The Russian Ruble was disconnected from the USD and Euro as Russia's central bank reserves have decreased from over 500 billion to just 400 million today. Big troubles ahead for the Russian citizens. The question is how much, if any, of the reserves was gold. It is interesting that a certain gold guru issued a prediction of $975 before a leveling off. The article tells the rest. The ruble fell from 32 R / 1 USD in Jan. to 48 per dollar yesterday. Next year Russia has to pay 100 billion in hard currency debts. They are hoping the exchange ratio goes more favorable by then, but have many factors that could make it much worse if they happen. https://news.yahoo.com/russia-allows-free-float-ruble-markets-100311279--finance.html
Depressed oil prices are making the situation worse for Russia, unfortunately at some point Putin, never known to be level headed, might decide all out war is what's needed. Formally going into Ukraine and other countries. A mess.
The possibility of Russia going on a slicing & dicing rampage may boost the dolla even mo homies. Like PM's really need a stronger dolla
Heck yeah they do. Unless you are selling pm, everyone should be rooting for cheaper and cheaper pm, right? If you are a stacker, why wouldn't you want a bigger stack for the same dollar?
I'd love to see gold go down to more affordable levels . Silver , how much lower can it go ? I'm buying small bit's (5-10 oz) now and would buy more if it goes to $12 .
Well Japan is starting Quantitative easing with 1.2 trillion to help their increasing problem. China might also if they find a different name for it, and Russia doesn't have funds to do it, so they float and let the citizens figure how to survive the coming winter. The younger crowd has never bought in a sub-$10 range of silver or sub $400 range for gold, and have a hard time dealing with the idea they are getting behind in their "investment" even if it is small. Hopefully this will help balance their outlook on "investment" compared to collecting /hoarding. Be careful determining when the bottom is reached rather than a "dead cat bounce". Socioeconomic and political events may cause a temporary increase, but use it as a time to sell if the BRIC nations are still economically unstable .
Be careful determining when the bottom is reached rather than a "dead cat bounce". Socioeconomic and political events may cause a temporary increase, but use it as a time to sell if the BRIC nations are still economically unstable .[/QUOTE] So hard to tell if its a dead cat bounce or the bottom and that's why all investments have risk. I'd like to see the prices come down more but only time will tell.
Russia has the "luxury" of being able to do that - Russians are a remarkably resilient people that can put up with so much more than most other people can. Good grief, revolution, WWII, communism. I have friends that have been financially wiped out three times with currency collapses, bank failures etc and still they go on - of course one of them has learned to stash the dosh in Switzerland out of the clutches of the Russian tax authority.
I want silver and gold, especially gold right now, to keep going down, down, down for my upcoming trip to Thailand next week. Makes the Thai gold my wife wants cheaper and cheaper to buy and I really like that!!! She won't buy US gold.
Good for her. I buy my wife all of the Thai gold she wants, as it's purer and much cheaper than gold in the US. Problem is, much of the price decline is due to the USD, in baht a baht of gold has not gone down much.
How has the baht done compared to the dollar ? If the dollar is stronger you should be able to get more baht per dollar . Then you'll come out ahead . BTW what fineness is most Thai gold ?
About 33 baht per dollar now. You will come out ahead for all things in Thailand from a year ago, its just relatively not quite as much with gold. Most Thai gold is about 23 karat or a little above. I believe legally in Thailand it has to be 96.5% pure, so a little over 23 karat. The downside to this is its really soft, so you have to be careful with it for jewelry. I physically can bend a 2 baht bracelet, so something like a chain clasp I could twist or crush very easily accidentally. Luckily I do not like jewelry, so its all my wife's and she is careful with it. It also scratches easily. But, as an investment in gold its unbeatable versus any other kind of jewelry. That is why I let me wife buy as much as she want, to me its just like AGE's in the SDB. I am getting another 5-6 baht for her next spring. I think we have about 15 baht in the sdb right now.
Plus it's functional and has a life outside the SDB! You get to see it more regularly, shining in the light and accessorized on your dear wife when she decides to wear it. I never get that pleasure just visiting precious metals kept stowed in a vault occasionally glimpsed in the SDB viewing room at a bank, but I encourage others to maintain an SDB for the security it provides all the same. I suppose also it can be easier to transport over boarders when worn, rather than trying to carry coin or bar bought internationally. And easier than carrying physical cash in large amounts internationally. I hear of a lot of investment in luxury goods these days going on in parts of the world with tight restrictions and uncertain economic situations, where fancy custom cars, for instance, are ordered and if things get bad at home, the owners can drive the goods (and a trunk full of fur coats, hand bags, etc) out of the country and resell the car and things elsewhere for cash. It's an easier way in some places to export one's wealth. I think the risk of crossing boarders like that is dangerous too though. And any investment has it's risk factors. But this is how some people think of investing in certain things that can be liquidated like a commodity, which is not a traditional bullion asset. Similarly, in places like Berlin and NYC, the high end and new property real estate market is booming with foreign investment. It's not only the new ultra rich from countries like China, but also entire families pooling money together for an investment in properties abroad. Maybe they are buying a modern loft in a Manhattan condo tower, or a new four story single family apartment along the path of the Wall in Germany. They can always find tenants to rent to in these countries and pay off mortgage or earn back on their investment until a later day when they could move there, retire there, flee there, resell there... anyway, I'm on many tangents now. It's just nice that you get to see your investment in use and I'm sure your wife enjoys showing it off and feeling nice dressed up, going shopping, etc.
