$100,000

[moncton golden flames]

Originally Posted by Slava

But how do you rectify that stance with currencies that are on the gold standard? Part of the (gold = amazing returns) argument is a return to the gold standard for some of the major currencies. In that event doesn't the holding of the currency basically equal the holding of gold?

Perhaps I'm not smart enough to even understand how this could go. I have to say that I find it incredibly confusing, and it feels like discussing quantum mechanics or something equally as imperceivable to me!

i would think that if we or any other country returned to the gold standard, a new currency would be created (amero....maybe even backed by silver) leaving our current dollar about as valuable as toilet paper. if this is the case, then my gold or silver will carry my wealth from currency to currency or whatever new trade currency we will be using. by holding fiat currency as an investment now, my wealth will erode and disappear when the dollar devalues enough for the new money to come online.

essentially, precious metals will preserve wealth thru a transition of currencies.

[Bertuzzied]

Start a Ponzi scheme. I have some really good bank letter head i can sell you for $5k!
everyone wins!

[Slava]

Originally Posted by IliketoPuck

I personally don't see an economic armageddon in my lifetime. Maybe I'm wrong and will end up destitute.

I'm with you on this, 100%. I'm actually incredibly optimistic over the longer term and that makes me both happy and excited for my children and childrens children. I just wonder how some of the others view things though. Clearly when people are stocking up on the metals themselves they've thought this through a lot more than me, so I'm very curious to get their view.

[moncton golden flames]

Originally Posted by IliketoPuck

I personally don't see an economic armageddon in my lifetime. Maybe I'm wrong and will end up destitute.

If I had 100 grand, it would be invested in real estate to build up my personal wealth.

to be fair, real estate might be a good spot during a currency/economic collapse as long as you can still pay it off. the currency will inflate, but the principal owing should remain static, so inflation could be your friend.

peak oil has many different meanings, but the one i live by is "end of cheap oil". oil creates everything we have today, and when it is too expensive to use, things will deteriorate or collapse.

[Slava]

Originally Posted by moncton golden flames

i would think that if we or any other country returned to the gold standard, a new currency would be created (amero....maybe even backed by silver) leaving our current dollar about as valuable as toilet paper. if this is the case, then my gold or silver will carry my wealth from currency to currency or whatever new trade currency we will be using. by holding fiat currency as an investment now, my wealth will erode and disappear when the dollar devalues enough for the new money to come online.

essentially, precious metals will preserve wealth thru a transition of currencies.

I just read a quote a few minutes ago that "the dollar may be the worst currency in the world, except for all the others." and had a good laugh. I suppose what it comes down to is that if everything falls apart you are protected whereas a guy like me isn't at all. If everything stays together and goes well you don't lose much if at all, and neither do I.

[Flame Of Liberty]

I wonder what the CP stock people think of this:

Yesterday we discussed the statistically impossible trading desk results of Goldman Sachs, which reported in its 10Q that it lost money on exactly 0 days last quarter, and was profitable on 63 out of 63 days. Today we find that the rape and pillage of the middle class was not isolated to Goldman, and that JP Morgan also had a flawless quarter. And if the odds of Goldman making 63 out of 63 are virtually impossible in any universe in which risk goes hand in hand with return (but in those in which monopolies are encouraged and bailed out), the coincidence of the two main firms that control the world having a perfect track record is impossible2.

http://www.zerohedge.com/article/jpm...ey-just-4-days

[1stLand]

If we are talking about an extreme 'doom and gloom' scenario in 20 years, then I would save up and buy alot of guns and ammo.

It would help you owned an acerage / quarter section outside a major city center.

If there is no law and order, best bet is to stay away from as many people as possible.

I am not talking about guns and ammo so much for personal use, but for trade and barter.

If it really hits the fan, people will be less concerned about silver coins, then they will be about buying guns and ammo so they can defend what they own, and in terrible cases, using those weapons to steel other's precious possessions that could mean the difference between life and death.

i sure hope it doesnt get to this.

also, guns and ammo are important for killing wild game in order to be able to eat.

[Flame Of Liberty]

More on the golden track record by those guys with a peculiar sounding name (that's for the conspirators out there

A bit of math for the geeky among you... or those interested in the odds of Goldman's "perfect trading record" being achievable.

Let's take a simple game of chance. We flip a coin and call "heads" a winning day, and "tails" a losing day. A pure game of chance with a 50% set of odds for each "trial."

