The global financial system is broken, with banks refusing to lend to one another at any cost, even as central banks attempt to increase system liquidity. As the interbank lending rate surges well past normal levels, usual circuit-breakers such as liquidity facilities have simply failed. In this environment, only the holders of physical assets such as gold and oil appear to have the upper hand. Sell your equities, by the way.
CityUnslicker is not happy that I'm talking doom and gloom when what is needed in the financial markets at present is confidence. I do see your point but sorry - this thing is induced and the rhetoric is simply reflecting what I suggested to everyone some time back.
And I think silver is a better bet in uncertain times - governments have a habit of confiscating gold in time of trouble.
Well, I haven't got any equities - what are they? - and I can't afford any gold or silver so I'll just have to live on pasta with oil when the crash comes!
ReplyDeleteSir James,
ReplyDeleteI have to say that I am looking forward to the next few weeks with considerable trepidation. Over the last few days I've been re-balancing my investments in a much more conservative direction. (Including pasta and oil!)
My gold mining stocks are not going up, despite the gold price increasing and I remember too well the silver market being artificially manipulated some years ago. Bank stocks and very conservative stocks are my standbys.
ReplyDeleteAll of a sudden, gold is old news and is not popular anymore.
ReplyDeleteI will go for Diamonds, they are always better!
James,
ReplyDeleteBack again. You may be interested in this guy.
James - sorry for the late reply, have been aay over the weekend.
ReplyDeleteGold is certinaly behvaing strangely in that it has only just started to go up a shade. Also there is much less goldin the world reserves than there used to be; so the price should be higher.
However, if/as the storm worsens it will be a good place to go. As will oil, although if the US dollar slips a lot more then the relative price of oil comes down too.
There are no easy answers at the moment with the asset bubbles all over the place.
JMB - My gold stock similarly are not very exciting..china bubble still going great guns though, just need to time the exit right!
CUS - thanks for that. I always like reading your analysis. The otehr views were food for thought too.
ReplyDelete