The current selling price is a good enough guide for me. Ag is US$1231.40. That is what a seller would get now.
Frankly, I think you are overanalyzing. It doesn't have to be that hard and it can be more fun.
What to invest in?
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The current selling price is a good enough guide for me. Ag is US$1231.40. That is what a seller would get now.
Frankly, I think you are overanalyzing. It doesn't have to be that hard and it can be more fun.
i prefer gold to paper money also lets not for get little bro silver . that's my choice and the reason i have gold . please tell me what a paper $ is worth .
had a choice in 2008 where to park large sums of money . my choice gold and the bank . gold outperformed the money in the bank many times .
gold to silver ratio trading is another way to increase your holding for nothing .
could someone offer me a better investment at the time ??
ps. the place i sold in scarborough w.a (since rezoned to give 57 units from 16 villa's and ocean views ) sold in feb this year for 90k less
I can picture inflation because we have lived with it all our lives. You just multiply it. Depression is harder because we have never experienced it. It would be frightening though. Like being in a minefield.... nowhere safe in sight.
What is even harder to picture is an "inflationary depression" and if someone knows how to survive that I'm all ears.
It has none. It is the metric against which everything else is valued, so you could say it has a value of 1 and that never changes.
Well that's the most sensible thing written about "value" yet.
True. With the current CBA share price something like double the price of its net book assets, I'd say the market also agrees with you and has given its brand a fairly hefty value.
More potential downside for me if that value is discounted for any reason.
One way to value a brand is to meaure the current value of the future earnings the brand can generate.
If liquidity and availablity of credit issues increase and margins fall, earnings will fall, hence brand value HAS to be discounted even if there no perceived reduction in the quality of the name.
yes stagflation or inflationary depression . if you look that is staring to happen now everyday needs increasing in value as value of other non necessary items decreasing .
be totally out of debt . own some bullion ,stockpile food ,grow veges and try and produce something that some one wants . best i can offer
Like you VE, I would prefer to be short than long the banks but that is using the simplest metric: P/E. It is too high considering the continuing GFC but that is probably because of a flight to perceived safety. Minor fluctuations of earnings wont dislodge these investors but any loss of trust will see them fall markedly.
The current selling price is a good enough guide for me. Ag is US$1231.40. That is what a seller would get now.
Frankly, I think you are overanalyzing. It doesn't have to be that hard and it can be more fun.
Not really overanalysing as I'm usually quite happy to accept the current selling price as well.
Was just highlighting that you can't rely on current selling price to remain the same or always increase, so you wouldn't bother buying a miner that was fairly priced based on the current selling price of whatever it digs out.
You should always buy at a good discount to give you a buffer against declines in the price of the metal, otherwise you may as well speculate on futures and avoid all the associated costs and risks of getting it out of the ground (which seems to be underestimated the majority of the time!!).
No private debt and selling an investment property now.
Check
Dan Murphy has some good cheap reds. Can I stockpile them instead?
Got a little veg patch but if I liked doing that stuff I wouldn't be here on my puter.
True! Australian gold miners in particular have a lot of hurdles to jump. Whenever POG rises so does our currency, we have sovereign risk in the form of Labor governments and native title acts and oil, a major input cost, keeps rising.
A gold bar as a door stop (I know a guy with a silver bar sewn into a piece of blanket as a door stop) has no political risk and needs no oil.
Isnt that what China is doing? Constructing mass towns nobody is even living in just to improve their GDP.
Thats a pretty gloomy forecast. Are you using charts or valuation methods to arrive at that figire.
Banks make up a huge chunk of the asx index. Are you expecting a 50% fall in those too?
Can't speak for Prospector but I would say "especially" the banks. A fall of that magnitude would have them on life support from the gov. I accept the possibility of such a big drop but doubt it will happen. Maybe I just don't WANT to acknowledge it.
the empty cities in china are amazing
yes i am and ill find you a chart relating the stock market to gold ..(30 year cycles)
banks yes .in real terms they are insolvent now
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I like the chart.
I don't see how you are getting an ASX number of 2000 from it though.
The current Dow:Gold ratio is 8.59 . What are you expecting it to get to and do you think that will happen due to to gold going up, the dow going down, or both.
l expect under 2 and over 1 possibly closer to one looking at the prior bottoms
i will sort chart out for aussie
when i say 2000 i mean in the 2000s somewhere asx will come down gold up .
they will meet in the middle . my guess comes from looking at asx and gold charts .