So what are the odds that in a pure game of chance the coin would come up "heads" all 60 times?

That would be 8.67 x 10-19, or 8.67 times in 10,000,000,000,000,000,000 attempts (if I counted my zeros correctly.)

Now certainly trading is not a pure game of chance. Indeed, quite to the contrary; trading is allegedly a game of skill in the main.

I will leave it to you, and those who investigate frauds, to determine whether the application of skill, without any sort of cheating such as front-running client orders, insider information or other forms of rigging the markets, can turn the random chance odds of 8.67 x 10-19 into an event that has, in fact, actually occurred.

link

[IliketoPuck]

They were responsible for 9/11 too.

But seriously, it is a bit odd. I would have to know what their trading strategies are in order to formulate an opinion though.

[Redliner]

If i'm preparing for the apocalypse here, I might use a lot of it to buy gold, but a good chunk would probably go into food storage, elimination of any debt I might have at the time, storable fuels like wood pellets & bottled gas, and guns & ammo. The idea of currencies returning to the gold standard is likely only if society remains intact enough to stay "civilized" - if people are starving to death in high numbers, they aren't going to care much about gold. If the s**t really hits the fan, things will revert to a barter structure and the only things of value will be items and commodities that can be used to sustain life. For those who really want a worst-case scenario, read "The Road" by Cormac McCarthy.

BTW, I really don't think that things will revert to the stone age, but people are basically animals and when push comes to shove they will do what they have to do to stay alive. In the case of a severe economic collapse or major natural or ecological disaster, my primary concern is always going to be the health and safety of my family.

[firebug]

A few items to consider.

Is this a windfall, or is there a likelihood of similar payouts in the future. Personally, a windfall would be invested more conservatively than if the amount was likely to be repeated again in the future.

Have you considered your tax position. Will this be considered income, capital gains or tax exempt, or is the 100k an after tax amount.

Unfortunately, you are likely to find that 100K is really not all that much when it comes to a permanent lifestyle change, but if you are young, put away it would take care of your retirement.

~firebug

[troutman]

Open an In and Out Burger franchise in Calgary.

[IliketoPuck]

You mean Tim Horton's right?

[moncton golden flames]

Originally Posted by firebug

A few items to consider.

Is this a windfall, or is there a likelihood of similar payouts in the future. Personally, a windfall would be invested more conservatively than if the amount was likely to be repeated again in the future.

Have you considered your tax position. Will this be considered income, capital gains or tax exempt, or is the 100k an after tax amount.

Unfortunately, you are likely to find that 100K is really not all that much when it comes to a permanent lifestyle change, but if you are young, put away it would take care of your retirement.

~firebug

this is would be a tax exempt, one time amount. i know 100k is not much money in the grand scheme of things, but it sure could be a great start to a better life if done properly.

[troutman]

Originally Posted by IliketoPuck

You mean Tim Horton's right?

Nope. If you go see In And Out Burger in California, people are lined-up out the door all day. A gold mine I'm telling you!

[Bertuzzied]

Originally Posted by troutman

Nope. If you go see In And Out Burger in California, people are lined-up out the door all day. A gold mine I'm telling you!

Like a Krispy Kreme? hehe

You know for any of these franchises you would need more than a $100k right?

[macker]

Down payment on a farm.....

http://www.allthingsjimrogers.com/20...ming-business/

[Sylvanfan]

Originally Posted by Redliner

BTW, I really don't think that things will revert to the stone age, but people are basically animals and when push comes to shove they will do what they have to do to stay alive. In the case of a severe economic collapse or major natural or ecological disaster, my primary concern is always going to be the health and safety of my family.

Really if things play out as bad as is being suggested here by a few. Who cares about what debt you have and all that. Like you're going to pay it, and what the banks going to hire a hitman to kill you? Good, saves me from starving to death. You better be able to defend yourself because people are going to go on the offensive and attack those who have things they don't.

I'd say blow the 100 grand while there is some enjoyment to be had in life, and when the world goes to the crapper, deal with it than. The guy who prepares to be well off should this happen is going to end up with a nice target on his back.

[simmer2]

If you're young, go travelling for a year around the world. You can't put a price on the experience you'll gain doing that.

[IliketoPuck]

I'd say the maximum price would be ~$100,000