[quote=cashflow]I’ll move the discussion back to the initial commentby socratt.
Where to hold your cash….There’s been alot of talk on here about how Gold, although at a high, will still move higher and would be a good place to move some of your cash. Any ideas on what percentage of holdings to move to gold? Also, how risky would this move be?
There’s gotta be better ideas than stuffing your pillows with dollar bills (could end up being a paper filler as the printing presses keep going off).
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Well you have a point. There will be an inflationary component. How that will interact with the deflationary component of reduced buying power is unclear. It is also unclear as to where commodities will be in terms of real wealth in the next couple of years.
Further, it is wise to remember that while the Fed and Paulson are essentially offering unlimited lines, it is not as though we are printing palettes of money (like Latin America in the 80’s, or Germany in the 30’s, or Zimbabwe now. Its unclear where the dollar will land relative to other forms of cash or commodity values. Considering that dollar-denominated items are the only wealth vehicle that are insured (though yes, in dollars) in a way I trust,they don’t seem like such a bad option.