Financial crisis, it aint looking good

[BigD]

Manufacturing output as a percentage of GDP for Germany is about 21% and it's about 13% for the UK so maybe not as high as you might have guessed for Germany (China is in the mid 30s). It is great for Germany until you have a global downturn and folk stop buying stuff.

Anyway, now that it has gone tits up most of the populations of the developed World are paying for it not just us, well maybe except for the Greeks.

Interesting fact I heard today was that of Germanys exports China is the biggest buyer of these exports. Well I thought it was interesting....

Fundamentally the companies in these freefalling indices, FTSE, DAX, DOW etc are not worse than they were before the markets dropped, it's sentiment and panic that is driving them down, mostly. Great buying opportunity for the long term!!

Another interesting fact I heard today was that Gordon Brown sold the UK's Gold stocks just before the gold price rocketed, good move Gordon!!

[kenny]

Another interesting fact I heard today was that Gordon Brown sold the UK's Gold stocks just before the gold price rocketed, good move Gordon!!

Not only was it before the price soured it was during a time when gold was at one of it's lowest values for many years IIRC. one of many Gordon Clown financial calamities.

[BigD]

Another interesting fact I heard today was that Gordon Brown sold the UK's Gold stocks just before the gold price rocketed, good move Gordon!!

Not only was it before the price soured it was during a time when gold was at one of it's lowest values for many years IIRC. one of many Gordon Clown financial calamities.

Between 1999 and 2002, Mr Brown ordered the sale of almost 400 tons of the gold reserves when the price was at a 20-year low. Since then, the price has more than quadrupled, meaning the decision cost taxpayers an estimated £7 billion, according to Mike Warburton of the accountants Grant Thornton.

[Dominic]

Gordon Clown

He must have seen this on day time TV; http://www.cashforyourgold.co.uk/

[Sanjøy]

IIRC there £21m of silver sitting in a wreck just off Ireland.

Father in law sold all stocks and went in to gold when it bottomed out, he is a very happy man and has been banging on about bust Amurca for years when I muted buying apple shares pre Iphone.

[tut]

200 tons Sanj worth $200M.

tut

[robin]

Gold is only worth something when somebody else thinks it is. It has little or no intrinsic value. So moving wholesale into gold might seem like an inspired move, but remember that if it can quadruple in value it can also be decimated ...

Cheers,
Robin

[tut]

Yes, it would be a brave man to buy into gold now at the price it is sitting at. If/when the economy improves again it is likely to go down.

tut

[BigD]

Gold is only worth something when somebody else thinks it is. It has little or no intrinsic value. So moving wholesale into gold might seem like an inspired move, but remember that if it can quadruple in value it can also be decimated ...

Cheers,
Robin

I'd be selling Gold and buying equities at the moment, if I had any Gold to sell.

It's the old story of supply and demand (and greed). People buy into things when they are on the up or near the top which creates a bubble, (remember the tech boom), if you can be brave enough to do the opposite to the majority you'll do well.

My comments are personal opinions and do not constitute advice!

[campbell]

I'd be selling Gold and buying equities at the moment, if I had any Gold to sell.

...

if you can be brave enough to do the opposite to the majority you'll do well.

Neil Woodford at Invesco appears to be doing mostly the latter, and has done since we embarked on our PEPs/ISAs with them to support our new mortgage nearly 13 years ago. Inspired (or worried?!) by latest developments in "the economy", I got some updated valuations prepared this week. His funds appear to be holding up well, and because we're on a monthly subscription basis, we are automatically taking advantage of the weak market.

Next stop ... pension statements That always feels a bit messier but it's got to be done!!!

[Sanjøy]

Gold is only worth something when somebody else thinks it is. It has little or no intrinsic value. So moving wholesale into gold might seem like an inspired move, but remember that if it can quadruple in value it can also be decimated ...

Cheers,
Robin

I guess but at least it is a finite resource and an investment in something tangible as opposed to investments based on market movement of other markets. The whole lot is a dirty ponzi.

Off to arrange a massive 340r meeting with a can of petrol to turn the remaining cars in to Dinos.

[pete]

There is a podcast by the American public radio network called "Planet Money" which I can't recommend enough.

They bought a mortgage backed security (using the presenters' own money) to illustrate the story of where all the money had gone (a toxic debt). When they sold it, at a massive loss, they bought gold instead to illustrate reaching the same conclusion that Robin describes slightly more succinctly.

Off to worry about what is going to happen...

[Rich H]

How about useful metals instead?
I read about palladium and platinum being good bets as they are not only rare and finite but they are used in loads of hi-tech things so are atually consumed aswell as just stored as bullion.

[BiggestNizzy]

I have decided to put all my money in things I want.

[alicrozier]

I have decided to put all my money in things I want.

Top work! Booze, fast cars, loose women...blow the rest.