Comments on: What Happens When Demand for US Debt Dries Up? http://livingoffdividends.com/2009/01/09/what-happens-when-demand-for-us-debt-dries-up/ Join me on my journey to achieve financial independence through dividends, passive income and investments Tue, 16 Mar 2010 21:22:11 -0700 http://wordpress.org/?v=2.8.1 hourly 1 By: Dave So http://livingoffdividends.com/2009/01/09/what-happens-when-demand-for-us-debt-dries-up/comment-page-1/#comment-36689 Dave So Tue, 03 Mar 2009 21:21:43 +0000 http://livingoffdividends.com/?p=896#comment-36689 What do I think to the Royal bank of scotland? RBS boss Fred goodwin should be stripped of his pension. If they pay him a profit related percentage he will get minus figures. Taking away his pension is the best option. What do I think to the Royal bank of scotland? RBS boss Fred goodwin should be stripped of his pension. If they pay him a profit related percentage he will get minus figures. Taking away his pension is the best option.

]]> By: Mark http://livingoffdividends.com/2009/01/09/what-happens-when-demand-for-us-debt-dries-up/comment-page-1/#comment-30546 Mark Fri, 16 Jan 2009 06:00:05 +0000 http://livingoffdividends.com/?p=896#comment-30546 I think that deflation is a much greater problem than inflation. T-bills are selling at extremely low interest rates. An inflationary environment would be a good problem because it would mean our economy is growing. The Treasury may be pumping money into our economy but no one is spending. I think that deflation is a much greater problem than inflation. T-bills are selling at extremely low interest rates. An inflationary environment would be a good problem because it would mean our economy is growing. The Treasury may be pumping money into our economy but no one is spending.

]]> By: Dollar Frugal » Blog Archive » Wednesday Linkings - January 14, 2009 http://livingoffdividends.com/2009/01/09/what-happens-when-demand-for-us-debt-dries-up/comment-page-1/#comment-30274 Dollar Frugal » Blog Archive » Wednesday Linkings - January 14, 2009 Wed, 14 Jan 2009 10:28:35 +0000 http://livingoffdividends.com/?p=896#comment-30274 [...] US Debt @ Living Off Dividends [...] [...] US Debt @ Living Off Dividends [...]

]]> By: Rob http://livingoffdividends.com/2009/01/09/what-happens-when-demand-for-us-debt-dries-up/comment-page-1/#comment-30162 Rob Tue, 13 Jan 2009 17:07:01 +0000 http://livingoffdividends.com/?p=896#comment-30162 HP - part of the attraction of owning gold and silver, is the fact that you own something with intrinsic value, something solid, something substantial. Owning a metals ETF may give you exposure to price ups and downs, but certainly doesn't give you that reassuring feeling that only real precious metals in your hand can. Many metals owners want to isolate some of their wealth from the electronic / paper system that we all live in. If that system crashes - what would your ETF shares be worth? Not a whole lot. Hence the desire for real metals. HP – part of the attraction of owning gold and silver, is the fact that you own something with intrinsic value, something solid, something substantial. Owning a metals ETF may give you exposure to price ups and downs, but certainly doesn’t give you that reassuring feeling that only real precious metals in your hand can.

Many metals owners want to isolate some of their wealth from the electronic / paper system that we all live in. If that system crashes – what would your ETF shares be worth? Not a whole lot. Hence the desire for real metals.

]]> By: Buy Gold Coins http://livingoffdividends.com/2009/01/09/what-happens-when-demand-for-us-debt-dries-up/comment-page-1/#comment-29876 Buy Gold Coins Sun, 11 Jan 2009 21:08:43 +0000 http://livingoffdividends.com/?p=896#comment-29876 very good question. <strong>why should you buy gold/silver coins?</strong> as the demand for gold/silver increases, the premiums on the coins will start widening. its already grown in the past 2 years after being almost nothing for over a decade. I paid $20 over spot for <a href="http://frenchgoldcoins.info/gold-coins/Australian-perth-mint-lunar-series-gold-coins" rel="nofollow"><strong>Australian Lunar gold coins</strong></a> back in 2006. Since then, they attained collector status and fetch a bit more than that. But even <a href="http://frenchgoldcoins.info/search/gold+krugerrand" rel="nofollow"><strong>bullion coins like the Krugerrand</strong></a> will demand a premium of at least $50 over the spot price of gold. Also, if confiscation ever comes back to the US (you never know, it just might - we've already had a historical precedent) its better to have non-confiscatory collectible coins rather than ETFs or bullion. very good question.

why should you buy gold/silver coins?

as the demand for gold/silver increases, the premiums on the coins will start widening. its already grown in the past 2 years after being almost nothing for over a decade. I paid $20 over spot for Australian Lunar gold coins back in 2006.
Since then, they attained collector status and fetch a bit more than that. But even bullion coins like the Krugerrand will demand a premium of at least $50 over the spot price of gold.

Also, if confiscation ever comes back to the US (you never know, it just might – we’ve already had a historical precedent) its better to have non-confiscatory collectible coins rather than ETFs or bullion.

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