Comments on: Global Economic Recession: Coming To A Town Near You! http://livingoffdividends.com/2009/03/06/global-economic-recession-coming-to-a-town-near-you/ Join me on my journey to achieve financial independence through dividends, passive income and investments Tue, 13 Dec 2011 07:31:37 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: Living Off Dividends http://livingoffdividends.com/2009/03/06/global-economic-recession-coming-to-a-town-near-you/comment-page-1/#comment-37594 Living Off Dividends Tue, 10 Mar 2009 08:55:30 +0000 http://livingoffdividends.com/?p=980#comment-37594 I like <a href=http://frenchgoldcoins.info rel="nofollow">french gold coins</a> ;-) I like french gold coins ;-)

]]> By: MoneyEnergy http://livingoffdividends.com/2009/03/06/global-economic-recession-coming-to-a-town-near-you/comment-page-1/#comment-37487 MoneyEnergy Tue, 10 Mar 2009 03:48:54 +0000 http://livingoffdividends.com/?p=980#comment-37487 Geezus.....this is the worst forecast I've heard, much worse than Roubini. It even has me feeling panicky. It's too bad there's so many guns in the US, because that's obviously going to contribute to the probs this guy forecasts. Guns are not the answer.... Too bad gold orders are already backed up at all the major dealers. If you know of another one, let me know! Geezus…..this is the worst forecast I’ve heard, much worse than Roubini. It even has me feeling panicky. It’s too bad there’s so many guns in the US, because that’s obviously going to contribute to the probs this guy forecasts. Guns are not the answer….

Too bad gold orders are already backed up at all the major dealers. If you know of another one, let me know!

]]> By: Brian http://livingoffdividends.com/2009/03/06/global-economic-recession-coming-to-a-town-near-you/comment-page-1/#comment-37154 Brian Sat, 07 Mar 2009 20:08:23 +0000 http://livingoffdividends.com/?p=980#comment-37154 Nirav, why would a scenario that "revisits the Great Depression" cause a spike in the price of gold? That was certainly not the case in the 1930s. The US currency was on the gold standard during the Depression. The gold price did get officially moved up from $20 (where it had been for most of the past 100 years) to $35 in 1933 under FDR. But that is less than 100% and does not constitute a spike (IMO). But that move may have just been to relieve pressure built up by a run on gold caused by the panic of a global depression. (if gold was trading for a lot higher than $20 on the world spot market, as it was, then there was an arbitrage to be had by demanding gold from the US Treasury and selling at a higher price on the spot market). Panic aside, a deflation induced depression will cause the value of a currency to increase (as money supply decreases). So the rational, mathematical relationship between a dollar and gold during a depression is for gold to drop in value, not rise. It will only rise during an inflation when the opposite happens. Nirav, why would a scenario that “revisits the Great Depression” cause a spike in the price of gold? That was certainly not the case in the 1930s. The US currency was on the gold standard during the Depression. The gold price did get officially moved up from $20 (where it had been for most of the past 100 years) to $35 in 1933 under FDR. But that is less than 100% and does not constitute a spike (IMO). But that move may have just been to relieve pressure built up by a run on gold caused by the panic of a global depression. (if gold was trading for a lot higher than $20 on the world spot market, as it was, then there was an arbitrage to be had by demanding gold from the US Treasury and selling at a higher price on the spot market).

Panic aside, a deflation induced depression will cause the value of a currency to increase (as money supply decreases). So the rational, mathematical relationship between a dollar and gold during a depression is for gold to drop in value, not rise. It will only rise during an inflation when the opposite happens.

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