Do we need to trade fiat for gold ASAP?

[Sovereign]

Lately i keep hearing and reading how presumably reach people are warning about an imminent market collapse.
Some have even said there is a likely date on which it will happen - i hear something about 2nd October. This all sounds like a major pile of guano to me, but i would hate to miscalculate on this...

Do you have any knowledge of what these rumors are all about?

 

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[lowtek]

History is rife with examples of economic collapse. In how many of these (during relatively modern times) has gold, or any other precious metal, been a currency between the common folk? How many people accept and/or trade gold for necessity items in the failed state of Venezuela? My PhD adviser is a Russian who was a teenager during the fall of communism. I never once heard him tell me that gold was a medium of exchange.

If you're worried about long term wealth preservation, I don't think gold is the right asset. After all, the same people who are trying to sell you on an economic collapse are ALSO, at this very moment, selling gold for fiat currency. IF they really thought that fiat would go to zero, they would not be trading any amount of gold for it. This is just basic logic.

Anybody prognosticating a date for an economic collapse is selling you something, or worse. Check your pockets.

While I believe an economic event (specifically, something on the scale or greater in magnitude to the previous housing crisis) is inevitable, I don't know when. Since I also believe these events are, to some extent, controlled... I think it will occur after the election. It could be a month, a year, or several years later - but I don't think we're on a path for ruin in the next few months.

So what is a "turned on" individual to do? If investing in gold doesn't make sense, what's the correct path?

All I know is what I'm doing.

I'm investing in assets infinitely more valuable than precious metals: my character, attitudes, and skill set.

The value of gold, silver, fiat currency, milk, etc. will fluctuate in an economic event. What will not fluctuate is the intrinsic value of being able to fulfill a market need, and the mental fortitude to persist and advance when others are retreating and cowering in fear.

Spend less time listening to doomer porn by scammers trying to take your hard earned dollars, and more time getting prepared by making yourself a man of value and unimpeachable character. Build better habits, cultivate a positive mindset, and learn more valuable skills by trading your fiat for the expertise of others.

If you think this is bullshit woo woo, and feel the need to turn money into a physical asset, I believe cash flowing real estate is your best bet. People will always need shelter, and the near inevitable drop in real estate prices is not a huge deal to a buy and hold portfolio of cash flowing real estate.

 

[Scot]

 

[Liberty T. Vance]

History is rife with examples of economic collapse. In how many of these (during relatively modern times) has gold, or any other precious metal, been a currency between the common folk? How many people accept and/or trade gold for necessity items in the failed state of Venezuela? My PhD adviser is a Russian who was a teenager during the fall of communism. I never once heard him tell me that gold was a medium of exchange.

It's happened at least one time...

Treating gold/silver like an investment has never been a smart thing to do but keeping some as insurance against the slow deterioration of the world's fiat currencies isn't such a bad idea.

 

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[Sovereign]

Thank you for the replies.
Actually i'm not worried about a full market breakdown (if it happens i can't do much about it anyway), but about devaluation of fiat. As if another big devaluation is coming i'm better off spending my cash on assets before it looses value.
I'm about to invest anyway but that 2nd October ''prophecy'' made me nervous

Any thoughts on how cryptocurrencies would fare in a potential financial crisis? I'm not big on them but their concept seems interesting.

 

[DeletedUser86]

We face an un-precedent in history. If you look at cycles there are many cycles coming to an end at the same time.

1)The 7-8 year credit cycle (even documented in the bible)-think 2000 .com bubble, crash of 2008, 2016 bond bubble?

2) The roughly 40-year currency cycle where the basis of currency changes. In 1933 FDR made a decree that all US citizens must turn in their physical gold for paper and made it illegal to own gold. The gold was then exclusively traded by the world's central banks for trade settlement. 1971 the world central banks went from a government-only gold backed currency to a US dollar backed petro-dollar. The USD is/was used as the world's reserve currency but major economies are now looking for an alternative as the US is simply printing money to cover debts. Look for the price of imports to the US to rise

3)The 80-year Kondratiev cycle covers the four seasons of generations. Each generation is about 20 years
"According to the Kondratiev Wave, these are the generations since the turn of the last century:
Born 1901 to 1924: Hero Generation
Born 1924 to 1942: Artist Generation
Born 1943 to 1960: Prophet Generation
Born 1961 to 1981: Nomad Generation"

Source: http://www.glennbeck.com/2016/08/19/our-children-will-right-this-ship-what-should-we-teach-them/?utm_source=glennbeck&utm_medium=contentcopy_link

Major wars also follow an 80-year cycle. Revolutionary War, US Civil War, WWII. WWIII seems to be falling into place if you pay attention to current events, and they already have laws set to draft every man and woman in the US. In this world war, the Nazi's (neo-cons) speak English and Christians will be the new persecuted Jews

4)Then you have the proposed 250-year revolutionary cycle that cites the American and French revolutions and before that the Protestant revolution led by Martin Luther. Today we are seeing communist instigators (Soros-backed BLM) and the fascist police state crop up around us, both serve the same end

We are in for some interesting times. Keep in mind that depressions are usually caused by a collapse in credit and bank failures. During a credit collapse CASH IS KING. The banks know this and that is why they are publishing articles about why we should get rid of cash "to fight crime and terrorism" and at the same time suggesting negative interest rates where you pay the bank a fee to hold your savings. Lots of things up in the air, just remember "the time to buy is when there's blood in the streets"

 

[Torobaro]

I think nobody knows what´s going to happen, for example two of the world´s gretaest investors ever have opposite view points (http://www.reuters.com/article/us-investments-funds-gold-idUSKCN0Y72C4).

• Soros: has recently bought gold.
• Paulson: has recently sold gold.

I personally go with what Ray Dalio says: to keep 7% of your portfolio invested in gold

 

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