Author Topic: 2006 to 2008 was calm, until people started buying entire dealer inventories  (Read 1012 times)

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Offline badon

I was just remembering what the 2006 to 2008 period was like. Things were pretty calm until 2008, when we started hearing stories about people walking into a big mega-dealer like Apmex or PandaAmerica, and buying their entire available inventory. We haven't heard stories like this for a long time...until now. This time, we got the opportunity to watch it happen, and I think it's likely we'll see or hear about it happening again in the near future. The big unknown is what the declining economic situation will be like, and how the world governments will deal with it.

The only thing that seems certain is the government's money is not a safe store of value. Wealthy people will try to put their money into hard assets like gold. It's harder for the governments to steal the money if it's in hard assets, so in 1933, the USA government made gold illegal, and they seized as much of it as the weak-minded would hand over to them. If negative interest rates don't work because people are buying hard assets, will the governments start making laws to stop people from getting rid of the government's money?

The big buyer that has been raiding the market for rare Chinese coins lately has complained about one of his banks refusing to clear his payments, despite the fact his account is one of the fattest at this particular bank. In discussing this with him, I got the distinct impression that something is wrong at the bank. Maybe it's insolvent? Maybe they have other reasons to delay or obstruct withdrawals? In any case, the buyer learned just how quickly other people can take control of his money. He finished his transactions using another bank account, but what if that other bank refused to fulfill its obligations? What if the governments pass laws limiting how much money you can withdraw from banks per month? What if they start freezing bank accounts, or just outright stealing the money?

Get out while you still can.
« Last Edit: 2016 Feb 17, 05:32:01 AM by badon »
 

Offline badon