Hyperinflation will drive gold to unthinkable heights

gold switzerland ^ | 12/31/2010 | Egon von Greyerz

[dollarbull]

We now live in a world where governments print worthless pieces of paper to buy other worthless pieces of paper that combined with worthless derivatives, finance assets whose values are totally dependent on all these worthless debt instruments. Thus most of these assets are also worth-less.

[dollarbull]

As gold closes out its 10th winning year in a row, pummeling the stock market yet again, and causing those that said "stocks always beat gold in the long run" to review their definition of "long run", one must ask the $64,000 question yet again:

Who said "why are goldbugs so bad at math"? What is he saying NOW?

[coloradan]

http://www.freerepublic.com/focus/f-news/2191442/posts

[muawiyah]

Hmm, and where is your gold located?

[Moonman62]

We now live in a world where governments print worthless pieces of paper...

If anybody wants to send their worthless government printed money to me I'll pay for shipping.

[dollarbull]

Offshore (e.g. goldmoney). US will confiscate again when they get desperate.

[cc2k]

Posted yesterday as well.

HYPERINFLATION WILL DRIVE GOLD TO UNTHINKABLE HEIGHTS

Just letting you know, you might be interested in the discussion there.

[dollarbull]

If anybody wants to send their worthless government printed money to me I'll pay for shipping.

Government toilet paper is increasingly worthless in terms of food, energy etc. If you store your wealth in fiat money you will see your purchasing power and your standard of living melt like an ice cube in the coming years.

[Popman]

I have my money in coal and natural gas. Much cheaper than gold and abundant.

Since we as a country have a serious psychosis on drilling for our own oil, coal will always be needed to generate electricity

Gold is a suckers bet unless you get in very earlier and get real gold not gold certificates

[Daisyjane69]

And while gold was up about 29% (impressive) this year, silver was up 84% (okay, 83.9%) for the same time period.

This is while my bank was paying me 1.09% on a CD.

[Ditter]

Gold? I don’t have any gold! Why would you ask?

[dollarbull]

I have my money in coal and natural gas. Much cheaper than gold and abundant.

Where does it say "put 100% of your wealth in gold"? I also have energy and other investments. Gold is part of the cash allocation in the portfolio, it's not really an investment. It replaces bonds/cash/etc.

Gold is a suckers bet unless you get in very earlier and get real gold not gold certificates

Fiat money is the sucker's bet. It has a 100% failure rate and never lasts longer than 1-2 generations. Gold has a 100% success rate of preserving wealth over long periods. Avoid it at your peril.

[muawiyah]

Oh, I dunno ~ maybe you have some at home.

Yeah, that's it ~ you have it at home.

You should let me see it.

[Popman]

Hyperinflation is a very unlikely situation. Not saying it will not happen, but highly unlikely.

Inflation is NOT the same thing as Hyperinflation.

[dollarbull]

And while gold was up about 29% (impressive) this year, silver was up 84% (okay, 83.9%) for the same time period.

The government-bankster complex is losing control of their silver suppression scheme. More silver fireworks are in the cards for the next few years.

[blackie]

In a secret place, easy to access...

[albie]

“I have my money in coal and natural gas”.

...any thought on why GAZ (natural gas) is so low?

[Ditter]

I buried it in my pitt bulls dog run. Snowflake and Killer haven't let me see it for quite a while now. Are you good with dogs?

[ak267]

When SNL gives a backhanded “he was right on gold” kudos to Gleen Beck, you know it’s gonna be interesting times.

[dollarbull]

Inflation is NOT the same thing as Hyperinflation.

You are correct. Hyperinflation is not likely, and it is different than inflation. Hyperinflation can be defined as the loss of faith in the purchasing power of paper money - people panic and trade money for ANYTHING of value, whether they need it or not. Recent example is Zimbabwe, classic example is Weimar Germany.

The Fed has alread printed up enough money to CAUSE hyperinflation, but that doesn't meat it will happen. High inflation rates, like in the 1970s, and a re-birth / re-issue of gov't fiat toilet paper (e.g. the post 1971 dollar) are both inevitable. That means gold will hit the #s described in this article. Hyperinflation would mean the gold price in terms of dollars is meaningless/infinite.

Bottom line - you'll protect your wealth in gold while the dollar collapses. That is what you should be focused on.

[ak267]

In a secret place, easy to access...

++++++++++++++++++++++++++++

Arrrrghhhh me maties, puts that buried treasure here and lets starts a diggin.

Yo ho ho and a bottle of rum!!!!