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Thread: Ireland's lack of gold - a problem?

  1. #1
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    Default Ireland's lack of gold - a problem?

    Ireland is fairly unusual as a country which has been capitalist and democratic for the last 200 years, but has virtually no gold reserves held in its name in the central bank.

    Certainly, we are going to be faced with an extreme situation in 2036 to 2056 or so, as our demographic bulge will be retiring then.

    The potential pension crisis is getting a lot of air time today, 29 years before it's due to hit us. Everyone's being urged to set up a pension fund. Now in one narrow sense pension funds are financially valuable, for the consumer: they get big tax breaks, in essence.

    However in another sense there's a major problem with pension funds that nobody is addressing: they are directed towards international shares and bonds which are today massively overvalued. Today's dominant market players: the EU, Japan and north America, are moving into a long period of economic stagnation.

    It's arguable that all 3 major powers are no longer really growing significantly, and are approaching or have reached the limit of their growth potential.

    The dollar has been treading water for the last five years, and is now falling heavily as the effects of financial gravity take hold. So the USA is growing: but only with the help of a debased currency. European pension fund investors are getting burned by the plummeting € value of their $ holdings. Ludicrous companies like Apple and Google account for a huge proportion of the US market. And your pension is heavily invested in them.

    If the West continues to operate a free-trade system with China and India, it is certain that those two nations will continue to grow hugely. Democratic India is buying gold with both hands, Sanjeev Q Public has no intention of trusting his future to devalued Rupees, thank you very much. China currently operates and anti-gold, pro-US dollar policy. But China can turn on a sixpence when it wants to, as was displayed in 1978 when it went from Stalinism to capitalism over lunch.

    Anyway, in 1999, gold hit the buying opportuntiy of a lifetime: because all the new money was flowing into doomed dot-coms, it collapsed to $250. It has steadily advanced since then.

    Is it time for Ireland to acquire a few dozen tonnes of the yellow stuff while it's still extremely cheap? Over the next decades a billion people are going to move from poverty to the middle classes. Jewellery demand alone can be expected to cause its value to treble. Add in investor demand, and a six-times rise by the time Ireland's pensions crunch hits seems pretty certain.

    Or do you still think that Google will be boss of the world for the next 3 decades?
    When you see the words "Mises" or "Hayek" in someone's post, just ask yourself: do I really want to ban paper money and go back to gold?

    You have to pity the kind of people who buy into conspiracy theories. I find the following to be the saddest words on the internet: "Re: connection between Bilderberg puppet lady gaga and viral outbreak in ukraine "

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    Feargach there is so much here that i disagree with. Sets start with the basic one, how can you predict the future with any accuracy?
    Knowledge is power.

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    Quote Originally Posted by onthefence
    Feargach there is so much here that i disagree with. Sets start with the basic one, how can you predict the future with any accuracy?

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    Quote Originally Posted by onthefence
    Feargach there is so much here that i disagree with. Sets start with the basic one, how can you predict the future with any accuracy?
    Well, the world's gold supply is growing at 1% a year and the world's paper-money supply is growing at 10-15% a year. Any relatively rare chemical substance like oil gold and copper that people have a strong desire for is guaranteed to grow heavily over the coming decades.

    I'm also predicting that the sun will rise tomorrow morning, do you doubt my predictive powers on that?
    When you see the words "Mises" or "Hayek" in someone's post, just ask yourself: do I really want to ban paper money and go back to gold?

    You have to pity the kind of people who buy into conspiracy theories. I find the following to be the saddest words on the internet: "Re: connection between Bilderberg puppet lady gaga and viral outbreak in ukraine "

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    Quote Originally Posted by onthefence
    Feargach there is so much here that i disagree with. Sets start with the basic one, how can you predict the future with any accuracy?
    Whaddayamean ?

    Prophecy is an extremely accurate science, just as long as it has nothing to do with the future !


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    I think it is very important for the individual to grab some for himself. I don't have the figures but believe Ireland has a decent quantity of gold relative to it's size and did not have a fool like Brown selling it at the cheap price of 260.

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    Quote Originally Posted by youngdan
    I think it is very important for the individual to grab some for himself. I don't have the figures but believe Ireland has a decent quantity of gold relative to it's size and did not have a fool like Brown selling it at the cheap price of 260.
    The World Gold Council says ( http://www.usagold.com/reference/official-gold-2007.pdf ) we currently have 5.5 tonnes, which puts us 75th in the world. Netherlands are 7th with 640 tonnes, Portugal 13th with 382t. Belgium 20th with 227t. Thailand 33rd with 84t. Borat's own Kazakhstan is 38th with 67t. Nigeria 53rd with 21t.

    Boy our central bankers have reason to be fierce proud! We almost have a third of the reserves of Africa's worst disaster story.
    When you see the words "Mises" or "Hayek" in someone's post, just ask yourself: do I really want to ban paper money and go back to gold?

    You have to pity the kind of people who buy into conspiracy theories. I find the following to be the saddest words on the internet: "Re: connection between Bilderberg puppet lady gaga and viral outbreak in ukraine "

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    Quote Originally Posted by feargach
    Quote Originally Posted by youngdan
    I think it is very important for the individual to grab some for himself. I don't have the figures but believe Ireland has a decent quantity of gold relative to it's size and did not have a fool like Brown selling it at the cheap price of 260.
    The World Gold Council says ( http://www.usagold.com/reference/official-gold-2007.pdf ) we currently have 5.5 tonnes, which puts us 75th in the world. Netherlands are 7th with 640 tonnes, Portugal 13th with 382t. Belgium 20th with 227t. Thailand 33rd with 84t. Borat's own Kazakhstan is 38th with 67t. Nigeria 53rd with 21t.

    Boy our central bankers have reason to be fierce proud! We almost have a third of the reserves of Africa's worst disaster story.
    "Anyway, in 1999, gold hit the buying opportuntiy of a lifetime: because all the new money was flowing into doomed dot-coms, it collapsed to $250. It has steadily advanced since then. "

    FEargach, when do you predict the next gold price collapse will be? YOu talk about it as if it is a sure winner, however, what views of golds future did people have before the above mentioned collapse? They probably thought gold would continue to soar until it fell.

    You may have a good point but I dont know enough about gold trading right now to predict yes or no. Interesting stuff, and I noted Youngdans comments on other threads regarding oil. Truly interesting.

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    That is why I did not read about them selling any then. I believe this is a disgrace. Celtic tiger my asal. I have even less respect for the Biffo and the guy with the yellow suit but not golden suit now. I am flabbergasted. Anyone with half a brain would have corrected this during the good times but the don't have half a brain.

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    Didn't gold as a reserve get replaced by a floating currency system (or something) in the 70s?

    As for the future, isn't it likely that some new standard will emerge, some new trade agreement. If there isn't a war to introduce this I suggest it could be based on energy efficiency and human-economic indices. If your country or trading bloc is relatively self-sufficient yet people want to go there for some reason (education, travel, knowledge, justice, standard of living, experience) then somehow simple laws of supply and demand apply.

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