The average American has their wedding ring/engagement ring.
Well, I guess I’m not average.
Once upon a time everyone in Holland owned TULIP BULBs.
Call it the 'Weimar Hangover'!
6000 bucks is like 4 ozs. Not a horde at all
6000 bucks is like 4 ozs. Not a horde at all
Once upon a time everyone in Holland owned TULIP BULBs.
Probably institutional memory from super-hyper inflation after WWII.
Interestingly, I was searching last night for reputable sources to buy Gold/silver coins and bullion. I was thinking of the American Eagle series and the Englehard blanks and ingots.
To explain to those unfamiliar with the history, because of World War I, the Germans replaced their gold-backed currency with a fiat currency, the Papiermark. After the war, in the ensuing International depression, caused by staggering reparations, the Papiermark experienced hyperinflation.
There was a two-stage method used to restore their currency.
First, a gold-backed currency was introduced, called the Rentenmark, which was just for bank and government use. Because it was gold-backed, it was entirely stable, so with the equivalent of pennies, it could overcome many billions of Papiermark debt.
This stabilized the situation in a hurry. But then a new “street” currency, also backed with gold, the Reichsmark, was introduced. It was also very stable, and was able to completely replace the Papiermark, and was so effective as a currency that even the Nazis did not mess with it, and it remained through World War II.
The Nazis did try other bad economic stunts, like fixing prices and wages, which created an enormous black market.
Only in 1948 was it replaced with the Deutschmark. After all the chaos and destruction, the Reichsmark was exchanged for the Deutschmark at a mere 10 to 1 ratio, an exchange rate ordered by the western occupation forces.
This persuaded the German people that gold is essential to having a stable economy, and for personal protection from government and war. The German government, however, afraid of Soviet conquest and the theft of their gold, stored much of it in Britain and the US.
After the end of the Cold War, this was a policy that needs rethinking.
I always want to ask people who invest in the precious metal portfolios, do you think you will ever see your gold/silver/platinum if the world/US economy actually tank. The answer is no. The government will get it. If you don’t have possession of your asset you don’t have it. Better off investing in survival staples and ammo.
A friend of mine has piles of diamonds that were pried from rings so the rings can be melted.
That is what I have! It is nice to know I’m average.
My brother has hundreds of thousands worth of physical gold that he bought when it was cheap. He bought junk jewelry, coins and bars.
I have read that only 2% of Americans are tuned into gold coins and silver coins as being serious items of real worth. The average American is thoroughly hypnotized into believing that credit cards and blips on hard drives (they probably are oblivious to that too) are what money is
The real mind blowing activity these days is that private bank called the Federal Reserve buying up a trillion of 0Bama-debt each year. Taking the place of China which has opted out of the charade
Gold does nothing but sit there. It does not produce anything (other than a small amount which is used in electronics). It does not pay dividends. It does not increase in quantity as it sits in a vault. Instead it either costs money to store or is at risk of being stolen from your house. It is a horrible investment.
But the Germans are arguing that even as bad as it is, it is still better than cash, real estate, bank deposits, corporate bonds, government bonds or stocks and that shows just how bad they think the current situation is. And I think that they are right.
I wouldn’t call 6000 Euros “hoarding.”
my my...somebody’s getting teed off aren’t they?