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How do you know when its a crash?

12346

Comments

  • tomterm8
    tomterm8 Posts: 5,892 Forumite
    Part of the Furniture Combo Breaker
    Oh well, I think it might be a good time to buy silver soon.

    (ducks behind sofa, ducking slippers).
    “The ideas of debtor and creditor as to what constitutes a good time never coincide.”
    ― P.G. Wodehouse, Love Among the Chickens
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    IronWolf wrote: »
    Im guessing quite a few spreadbetting accounts without stop losses have got wiped out by the sudden decline.

    Unless he had enough money in the account to cover a complete collapse, but who would do that :p

    Apparently I should blame JP Morgan/The Rothschilds/Goldman Sachs.

    Jewish conspiracy anyone...?
  • IronWolf
    IronWolf Posts: 6,454 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Just been a 10% rally in the last hour. Interesting stuff.

    We've only just touched yesterdays close though so the trends still downward.
    Faith, hope, charity, these three; but the greatest of these is charity.
  • ninky_2
    ninky_2 Posts: 5,872 Forumite
    Generali wrote: »
    If gold and/or silver are the only true forms of money (as some appear to believe or at least profess) you'd imagine that they'd be cheering gold and silver all the way to the bottom.

    After all, if the value of these pieces of true money is fixed by virtue of being finite (unlike fiat money say which is infinite, in theory at least) then the more of it you can get in exchange for transient assets the better.

    I can see why someone who has invested in a house or a share would want it to rise in value but someone buying gold surely wants the price to fall and stay as low as possible as money has to be spent, it can't just be a buy and hold proposition.

    nothing can be fixed in value by virtue of being finite. there is no logic in that. the only thing that determines value (to humans) is human demand. demand is never fixed. some people like to think they can contravene that rule by buying gold or whatever. truth is there is never a total guarantee on anything.

    to the gold hoarders and pension obsessives i say face facts we're all mortal. we're all going to die. !!!! happens.
    Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
  • chewmylegoff
    chewmylegoff Posts: 11,469 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    IronWolf wrote: »
    Just been a 10% rally in the last hour. Interesting stuff.

    We've only just touched yesterdays close though so the trends still downward.

    bulltrap or "return to normal" or whatever it's called, where's that stupid graph when you need it. probably been censored by jp morgan or something.
  • chewmylegoff
    chewmylegoff Posts: 11,469 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Generali wrote: »
    Apparently I should blame JP Morgan/The Rothschilds/Goldman Sachs.

    Jewish conspiracy anyone...?

    my theory is that scientists have finally managed to create stable anti-matter and have used it to create an anti-matter version of nelson bunker hunt.
  • Generali wrote: »
    If gold and/or silver are the only true forms of money (as some appear to believe or at least profess) you'd imagine that they'd be cheering gold and silver all the way to the bottom.

    After all, if the value of these pieces of true money is fixed by virtue of being finite (unlike fiat money say which is infinite, in theory at least) then the more of it you can get in exchange for transient assets the better.

    I can see why someone who has invested in a house or a share would want it to rise in value but someone buying gold surely wants the price to fall and stay as low as possible as money has to be spent, it can't just be a buy and hold proposition.

    Would someone be so kind as to explain this fiat money gubbins please? I take it it's nothing to do with Puntos or Bravas?
    Set your goals high, and don't stop till you get there.
    Bo Jackson
  • ninky_2
    ninky_2 Posts: 5,872 Forumite
    Would someone be so kind as to explain this fiat money gubbins please? I take it it's nothing to do with Puntos or Bravas?

    it's currency that is not backed up by any holdings such as gold. basically it only has value because everyone believes in it. otherwise it's just bits of paper and /or numbers in bank accounts.
    Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
  • gagahouse
    gagahouse Posts: 392 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    ninky wrote: »
    it's currency that is not backed up by any holdings such as gold. basically it only has value because everyone believes in it and has to else they will be put in jail for not paying their taxes with it. otherwise it's just bits of paper and /or numbers in bank accounts.

    Fixed for you ;)
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Would someone be so kind as to explain this fiat money gubbins please? I take it it's nothing to do with Puntos or Bravas?

    Fiat means 'order or diktat' so fiat money is using something as money because you are told to rather than because it has any intrinsic value.

    The Pound used to be backed by gold, that is a pound note could be swapped for a gold Sovereign coin containing 113 grains of gold. Before that, the name Pound Sterling comes from the origin of the British currency: a Pound was a pound of silver.
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