Temporary Safety in Norwegian Kroner

By Hans Lysglimt

The markets have decided that the Norwegian Kroner is a safe haven in world wide economic collapse. More undeserved good luck to us Norwegians, once again. The Norwegian Krone gaining strength, while the previous safety darling, the Japanese Yen is falling out of favor having dropped 5% against the Dollar in just days.

Everyone in Norway holding savings in Kroner should encourage this. This is a last opportunity for Norwegians to preserve the value of their savings. International investors, please come here and buy our Kroner – buy all you can! Thank you very much!

Yes, this can be a true blessing for Norwegians, provided they use the strength of their savings to move into gold while the NOK is strong. If they do nothing they will gain nothing from their temporarily strong currency. Norwegian savers all of a sudden have something that is in world wide strong demand, you should always take advantage of strong demand for whatever you have to sell. You see, this strength will not last – just as the NOK fell out of vogue last year, into vogue now it will again go out of vogue soon enough. The only right thing to do is to use the temporary strength to sell and diversify, primarily by buying into gold.

Strong paper currencies is always a temporary phenomenon, and should always promptly be taken advantage of – not restfully consolidated as something god given and self evident. Paper money has an intrinsic value of zero, nothing. So whenever you see your paper money gaining strength, that is a call to get rid of some and move into something real.

Three years ago even the Icelandic Krona was in vogue, in great demand world wide due to the 14%+ interest rate you got on it. Reykjavik was more expensive than New York, I was there – it was madness. Armani suits and Porches – in Reykjavik! People in Iceland soon took a strong currency for granted, trusting their own local currency. Believing in the “Icelandic miracle”. I even confronted economists with it, when they tried to convince me of their collective bullshit story – I gave up, and let time teach them the lesson instead. It is an extremely predicable indicator to sell whenever groups of people start believing their own bullshit. It always will lead to excess and a crash. Which reminds us that despite the recent downturn the world’s biggest pile of self believed bullshit is still in the US, by far, predictably fore saying the worlds biggest crash still to come.

Did the Icelanders use their temporarily strong currency to diversify and buy gold? Nope.
Will the Norwegians now? Nope.
Will the Japanese? Nope.
Will the Europeans? Nope.
Will the Americans? Nope.

For Icelandic investors, Mexican and Swedish alike it is already to late, never again will their currencies have relative strength to allow them to buy into gold and have a chance at preserving their wealth through the 5-20 years of depression ahead – it is too late for them. They will remain poor. For US investors it is still possible, but they seem oblivious to it, US investors do not realize how strong the US Dollar still is and still take their wealth for granted – most of them will be hammered to the ground soon enough, millions totally wiped out, just like most Icelandic investors – all before seven years have passed. So be it.

So we tell our Norwegian readers:
SELL!!! you Kroner now that you have gotten this last windfall luck of a strong currency and buy into gold! ARE YOU LISTENING? SELL YOUR NOK! BUY GOLD!!!
Will they do it? Only a very very few will – but people are already beginning to thank yours truly for similar advice given years back – this will be the kind of advice we will receive champagne for, all in due time, all in due time.

We do not much like the “preserve wealth” speak of many investment advisers by the way. It is as if present wealth is taken for granted, we’re all rich right? Well, everyone is not rich. And if you don’t have anything to invest, gold is not an option, no matter how attractive. So I will in future also speak more to people who do not have wealth to preserve, who need to create wealth first. How do you create your initial wealth in this depression? That is the question for millions of people, including yours truly, we are not independently rich – not yet.

I hope you take the time to read the comments to the post here on Farmann. We are in this for the long haul, decades. The regular readership is building, day by day. There are now hundreds of regular daily readers of Farmann, and there are good comments to pretty much every post. Read the comments, there is a lot of wisdom in them.

Always use several sources to make up your own mind on investments. I would never encourage people to listen to my views alone. Always a second opinion, that is what makes investing so hard – there are always more than one view. There are always two sides to a deal, a buyer being positive and a seller being negative. Caveat Emptor!

We are seeing a few sunny days in Oslo now, and I will take advantage of this to make a few new videos. Watch out for them on the Farmann YouTube channels.

Hans Lysglimt
Oslo, Norway. Feb 26. 2009

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3 Comments

  1. jimmy
    Posted 26 February, 2009 at 5:05 pm | Permalink

    nice to read your comments, farmann. Very insightful. Looking forward to some of your youtube videos.

    Looks like gold and silver have reached a temporary us dollar top and retreating. Don’t really agree with your view now’s the time to buy gold or short the S&P on margin. This market is still very rigged… imo. Hard to say which way will go. Personally I have a very high proportion of assets in physical gold and silver, but am trying to build up my cash position.

    Do you follow Prechter’s stuff @ all? He’s saying gold’s gonna follow bonds and come down. US dollar will be the strongest currency. We’re in deflation that will last at least another 2 years.

  2. Jolly D
    Posted 9 June, 2009 at 9:22 pm | Permalink

    Perhaps your advise is good for fellow Norweegans but if we are going to continue into a multi-year depression then everything will go down. Isn’t this so in a “Depression”.
    Gold would only be a hedge against Inflation, which will likely come at the end of the deflationary phase, especially to USD.
    Plus, the world currencies are all fiat and not linked to a gold standard so I still don’t quit understand the logic of those who are (selling) saying buy gold now.

    Respectfully,

    Jolly D

  3. Posted 11 June, 2009 at 3:12 pm | Permalink

    To: Hans Lysglim
    Hans,
    Where can I find more of your recent articles?
    Also, do you have a newsletter?
    Regards,
    Christine