Mate we are all just circling the drain,as for the wine i can only drink the $2.99 specials not like the $1000.00 plus bottles you Gold Silver Barons drink.Where do I buy them?
If you take things to their logical conclusion we are all doomed, resistance is futile. Maybe you just need enough gold to buy a few cases of good wine: The more gold, the better the wine.
Gold price over $US1600/ounce
- Thread starter Ajax
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They dropped my 6 month stock up:
http://www.adelaidenow.com.au/m-in-wine-dropped-on-wharf-a-heartbreaker/story-e6frea6u-1226099369520
it would be prudent to hold a good amount of gold and silver considering the pace these printing presses are running.
1+1=2.
printing + inflation = dollar devaluing.
you can't re-engineer that equation. you can make it look better - say
2[0.25 + 0.25] + 4[0.25] = 100 ÷ 50.
but the answer is the same.
1+1=2.
printing + inflation = dollar devaluing.
you can't re-engineer that equation. you can make it look better - say
2[0.25 + 0.25] + 4[0.25] = 100 ÷ 50.
but the answer is the same.
Physical Gold is a security asset (insurance of sorts), not purchased for the income it returns.
But I'm currently holding a Gold stock whose:
- Share price is roughly 70% backed by cash in the bank
- Have Gold tenements/projects & a royalty stream that is paid in Gold, so exposed to upside
- Is paying a 10% fully franked dividend based on current share price
Yeah gold is a different asset class with different reasons/market forces. But that wasn't my point.
In times past maybe, but not in the current environment.
In the current environment, gold is purchased because of the sustainability of its pricing trend, pure and simple.
There are plenty of positions in gold that dont give two flying ****** about the logic in holding gold. If the major trend is broken, these guys will be out the door. More importantly they will go from long positions to shorting it.
So i say again play the major trend, congratulations to those who got in early, but be careful of reading the crap behind the theoretical logic of holding gold.
And here is a free heads up, there will come a time when global interest rates increase significantly (dont ask me about the timing of this, only that it will occur sometime), when it does the allure of gold as an investment will diminish (as the opportunity cost of holding the risk free asset being cash, decreases).
the fundamental reason why gold is a 'different asset class' with current popularity is because
(a) the major alternative asset classes being property and shares are in a secular bear phase
(b) the risk free asset class (cash) is being artificially depressed.
Its really funny, i find those that present an intelligent argument against some of the perma bull extreme arguments for investing in residential property, possess that same inherent bias when it comes to investing in precious metals.
The *******s at Dan Murphys have put up the price of my tipple to $5.
I cant get the ACCC interested either.
Agree and disagree. When I said physical Gold I meant physical Gold, not ETFs, Warrants, Futures or any other paper traded proxy that speculators use. I would suggest most buying physical Gold are not doing so to speculate. Further to this if you believe that the market is now just trading the trend then how do you explain recent price action? We are not seeing Gold rise higher during calm markets, more recently it has been in response to events that increase systematic risk and the potential for sovereign default on a grand scale.
If we saw that occur anytime soon it would probably be in response to extreme inflation in which case Gold would probably continue to perform very well until they jacked interest rates above inflation to control it. In that event we may see complete collapse in countries that aren't able to handle the large debt burdens they carry.
Also this isn't the 1970s, while I do agree that Gold will likely peak in parabola and then collapse, I also see the possibility that Gold may play some form of monetary role in the not too distant future which could prevent or perhaps just reduce the severity of the collapse in price.
Given current global economic environmental factors I personally believe you would be nuts not to have a little Gold and cash (out of the bank) on hand in case of unexpected events.
I think gold as an upcoming global currency base is a given. If it happens, I would expect the 8-10 k range /oz.
Have you forgotten the lessons of Bretton Woods?
Think it will only be an interim crash if so.
The US won't default for long, unless that's the idea.
Have people been looking at the increase in debt levels during periods of republican and democrat government.
One would assume that when the democrates where in power, debt would have risen faster, but it appears not, its under republican government that debt has risen faster.
One would assume that when the democrates where in power, debt would have risen faster, but it appears not, its under republican government that debt has risen faster.
How about something that is a low risk play on gold.
We all look at the gold price going up, but its in US$, not australian dollars. In australian dollars the rise has been far less spectacular over the last year.
In the last year gold has gone up by 35% odd in US$ terms.
However the Australian currency has gone up by about 25%.
So in australian dollar terms gold has appreciated by about 10%.
So hear is my idea:
Just put it in a term deposit earning around 6%.
Could it achieve a good proportion of golds return with far less risk?
Several other points to consider:
(a) its no use highlighting longer historical periods for comparison. Future returns will be governed by future acts, not historical.
(b) the AU$ is correlated to gold in US$ terms, but more importantly AU$ in the current environment is being treated as a 'reserve currency'. The same international risk factors are being used as a fundamental reason to own gold also act as a fundamental catalyst for increasing exposure to the AU$.
Just something to reflect upon.
We all look at the gold price going up, but its in US$, not australian dollars. In australian dollars the rise has been far less spectacular over the last year.
In the last year gold has gone up by 35% odd in US$ terms.
However the Australian currency has gone up by about 25%.
So in australian dollar terms gold has appreciated by about 10%.
So hear is my idea:
Just put it in a term deposit earning around 6%.
Could it achieve a good proportion of golds return with far less risk?
Several other points to consider:
(a) its no use highlighting longer historical periods for comparison. Future returns will be governed by future acts, not historical.
(b) the AU$ is correlated to gold in US$ terms, but more importantly AU$ in the current environment is being treated as a 'reserve currency'. The same international risk factors are being used as a fundamental reason to own gold also act as a fundamental catalyst for increasing exposure to the AU$.
Just something to reflect upon.
A much easier way to get exposure to the price of US$Gold without currency risk would be to use the (fairly recently introduced) Betashares hedged product (QAU):
http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=QAU
It's designed specifically to track the US price of Gold. Doing a reasonable job since it was introduced in May (see chart I attached comparing QAU to Gold in USD).
I guess it depends on why you are buying Gold to begin with. Holding Aussie dollars in a bank account is no guarantee of safety if the worlds financial systems go to hell in a hand basket...
Attachments
Probably, for making money...
But it would be cool to own, I dunno, 100 oz of the good stuff if I could
I am trying to create a strategic game plan.
Very difficult in the current environment.
Economic news positive:
(a) AU$ rises, risk of interest rates increasing, stock market negative
Economic news negative:
(a) not significant change in AU$ (small trading risk off, but no structural change)
(b) stock market negative, property negative
Global Central bank concerns
(a) AU$ rises (note how the AU$ is rising through 'worry' unlike last year, this shows that traders want to get long AU$ as a perceived less risky currency.
(b) negative stocks, negative property
Attempting to diversify risk through overseas shares
(a) currency risk if AU$ keeps rising
(b) risk that overseas shares are 'reasonably priced'. The fundamental catalyst that changes the course of the AU$ could also have an impact on overseas shares.
The question out there is what if the don't dodge the 2nd August and take China down with them,it's gotta be cheaper then world wide war zones..