Comments on: Breakdown of paper gold market? Maybe not quite yet. http://sovereignspeculator.com/2008/10/12/breakdown-of-paper-gold-market-maybe-not-quite-yet/ Thoughts on the markets and the decline of the west Mon, 20 Dec 2010 20:35:35 +0000 http://wordpress.org/?v=2.6 By: Mike http://sovereignspeculator.com/2008/10/12/breakdown-of-paper-gold-market-maybe-not-quite-yet/#comment-453 Mike Tue, 14 Oct 2008 01:38:07 +0000 http://sovereignspeculator.com/?p=1909#comment-453 Funny -- I sent it to the email you provided to log in to comment. Anyway: I really do not have the answer here. All I can tell you is that you want the stuff in your name, with assurance that it is yours for the taking if the institution fails, though you may have to be there in person to take it. My own experience is that the gnomes are just now waking up to the magnitude of the situation. They have a great deal of respect for US institutions, and many are still fairly prudent as far as modern bankers go, so it is hard for them to see just how horrendously their counterparts have messed up. Also, Swiss real estate is very rich, still floating atop a bubble from super-low fixed mortgage rates a few years ago. It is my understanding that old-fashioned local lending is the bread and butter of many of these banks, and while these loans are not sub-prime, defaults will probably soar like everywhere else. The best solution of course is to have a plan to not be in a politically unstable place as it falls apart, but to join your dough somewhere safer, and to hold much of it in your own possession. Not feasible for everyone, no, but if you have enough to be thinking along these lines, there are very strong reasons to take the leap. Funny — I sent it to the email you provided to log in to comment. Anyway:

I really do not have the answer here. All I can tell you is that you want the stuff in your name, with assurance that it is yours for the taking if the institution fails, though you may have to be there in person to take it.

My own experience is that the gnomes are just now waking up to the magnitude of the situation. They have a great deal of respect for US institutions, and many are still fairly prudent as far as modern bankers go, so it is hard for them to see just how horrendously their counterparts have messed up. Also, Swiss real estate is very rich, still floating atop a bubble from super-low fixed mortgage rates a few years ago. It is my understanding that old-fashioned local lending is the bread and butter of many of these banks, and while these loans are not sub-prime, defaults will probably soar like everywhere else.

The best solution of course is to have a plan to not be in a politically unstable place as it falls apart, but to join your dough somewhere safer, and to hold much of it in your own possession. Not feasible for everyone, no, but if you have enough to be thinking along these lines, there are very strong reasons to take the leap.

]]> By: Bjorn http://sovereignspeculator.com/2008/10/12/breakdown-of-paper-gold-market-maybe-not-quite-yet/#comment-452 Bjorn Tue, 14 Oct 2008 01:35:32 +0000 http://sovereignspeculator.com/?p=1909#comment-452 Mike, Sorry for the trouble, but your email did not make it to me. Mike,

Sorry for the trouble, but your email did not make it to me.

]]> By: Mike http://sovereignspeculator.com/2008/10/12/breakdown-of-paper-gold-market-maybe-not-quite-yet/#comment-451 Mike Tue, 14 Oct 2008 01:21:36 +0000 http://sovereignspeculator.com/?p=1909#comment-451 Hi Bjorn. I emailed you. Hi Bjorn. I emailed you.

]]> By: Bjorn http://sovereignspeculator.com/2008/10/12/breakdown-of-paper-gold-market-maybe-not-quite-yet/#comment-450 Bjorn Tue, 14 Oct 2008 01:05:59 +0000 http://sovereignspeculator.com/?p=1909#comment-450 Hi Mike, I'm sending this again, because it looked like it did not get through on your site. I've talked with some brokers in Switzerland, and to be honest, I was not impressed with their understanding of the times. One group did seem to be on top of what is happening, and they dealt with precious metals. I was wondering if you have found there to be a number of good places who deal with physical gold or if the options are extremely limited. It seems that all hope ultimately lies in Switzerland, but even knowing that is not sufficient. I've read that some Swiss banks are in trouble too. The safe haven zone in this world is tiny indeed. Hi Mike,
I’m sending this again, because it looked like it did not get through on your site. I’ve talked with some brokers in Switzerland, and to be honest, I was not impressed with their understanding of the times. One group did seem to be on top of what is happening, and they dealt with precious metals. I was wondering if you have found there to be a number of good places who deal with physical gold or if the options are extremely limited. It seems that all hope ultimately lies in Switzerland, but even knowing that is not sufficient. I’ve read that some Swiss banks are in trouble too. The safe haven zone in this world is tiny indeed.

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