He says the dollar is going down and will be replaced. His replacements include gold, silver and the yuan. But can the yuan replace the dollar or will the same problems happen? There is simply not enough gold in the world to make it a major currency. If world wide inflation hits and a global recession dips toward depression, china is going to take a big hit. Who are they going to sell their goods to? If they don't take dollars, the euro is not too strong either, what are other countries going to use to buy chinese goods with?
China would like to suck up all the world's gold but its not so easily done. Its not like buying a big company where you can offer a premium over market price and take it private. You can pick up a lot of gold that way but people are not stupid and they will offer even higher amounts.
I'm amazed that they are able to keep the price of gold as low as it is. Far from being in a bubble, gold is in a reverse bubble. It is seriously undervalued. If panic should hit the world financial markets and the usd, euro, yen, etc simultaneously take a dive sending consumer prices skyrocketing, gold could shoot up as never seen before. Its the guy on the street who is always the last to know these things. When he starts to think he better buy some gold, then the end game has begun. Those who bought it cheap will be instant millionaires and billionaires.
I could go out and buy a few oz with the spare cash i have on hand, maybe 10 or so. I'm wondering if i should wait till i sell a house and get more serious or buy now and more later? I would hate to see that a flash build up in price hit and those 10 extra oz might be worth a couple thousand more than now. I mean each.
OT but i have a modest but reasonable supply of bitcoins. I was going to sell when they hit 25 and buy back in when the inevitable drop happens. I would make a few k on the deal or close to it. But btc might go to 100 in a year, you never know.
