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AUSI DOLLAR & SA rand
guru267
#1 Posted : Tuesday, June 21, 2011 1:06:58 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
For most Africans who can't get their hands on gold bullion these are two perfect currencies to hold incase US & Greece default on their debt..
Mark 12:29
Deuteronomy 4:16
msimon
#2 Posted : Tuesday, June 21, 2011 4:54:26 PM
Rank: New-farer


Joined: 8/23/2010
Posts: 63
Location: Kampala
guru267 wrote:
For most Africans who can't get their hands on gold bullion these are two perfect currencies to hold incase US & Greece default on their debt..

Indeed, this would hold and make alot of sense. Only challenge is that what happens when the commodity bubble bursts? Plus at their current prices,they are tending above equilibrium and toward being expensive. But well put all the same.
But i would prefer derivatives instead of the hard currencies. Because they would mitigate the impact of excessive pressure on the euro and the dollar. I don't know why most local importers haven't looked into these. Especially when they are losing out on two fronts. The first being the high price they are buying the dollar at currently and the low purchasing power they dollars carry in the foreign land(out of africa) where they buy their goods from. Should these conditions persist, we shall have to think of barter as a way of avoiding loss in purchasing power. A chinese friend of mine has mastered this. This dude was importing chinese products and converting his sales revenue to hides which he took back to china, sold and got yuan to buy more goods. He stayed on course while others lamented. But now he's crying too, ever since the government banned export of hides.
hisah
#3 Posted : Saturday, June 25, 2011 12:32:12 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
@Guru - if the US defaults, all fiat currencies will go into a tailspin! Unfortunately the dollar is the axis of the money sys.
A 'safer' bet would be the swiss franc until it is proved they got no gold reserves...

If one can get physical bullion, the better.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
guru267
#4 Posted : Saturday, June 25, 2011 1:12:04 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
hisah wrote:
@Guru - if the US defaults, all fiat currencies will go into a tailspin! Unfortunately the dollar is the axis of the money sys.
A 'safer' bet would be the swiss franc until it is proved they got no gold reserves...

If one can get physical bullion, the better.


@hisah the SA rand and ausie dollar are backed by the gold sitting in the earth of the countries they represent and also the countries are fiscally sound..

Switzerland is one of the most fiscally sound economies out there.. But that said there is one problem.. I do not think there is any central bank in the world except maybe US that holds enough gold reserves to withstand a collapse in fiat money and the sudden burst in demand for gold that will follow this event..
But the gold producing countries on the otherhand will maintain the value of their currency and can even end up as the reserve currency..

Mark 12:29
Deuteronomy 4:16
QW25071985
#5 Posted : Saturday, June 25, 2011 1:35:27 PM
Rank: Veteran


Joined: 3/25/2011
Posts: 946
OH boy here goes the alarmists !!!!!!!!!!!!!!!!!!!!!!!!!
guru267
#6 Posted : Saturday, June 25, 2011 4:38:09 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
QW25071985 wrote:
OH boy here goes the alarmists !!!!!!!!!!!!!!!!!!!!!!!!!


No alarmists just a bunch of contingency planners here
Mark 12:29
Deuteronomy 4:16
young
#7 Posted : Saturday, June 25, 2011 4:59:41 PM
Rank: Elder


Joined: 6/20/2007
Posts: 2,037
Location: Lagos, Nigeria
guru267 wrote:
QW25071985 wrote:
OH boy here goes the alarmists !!!!!!!!!!!!!!!!!!!!!!!!!


No alarmists just a bunch of contingency planners here



Spots on. Today's decision is tomorrows's realities.

Investing drectly in SA or AUX markets is also an option.
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
hisah
#8 Posted : Monday, July 11, 2011 7:41:04 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
guru267 wrote:
hisah wrote:
@Guru - if the US defaults, all fiat currencies will go into a tailspin! Unfortunately the dollar is the axis of the money sys.
A 'safer' bet would be the swiss franc until it is proved they got no gold reserves...

If one can get physical bullion, the better.


@hisah the SA rand and ausie dollar are backed by the gold sitting in the earth of the countries they represent and also the countries are fiscally sound..

Switzerland is one of the most fiscally sound economies out there.. But that said there is one problem.. I do not think there is any central bank in the world except maybe US that holds enough gold reserves to withstand a collapse in fiat money and the sudden burst in demand for gold that will follow this event..
But the gold producing countries on the otherhand will maintain the value of their currency and can even end up as the reserve currency..



@Guru - This is what I'm seeing with my swissie call...

marketwatch.com wrote:

The initiative is part of “Healthy Currency,” a campaign sponsored by politicians from the right-wing Swiss People’s Party (SVP) — the country’s biggest — that is seeking to capitalize on popular fears about global financial turmoil and inflation to reverse the government’s current policy on gold.

“I can imagine that this will spark some sort of debate about gold and there may be some pressure to accept the parallel currency,” said Dr. Gebhard Kirchgaessner, an economics professor at St. Gallen University. “But it won’t have any real effect on the economy. It seems incredible to imagine that there are people out there willing to buy millions of these things.”

Switzerland, which in 2000 became one of the last countries to decouple its currency from gold, is not the only place to contemplate a change in the precious metal’s role amid controversy over government involvement in the economy. In March, Utah became the first state in the U.S. to legalize gold and silver coins as currency, while similar legislation was considered in Montana, Missouri, Colorado, Idaho and Indiana.

“I want Swiss people to have the freedom to choose a completely different currency,” said Thomas Jacob, the man behind the gold franc concept. ”Today’s monetary system is all backed by debt — all backed by nothing — and I want people to realize this.”

A good part of the enthusiasm for gold, which provokes strong emotion among many who invest in it, has to do with its price: the yellow metal has more than quadrupled during the last decade and now stands at more than $1,500 per ounce.


http://www.marketwatch.c...07?reflink=MW_news_stmp
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
hisah
#9 Posted : Tuesday, August 02, 2011 10:36:18 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
@Guru - keep watching the swissie fireworks...

Look at that yellow metal... Nuts???

@QW - I told you to keep watching on the forex thread. I hope you enjoying the show for all those weeks. Now I'm an alarmist aint I... smile d'oh!
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Cde Monomotapa
#10 Posted : Tuesday, August 02, 2011 10:52:28 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Remember the Zim economy where all soughts of metals are mined smile
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