Price of Gold and Property Prices

[santaslayer]

Hi all,

I had a friend tell me that because the price of old has increased 10% since Christmas, we are in for an imminent property market crash and general market turmoil. He was advising people to but gold stocks as they would be going up.
How true is this statement as I thought quite a number of factors influenced the price of Gold?

Thanks

 

[Player]

Hi all,

I had a friend tell me that because the price of old has increased 10% since Christmas, we are in for an imminent property market crash and general market turmoil. He was advising people to but gold stocks as they would be going up.
How true is this statement as I thought quite a number of factors influenced the price of Gold?

Thanks

From what I understand, Gold (and probably the miners) is an inflation/hyper-inflation play. We have very low cash rates, probably further rising unemployment and aside from some housing market activity (due to coming off a low sideways base) that we are in a Goldilocks holding pattern and heading to a deflationary environment at worst.

The time for Gold will probably come again, but I doubt it's now.

Merely my 0.02.............

 

[Tulamalula]

wish i'd bought at 1200

 

[kum yin lau]

why 1200 instead of 600?
KY

 

[willair]

why 1200 instead of 600?
KY

If it goes into the 600 range,it would finish off all the gold miners on the way down and every supply chained linked to gold,all bar a high end socialist country starting a problem to bring it back up again..

 

[attrill]

If gold drops below $1000 then many mines become unprofitable and would be mothballed or shut down. Less supply on the market means more demand and an increase in price.

I hold real estate because people will always need somewhere to live. I hold gold because (in my opinion) there is much more upside potential than downside potential.


just a thought.

 

[hobo-jo]

I had a friend tell me that because the price of old has increased 10% since Christmas, we are in for an imminent property market crash and general market turmoil.

I would be asking him for the underlying reason for his expectations... an increase in Gold price doesn't necessarily indicate a property correction or crash is on the way, just look at the price of Gold in Australia from 2005 to 2007 (strong growth) and over this period property prices were generally rising too.

Perhaps his expectation is that the Gold price will rise as a result of continuing financial turmoil in China, Australia's largest trading partner, which will also result in lower commodity demand from Australia putting pressure on local incomes & jobs. That is a possibility.

 

[Intrinsic_Value]

anyone who bought silver in AU$ several months ago would be happy.

Whether this represents a fundamental change, who knows, and nobody should be looking to IV for advice on this.

But i did make two small silver purchases
(a) a physical silver 10 ounce bar purchase for around AU$240
(b) $10k position in 'financial' silver at AUD$21.

Yes the bar looks very nice, but it means didly squat to my financial well being.

 

[Deltaberry]

What's gold got to do with the price of fish?