Law /
Which currency is better for Poland and the Eurozone? Euro or Zloty? [36]
Hiya, I agree that the only thing set in stone is that all we can do is speculate, we're just choosing to play the same game from different perspectives.
This isn't the first all-time high against fiat currencies, those records have been broken many times over the past year or two, and will continue to do so for at least another 2-3 years in my opinion.
The Swiss debate - well they abolished their gold standard relatively recently, in 1997. Then the Swiss central bank (SNB) along with a whole host of other central banks sold off a mighty amount of their gold reserves, which if course pushed the price down for a while.
Then 9/11 happened, which triggered the start of the current situation. The gamble is betting on whether this is a bull market for gold and silver, or a bubble.
I'm putting my money on the former.
Here is a link to a short article on the gold franc in terms of a parallel currency rather than just a standard issue like the krugeraand/panda/sovereign etc:
marketwatch.com/story/swiss-parliament-to-discuss-gold-franc-2011-07-0 7
It is just one article telling one side of the story granted, but I just wanted to confirm that there is the beginning of a real discussion about it.
In any case, even if it is a bubble, it will still last for as long as the current 'solution' to global financial problems is to keep printing more money. If the central banks keep the printing presses running, inflation will stay high, and investors will keep turning to precious metals in order to protect their wealth.
When the price stablises though, metals will always be a good way to store wealth because the way the fiat system works, inflation will always devalue paper money against rare commodities.
I know a few people that make good money from stocks in the current short term, and I will be the first person to admit that the main reason I don't invest (in the short term) is because I find the metals market (and politics) much easier to get my head around!
The return from metals for me as a new investor 2 years ago have been so astronomical that yes, I do often think it's not sustainable, but as soon as I think they are slacking off, they take off again, and returns of around 150% are difficult to walk away from.
I will always be prepared to eat my hat of course, and if I lose the lot, you are more than welcome to buy me a beer and tell me 'you told me so' :0)
Matt
ps that photo posted above made me giggle, but man, crazy times..