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Gold vs. US Treasuries as safe haven

Krag

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#1

Unca Walt

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nickndfl

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When rates fall the price of bonds increases. It's an inverse relationship.
 

Peter52

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#4
It looks like a lot of major commentators are saying there is nothing keeping US treasuries from falling and that gold is the only other real safe haven
What is a safe haven?
I would say, a safe haven...
- has no counterparts risk;
- hold purchasing power of its owner over the long term, even in case of some financial collapse or economic crises;
- is money.

Bonds and stocks are not money, and have counterparty risk.
Commodities are not money and lose value during economic downturns.
Fiat has counterparty risk (the value of your money depends on the decisions of the central bank managing it).


Central Bank Issues Stunning Warning: "If The Entire System Collapses, Gold Will Be Needed To Start Over"

An article published by the De Nederlandsche Bank (DNB), or Dutch Central Bank, has shocked many with its claim that "if the system collapses, the gold stock can serve as a basis to build it up again. Gold bolsters confidence in the stability of the central bank's balance sheet and creates a sense of security."
 

Strawboss

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#5
What is a safe haven?
I would say, a safe haven...
- has no counterparts risk;
- hold purchasing power of its owner over the long term, even in case of some financial collapse or economic crises;
- is money.

Bonds and stocks are not money, and have counterparty risk.
Commodities are not money and lose value during economic downturns.
Fiat has counterparty risk (the value of your money depends on the decisions of the central bank managing it).


Central Bank Issues Stunning Warning: "If The Entire System Collapses, Gold Will Be Needed To Start Over"

An article published by the De Nederlandsche Bank (DNB), or Dutch Central Bank, has shocked many with its claim that "if the system collapses, the gold stock can serve as a basis to build it up again. Gold bolsters confidence in the stability of the central bank's balance sheet and creates a sense of security."
Hey guys....

We got a newbie here...and it looks like he knows what's what already...

Welcome to the psychiatric ward of the gold community Peter...
 

edsl48

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#6
For hose that may not know Treasury Notes and Bills can be bought commission free at Treasurydirect,gov
Maturities as short as 4 weeks.
When tshtf gold will be king...but in the meantime the interest on those securities can be spent at the grocery store.
1571051192039.png


1571050977480.png
 

Strawboss

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#8

Usury

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For hose that may not know Treasury Notes and Bills can be bought commission free at Treasurydirect,gov
Maturities as short as 4 weeks.
When tshtf gold will be king...but in the meantime the interest on those securities can be spent at the grocery store.
View attachment 143434

View attachment 143433
Fidelity also will let you buy them in your account commission-free. The advantage is that you have the option to sell prior to maturity if need the cash sooner and may be able to sell for a premium if rates drop. Plus it’s capital gain rather than interest income in such a scenario which can matter to some tax returns. They make a little money on the buy sell spread if you do choose to sell later prior to maturity. However if you hold to maturity and realize full P&I pmt from .gov then you get exactly the same as going Treasury Direct.
 

Usury

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#10
Other brokers may also do this....
 

newmisty

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EO 11110

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Actually gold dipped some, and silver dropped quite a bit during the 08 crash. I think there may have been some institutions that needed cash fast, so they abandoned their PM positions.
you can see it dip and recover all losses in 2008. it finished with a small gain -- while paper assets (minus treasuries) were being decimated

1571260191922.png
 
Last edited:

Bottom Feeder

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#16
An article published by the De Nederlandsche Bank (DNB), or Dutch Central Bank, has shocked many with its claim that "if the system collapses, the gold stock can serve as a basis to build it up again.
Unh, yeah, with 6.62 billion in gold they're gonna kick-start a 901.9 billion dollar economy. Yeah, sure.

BF
 

edsl48

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#17
Fidelity also will let you buy them in your account commission-free. The advantage is that you have the option to sell prior to maturity if need the cash sooner and may be able to sell for a premium if rates drop. Plus it’s capital gain rather than interest income in such a scenario which can matter to some tax returns. They make a little money on the buy sell spread if you do choose to sell later prior to maturity. However if you hold to maturity and realize full P&I pmt from .gov then you get exactly the same as going Treasury Direct.
Good point! I didn't know that.
 

keef

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#18
1571333180755.png

More QE ain't gonna solve this one. You guys need to liquidate all that horded gold to right the ship, Welcome to Walmart.
 

Unca Walt

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Ragnarok

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newmisty

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newmisty

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Buck

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#27
you can see it dip and recover all losses in 2008. it finished with a small gain -- while paper assets (minus treasuries) were being decimated

View attachment 143643

but what is that paper worth today?


pretext:
The LIVE Paper that is left...there were so many companies that were 'lost' along the way, some, imho, shouldn't have 'left us'...

anyway...

the LIVE Paper that is left has overcome all obstacles that were in it's way and it's exceeded that run you speak of...why, there are a myriad of reasons why, they just did...

:dog: