Wednesday, August 3, 2011

Real Life Gold

The ECB will eventually have to inflate the Euro. Just like the FED is already inflating the Dollar. Of this I am (almost) certain. Therefore, I should put my money somewhere else. But where?

Gold is ridiculous right now. I mean, I sure wished I had decided to buy it a year ago. But gold is useless. It's the biggest bubble in human history. The only reason gold is valuable is because people think that it is valuable. On the other hand, in the end, that is true for almost anything.

Alternatively I could buy some Switzerland bonds. Their central bank (SNB) has just decided that a 70% overpriced currency (compared to PPP) is too much. I would agree. The Swiss are currently buying German cars and laughing at the silly amount of CHF we want in exchange. That's not funny anymore. Of course, the Switzerland export industry is laughing as well - in disbelieve. They can't believe what is happening. Nobody here can afford to buy goods from Switzerland anymore.

The SNB is really between a rock and a hard place right now. Not intervening, however, might crush their industry. So .. I can't imagine the CHF to rise even more. Not a good investment, unless you're really desperate and fear some hyperinflation.

The other strong Euro economies, like Norway or Denmark are mostly about oil. And oil prices will decline in the coming crisis - at least in the timeframe that I am talking about.

This leaves me with exotic investments like Swedish bonds of which there aren't that many or some Asian bonds of which I don't know much.

These are the times, I'd really like to save and reload. Or at least be able to make a new char ;)


  1. For many years land has been the best way to invest but it's awfully saturated now.

    Investing in a pension might be a good deal depending on your circumstances. Sure it will suffer when the economy does but so will pretty much everything.

    If you're very confident of a particular company you could buy shares but that's always a gamble.

  2. Buy a gun factory. Recessions are good for the war business.

  3. Or at least be able to make a new char

    I believe that's called fatherhood ;)

  4. Not this time, Klepsacovic.
    US will cut defense spending even before they increase taxes.

    John, children don't work. They never do what you want and the more the ask them to be reasonable the less reasonable they are :)

    Stabs, I can always keep cash. To invest into something that declines in addition to inflation would be really stupid.
    I am pretty confident of a few companies. But as you say .. this is risky.

  5. Or buy hydrogen. It's great for fuel cells, and exactly 79 times less complicated than gold! ;)

  6. Actually, stuff doesn't get cheaper in Switzerland. It's the importers who make a killing at the moment.

  7. Just drive a few hundred kilometers, Kring. It's not like Switzerland is THAT big ;)

  8. The US isn't the only country buying weapons. Beside that, there were always much better markets for selling shady knock-off weapons, such as Afghanistan and Texas.

  9. Just a short comment on your idea about the Danish economy:

    Oil is a pretty small part of it, much more coming from f.eks. natural gas and various exports