Interest Rates on Hold

Thank you Glenn Stevens.

After being made redundant late last week, I though for sure I was going to get a kick while down.

I thought that I was going crazy…..

It felt like everywhere in the media was reporting an almost certain rate hike but the reality is…… I think it would have done very little to curb inflation driven by international demand for our resources.

As far as uncertainty in the global economy goes, im suprised that a rate rise was even on the cards. The US dollar is tanking, Europe is in pretty bad shape and I feel that we are currently economically at our short-term peak and things will deteriorate from here. If China, whom is very closely linked to the US monetary system suffers from significant further losses in the US dollar, our resources boom will be the first thing on the chopping block, if  that goes….. well its almost the only thing underpinning our economy at this point. Take a look at the true US deficit/national debt and divide that by the population if you want a small shock.

A small rant… My apologies, im not an economist and seldomly post here but given the instability globally at the moment I cant believe that a rate rise could be considered unless we move into a more currency based inflation/hyperinflationary model, then we would all pray that we fixed our rates.

Id love to hear other peoples' opinions on this, tell me that I am wrong/crazy.

Cheers

Thank god for that!

I too am investing in silver….. fairly heavily. A little more speculative than gold i know.

the next round of QE, i believe will do little to jump start the US economy….. Unless its significant, which could cause the pendulum to move heavily into they hyperinflationary scenario. I dont think the US will stand alone in that environment and it will have global implications.

I am reassured by your post. My strategy, although without Gold is similar. I am carefully considering increasing my holdings by using a large portion of $$ from my offset account. I know if I had of done that 30 days ago, id be well ahead regardless of whether it was in Gold or Silver and it looks as if there is still a lot of upwards movement to go.

I am interested to see, if people are buying RE at the moment…. it does seem a little quieter around this forum than it used to be.

Also, Kong, if you have finance on property, are you fixed or variable? I am currently variable but watching closely for a good opportunity to fix for at least 3 years. Just interested to see your thoughts.

thanks again!

Hey,

Consumer debt = nil
Variable finance = still considering going fixed.

Currently I am investing in physical silver. I have set a goal and will have achieved that goal within the fortnight. After that I intend to look into more potentially spec stocks. I am yet to do thorough research for prospects on that. I have been focused on building my physical as a base and im not sure that I will move into stocks, but I do believe resource backed stocks have to be a fantastic opportunity over the coming few years.

I may be the only one in Australia, but i believe that interest rates may hold beyond Christmas may have one or 2 rate rises after that and in fact by mid next year -drop off slightly. If there is a drop, that is when I would like to fix. It is an optimistic belief i know. Willing to eat my own words.

Cheers

Dependant on your capital, location and your ability to securely store Precious Metals, there are a couple of options.
The number of bullion dealers in Australia is growing at a good rate with presence in most states/capital cities.

Perth mint also offer a few services, you can purchase online/over the phone and they will ship to you(with insurance). They also offer a storage facility i believe.

Otherwise Ebay is an option which i wouldnt recommend due to increasing fraud-like activity, you could do a search for forums in Australia that are focussed on precious metals, there are always deals going there by current physical holders of Gold and Silver.

Good luck.