Author Topic: Financial Armageddon (Read 571 times)

Matthew · « **on:** July 11, 2008, 10:25:15 AM »

I hope no one has their savings in a bank -- you might just lose it all. (And I certainly hope no one here is still gambling on the stock market -- it has a LONG way to fall yet)

For savings, I recommend silver or gold -- physical bullion only.
Coin shops will sell you old US Silver coins for $11 for a dollar's face value (10 dimes, 4 quarters, etc.) These are an excellent store of value and are 90% silver. Everyone recognizes them as well as their value.

Right now the 2 big government-sponsored companies Freddie Mac and Fannie Mae are on the brink of bankruptcy. If the US Gov't has to step in and bail them out, it would add $5 trillion to the national debt. Not exactly good for the dollar -- but it would be great for precious metals!

Matthew

Matthew · « **Reply #1 on:** July 11, 2008, 10:32:44 AM »

Just now, the DOW has plunged into the 10,000's

That number hasn't been seen in 2 years!

The DOW's peak was 14,198

Glad I don't have any money in the stock market.

Matthew · « **Reply #2 on:** July 11, 2008, 10:34:02 AM »

Here is a comparison of how the DOW has done in the last 2 years, compared with gold:

(Gold is the one that got a 53% return -- the DOW actually LOST money in that same time period)

Dawn · « **Reply #3 on:** July 11, 2008, 12:26:44 PM »

Matthew, I agree as usual. Right now I am trying to get my Grandmother to get what very little money she has left out of the stock market and have the banker who handles her trust by silver/gold. She is afraid that the trust bankers will think she is nuts as they tell her all is well and that the market will not fail.

gladius_veritatis · « **Reply #4 on:** July 11, 2008, 01:03:50 PM »

If she calls the shots, who cares what the trust managers think? Let them call her insane, just so long as the DO WHAT SHE WANTS. Btw, make sure she gets physical silver/gold - NOT just a certificate. Silver is BY FAR the better buy - and it is more useful as money. Interestingly enough, gold was not really used as money throughout much of history. It was normally used for higher matters, such as worship (even false worship). Silver served as money. At 1/50th the present price of gold, silver is a STEAL!

gladius_veritatis · « **Reply #5 on:** July 11, 2008, 01:09:14 PM »

This might sound harsh or contrary to good sense, but...

Buying gold right now, instead of silver, strikes me as stupid. Their present ratio is so massively lopsided (50:1), it makes no sense to buy the one that is by far the more expensive of the two. Either people are paying far too much for gold (which they are NOT), or they are paying far too little for silver (which they ARE). Btw, the historical ratio has been around 16:1.

Imo - FORGET gold; BUY silver. It is a rather monumental 'NO BRAINER'.

Dawn · « **Reply #6 on:** July 11, 2008, 03:53:25 PM »

I think silver is the best bet too. As for Grandma, she is 92 and says that this world is too much for her and I do not know if she has enough ginger left to argue. I will again try to point out that her money will be at the worse gone or atleast down to a mere pittance if she does not ask for silver.
I can not imagine what this world looks like to people her age. America is Sodom and the Rome is nowhere to be seen.