vincecate wrote:Why did you sell your inflation hedges now?
I was primarily a real estate investor for a long time. My expertise is there. In the early 1990s I saw gold and silver were cheap relative to real estate, especially silver. It may have taken 30,000 ounces of silver to buy the median priced home. Those are the terms I think in having worked in real estate.
This became more true 10 years after that. At that point, it may have taken 40,000 ounces of silver or 600 ounces of gold to buy the median priced home. I sold my real estate and put some of the proceeds into gold and silver. In 2007, I reduced that, selling about 60%.
Today it takes perhaps 3,000 ounces of silver or 100 ounces of gold to buy the median priced home. Gold and silver are no longer cheap vis a vis real estate. In fact, they are extremely expensive vis a vis real estate on a historical basis. Therefore, for my money, any inflation hedges I do buy in the future will be residential real estate, which also will produce an income, though less if there is deflation.
Real estate priced in gold and silver has already crashed 80-90 percent.
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.