, that 9, and 18 ct gold, has silver and copper in it! In addition to this, they occur together as the three metals precipitate out at arounf the same temperature.ie. through natural processes, the Au, Ag and Cu become solid at a similar temperature.

Just to add more salt, thegold to silver ratio in the ground can be as high as 400 X. Example, a field study done through my undergrade degree years ago shows drill results of up to 200grm per tonne of silver to 7 grm per tonne gold, this is not an unusual result for many exploration companies.

for a common example, check this link and study the diagrams and look for Ag.

http://www.goldencro...m.au/Wagga.html

showing essays of over 1000g/t of silver to 2 g/t gold!
  • 0

#90 SmallMind

SmallMind

    Banned

  • Banned
  • PipPipPip
  • 387 posts

Posted 14 February 2003 - 12:03 AM

Originally posted by Lumberjack
Above ground stockpiles of gold= 4 billion ounces,give or take.
Above ground stockpiles of silver=less than 1 billion ounces.



pulse read it again.



Well I mean since silver cost like $10 an ounce and gold $350 and platinum like $650, it is much easier to store the later. Heck my wife would really go for storing it on her but she wont like the silver.

Before the market meltdown took all of us working stiffs off out hides I would have gone for diamonds :> But I might get a few silver biscuits just to fool the wife and tell her its platinum.

Then there is also white gold which looks very similar.


http://money.cnn.com...ommodities.html
  • 0

#91 Lumberjack

Lumberjack

    Registered User

  • Members
  • PipPipPip
  • 53 posts

Posted 14 February 2003 - 12:07 AM

Of course you are right,there is far more silver in the ground than gold. However gold,once mined,pretty much stays with us for eternity,while silver is used up and lost in most of its applications. Gold is held in large stockpiles around the world,the worlds silver stockpiles have been largely depleted by a 100 million ounce a year supply deficit after all the reclamation efforts. The US silver stockpile is completely gone,it was the largest pile of silver in human history. Also most silver production is as a byproduct of other mining activity,such as copper,zinc and gold. Current prices have driven most primary silver producers into bankruptcy.The price is not reflecting any of this,primarily because the paper silver market dwarfes the actual bullion market. you can verify all of this by looking at figures from the silver users association,the silver institute,or basically anyone who's looked into it at all. Warren Buffett owns probably one third of all the silver above ground at this time,not counting jewelry of course,which would only become available to industry at a much higher price.
  • 0

#92 pulse

pulse

    Registered User

  • Members
  • PipPipPip
  • 55 posts

Posted 14 February 2003 - 12:09 AM

far enough, I mis-read the your post a little, and obviously interpreted it.

damn, but I had such a good article!!!:rolleyes:
  • 0

#93 pulse

pulse

    Registered User

  • Members
  • PipPipPip
  • 55 posts

Posted 14 February 2003 - 12:15 AM

small mind,

diamonds are and always will be an exceptional buy. It is one of the rarest commodities in the world to find a perfect diamond. Buy one of these, and you will never lose!!

But dont buy the hype with diamonds, they are, particularly yellow, pink and chanmpagne diamonds, very common. A clear, colourless diamond is rare, and will keep value for years. Cut it by a precision craftsperson and the value will increase 4X, fine russian cuts, tiffany cuts all that crap, plus,

The women will love you cause they can flash it around and will look devistating in a beutiful diamond earing set, etc....just insure it first!

They are a practicle investment!!!
  • 0

#94 Gandu

Gandu

    Registered User

  • Members
  • PipPipPip
  • 113 posts

Posted 17 February 2003 - 07:03 PM

Iraq Nets Handsome Profit
By Dumping Dollar For Euro
By Faisal Islam
Economics Correspondent
The Observer - UK
2-16-3

A bizarre political statement by Saddam Hussein has earned Iraq a windfall of hundreds of million of euros. In October 2000 Iraq insisted on dumping the US dollar - 'the currency of the enemy' - for the more multilateral euro.

