Reply With Quoteso its down 8% in 5 years, great investmentOriginally Posted by Organ Morgan.
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so its down 8% in 5 years, great investment
It's a simple picture to understand, or so I thought.
Stick with your depreciating fiat money. If you want to become poorer and poorer then jolly good luck. If you've been paying attention to what Junker and BoE officials have stated of late, which I somehow doubt (not when there's important Packers news to keep abreast of), then you're going to be much poorer still come the end of next March.
Organ, I've got a couple of questions for you about gold. Where do you hide yours and what is your address?
I don't think that phrase really applies to a picture of a table with words and numbers in.
I prefer the other, less recognised phrase - 'A picture of a table of words and numbers says as much as the words of numbers do'
Anyhow, Eric, as you likely know gold doesn't do anything, it always remains exactly the same. The value of currencies rise and fall against it. There's an old saying which goes something like: put 10% of your wealth into gold and hope it performs badly.
Physical gold is money and an insurance policy. From the picture you'll discern that an Argentinian who had converted 10% of his dough to gold at the turn of this century would be wealthier today than then despite the precipitous fall in the spending power of his 90% cash.
Have you any investment advice to share?
What good will gold do me in the apocalypse?
Apocalypse, what apocalypse?
I suppose you have nothing to share, then?
I must say your forte appears to be submitting posts that are of no interest whatsoever. Are you Croesy's protege?
A) I was doing you a favour, this thread was falling on its arse and you were clearly lurking around looking to explain your findings to anyone who might have a spare minute.
B) Why is this shit in the politics forum? Off you go to the everything else forum you rapscallion.
It's on this forum because there's not a Monetary one and the main forum is preoccupied with men in shorts humping a ball about.
So once again, have you any investment advice to share?
I'm a fan of all hard assets... in fact pretty much anything that can't be produced from thin air such as land, property, art, wine, etc.
What do you think about those mugs who wave certificates saying they've got gold but it is being stored for them? Do you think that gold really exists? Anyway that certificate will be no use in an emergency. I imagine you collect coins. Which ones do you prefer?
I've noticed that high quality tools and antique musical instruments have done well where the currency has collapsed. I don't think wine is a good choice. There are too many scams in the wine trade. Ditto art.
I'm no fan of paper gold; it has to be the real thing in one's own possession so there's no counterparty risk involved. Those with paper claims will be paid off with fiat when/if there's a massive crisis. Deutsche Bank did that recently to clients, they have also admitted to suppressing the gold and silver price along with HSBC, etc, by creating naked shorts. Russia Today viewers would know all about it, but (surprise, surprise), the Beeb et al looked the other way.
Sovereigns and Britannias are CGT free, and as the latter have a similar small premium to what krugerrands have then that coin would be my top pick.
No, the gold they don't have, they just pretend to. Most people don't care, it's a bet to them and have no interest in taking delivery. The Yank's supposed holding of 8,000 tonnes hasn't been audited for 60 years. The Federal Reserve Bank has never been audited in its 103-year history. Cynics might think they have something to hide.
With all this new found wealth maybe you could make a bet?
P.S. What's the relevance of 1999 when you've been tipping it since 2011. I'd guess property in that time has increased about 30%, you'd might as well burn your money.
Things like wine and art are only useful if you're one day going to sell them. If currency becomes worthless, as you predict, then how is rare art going to help you?
Care to explain how gold just stays there. It fluctuates just as money does, it goes up and down in value AND it fluctuates at the same value to the value for USD. Your "picture" of words shows it fluctuates. Or are you simply saying its an inert metal?
Should we also invest our money in grain? That has gone up. Though its chemically active. An argentine holding an assets valued on the global market and it would have increased. That could be coal, flour, or even sheep, not just gold. Not sure exactly what your point is?
Is it that fluctuating currency can help investments, or more simply currencies fluctuate? Currencies fluctuations can help save an economy. It does have a potential "bomb" of inflation. But the idea is the economy can recover off a weakened currency and therefore an increase global competitiveness. Like we are seeing in the UK. Our goods are so cheap that our exports will be having a boom time.
And why do you think Argentinian currency has collapsed?
Could it be because there is no enough money? So your fiat money, or lack of, it what has caused the collapse! Shame you can eat Gold
Last edited by Barry Dragon; 18-10-16 at 08:20.
How much is money down due to QE during the same period?
Umm, that will still apply to gold. So money buys 20% less now than in 2008. But that still applies to gold. So down 8%, plus that value is worth 20% less.
So £1000 now buys £800 worth of goods, but £1000 of gold only buys £736 of goods.
:homer:
What is money? Or, what should money be? I reckon most people would say it should be a means of exchange and a store of wealth. It's accepted as payment because a receiver know they can pass it on to someone else as payment for goods or services. It works for as long as people have that confidence. The world's been on a purely fiat money system (not backed with precious metals) since 1971. Coincidentally, or not, that's when government spending and debts and inflation begun to spiral because then there was no limit to how much money could be created as no-one could visit a bank to redeem their paper money for gold or silver.
Here's an example. In 1971 in the UK a single person's basic state pension was £6 per week. Today it's around £115 as it increased each year with the official inflation rate. Put another way, £115 pound today has the spending power of £6 45 years ago. Alternatively, someone who placed £115 under a mattress then would still have £115 but it would have lost 95% of its spending power. An ounce of gold priced in pounds averaged £39 in 1971. At yesterday's close, that same ounce was worth £1,030. Do the math, as the Yanks say.
That is true for everything. cash money, gold Tulips. Its not just cash money.
Case in example. GBP Sterling and US Dollar. Hold $100,000 under your mattress back in 2006 and it was worth a mere £50,000 now its worth £80,000. Your example is just as weak as currency.
If india did not have an appetite for gold, or our phones didnt need gold, then gold could easily be worth $400 an ounce or less. Gold is not subject any less risk than cash money. Why do you think its void of the same risks?
Is gold not just another case of the Netherlands Tulips? Arguably there is more of a finite resource of gold, but there is still many many many tonnes of gold in the ground to be extracted.
Holding cash money under your bed might lose its value, but if you held a tonne of tulips under your mattress from 1600 your fortune is now worth a tenna.
Just because demand for gold has increased faster than its supply causing a price increase does not make it any different to the value of the dollar increasing. Its the same principle. And both values can fall. The value of an asset changes, just like money does.
And if you held that £39 gold as cash, in an account that pays inflation level of interest it could now be worth £25,647.96.
Pensions have not necessarily raised inline with inflation btw.
Go figure, you will see the maths and the math show that money earning interest is better than gold!
Source: http://www.thisismoney.co.uk/money/b...nged-1900.html
Last edited by Barry Dragon; 18-10-16 at 10:07.
Ignore that. My maths isnt working. But the post above is still right.
There's only a finite amount of gold. I think there's circa 180,000 tonnes above ground. Most of it is in private hands in the form of jewellery. That equals less than one ounce per person alive today. Something like 2,500 new tonnes of the stuff is mined annually.
I didn't state gold carries no risk. Why make that bit up?
The point I've been making is that gold has been a stable store of value for thousands of years, and it cannot be printed. It has never been worth nothing. But scores of paper currencies have become worthless.
Any prudent homeowner takes out an insurance policy on their property in case it burns down or suffers some other calamity. Putting 10% of one's dough into gold works the same way except the insurance can be redeemed one day: it's not dead money.
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