The changeover was announced on almost exactly the same day that the euro reached its lowest ebb, buying just $0.82, and the G7 Finance Ministers were forced to bail out the currency. On Friday the euro had reached $1.08, up 30 per cent from that time.

Almost all of Iraq's oil exports under the United Nations oil-for-food programme have been paid in euros since 2001. Around 26 billion euros (?17.4bn) has been paid for 3.3 billion barrels of oil into an escrow account in New York.

The Iraqi account, held at BNP Paribas, has also been earning a higher rate of interest in euros than it would have in dollars.

At the time of the change the UN issued a report saying that the move could cost Iraq up to ?270 million. Independent experts questioned the value of buying into a plummeting currency.

'It was seen as economically bad because the entire global oil trade is conducted in dollars,' says Fadhil Chalabi, executive director of the Centre for Global Energy Studies.

The marked appreciation of the euro, higher interest rates, and the ability to pay mainly European suppliers in euros is believed to have made hundreds of millions for the Iraqi oil-for-food programme.

UN officials insist that this benefit helps to pay for humanitarian aid, war reparations, and the cost of weapons inspectors.

Guardian Unlimited
  • 0

#95 Gandu

Gandu

    Registered User

  • Members
  • PipPipPip
  • 113 posts

Posted 21 February 2003 - 12:27 AM

Excellent article by C?il?n Nunan: "Oil, Currency and the War on Iraq".

It will not come as news to anyone that the US dominates the world economically and militarily. But the exact mechanisms by which American hegemony has been established and maintained are perhaps less well understood than they might be. One tool used to great effect has been the dollar, but its efficacy has recently been under threat since Europe introduced the euro.




So far only one OPEC country has dared switch to the euro: Iraq, in November 2000. There is little doubt that this was a deliberate attempt by Saddam to strike back at the US, but in economic terms it has also turned out to have been a huge success: at the time of Iraq's conversion the euro was worth around 83 US cents but it is now worth over $1.05. There may however be other consequences to this decision.

One other OPEC country has been talking publicly about possible conversion to the euro since 1999: Iran, a country which has since been included in the George W. Bush
  • 0

#96 puzzledude

puzzledude

    Registered User

  • Members
  • PipPipPip
  • 43 posts

Posted 21 February 2003 - 11:08 AM

What a thread!

Learnt more from this than any other here so far.
made clear a few things I poorly understood.

Thnx Lumberjack.
  • 0

#97 Gandu

Gandu

    Registered User

  • Members
  • PipPipPip
  • 113 posts

Posted 21 February 2003 - 07:09 PM

It seems every tom dick and cheney is in ths mess.



  • 0

#98 gonzo

gonzo

    Registered User

  • Members
  • PipPipPip
  • 14844 posts

Posted 21 February 2003 - 07:30 PM

I am enjoying the info here as well, The US debt is unbelievable. Even the most optimistic person has to admit there is a limit to everything. Someday things will come crashing down and we strart all over.

I got $12,000 left in mutual funds and when the Dow reaches 8500 points, I am taking my money out. I have lost enough and will invest my money in my business or I will only stick with simple savings investment accounts which are around 2.5 -3%.
  • 0

#99 uglybastard

uglybastard

    Registered User

  • Members
  • PipPipPip
  • 605 posts

Posted 21 February 2003 - 07:35 PM

Steer clear of gold. It's due for another huge drop.

If you need a metal in your portfolio, try platinum. Platinum is needed as a catalist in fuel cells.

No platinum, no hydrogen cars.
  • 0

#100 Lumberjack

Lumberjack

    Registered User

  • Members
  • PipPipPip
  • 53 posts

Posted 21 February 2003 - 07:37 PM

I got $12,000 left in mutual funds and when the Dow reaches 8500 points, I am taking my money out. I have lost enough and will invest my money in my business or I will only stick with simple savings investment accounts which are around 2.5 -3%.

You may have a very long wait. It's possible though,personally I'd pick an up day and get out.
  • 0




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

Copyright © 2016 Pravda.Ru