Moving my money

[BradNaylor]

Gold's only intrinsic value is for its use in certain industrial and electrical processes.

Any perceived value over and above that is purely an act of faith, based on nothing other than a belief that someone else will also value it highly.

Yes, gold is a finite resource. But so are all metals.

The 'mystique' of gold is purely an invention of the human mind.

Dan

 

[Racers]

Hi,

I was reading Nation Geographic the other day it had an article about gold, it seems that only 161000 tons have been mined in total, that seems a lot but it would only fill two Olympic sized swimming pools.


Pete

 

[ByronBlack]

Dan - gold has always been since it's discovery a demanded resource, it could be a figment of our imagination or whatever, that doesn't alter the fact that it's a very secure investment in something that will always been in demand. It's not just used in industry either. It's used in art, medical, science research, architecture etc. etc. As long as there are humans on the planet, gold will be an in-demand resource.

But, you are right about other metals too, there are many in-demand finite resources, but gold has always stood up as a reliable vehicle, you can't deny history.

 

[Jake]

Interesting...

When I posted my views on banks, the property market, and a then looming recession a year or so ago, people like Roger S and Jake replied with strident defences of the banking system.

Now they're very quiet.

What happened, guys?

:wink:

Dan

Chuck us a link to something where I was strident in defence of the banking industry?

I do still think you are overestimating the downside, but we'll see. People become as irrational on the way down panic as they become in the way up froth.

 

[Jake]

Dan is right on gold, that's for sure - check a price chart - it is anything but a secure investment.

 

[ByronBlack]

Dan is right on gold, that's for sure.

You present that as fact, when actually it's an opinion. I'd rather go with known facts and historical data.

 

[lurker]

Byron,

You are "sort of right"

Houses are also an in-demand resource and always will be.

We were told bricks & mortar are a sure fire investment but look what happened last autumn.

" warning: Your gold may be at risk, the price of your gold can go down as well as up" :lol: :lol:

I bought 2 kruggerands about 20 years ago. Taking into account inflation (my version of this is what my weekly wage was then compared with now), they are worth about what I paid for them then.

 

[ByronBlack]

Lurker - we have not had any massive inflation for decades, nothing like what is coming, you'll be happy to have your gold when that happens.

 

[lurker]

Byron

I think you worry too much!!

I witnessed the massive redundancies in the 70s and the situation out side "the city" is no where near near as bad this time.

My mortgage hit 17% IIRC, for example

But if you believe "we are 3 meals away from anarchy" (who said that by the way??). I think the best investment would be a shotgun & cartridges :lol: :lol:

 

[Jake]

Dan is right on gold, that's for sure.

You present that as fact, when actually it's an opinion. I'd rather go with known facts and historical data.

It is not an opinion that gold's intrinsic value is a tiny proportion of its price. The rest is confidence.

What part of this chart suggests that gold is a sensible investment? (As opposed to potentially sensible speculation)?

http://www.kitco.com/scripts/hist_chart ... graphs.plx

 

[Jake]

Lurker - we have not had any massive inflation for decades, nothing like what is coming, you'll be happy to have your gold when that happens.

I think the policy-makers would love to have a nice easy problem like inflation to solve.

 

[ByronBlack]

Lurker - we have not had any massive inflation for decades, nothing like what is coming, you'll be happy to have your gold when that happens.

I think the policy-makers would love to have a nice easy problem like inflation to solve.

I'm sure they would, but still, they are using 'quantitive easing' as a 'method' to get us out of this mess, only for us to then have to deal with hyper-inflation that ensues, , either way it's not great.

Either way, I have nothing to lose other than a mortgage, so I'm not going to get too worried about it. As long as those greedy swines at the banks and hedges suffer, I'll be happy.

 

[Jake]

Hyperinflation is not a necessary outcome of quantitative easing.

People point to the Weimar Republic, Zimbabwe etc, but there were other good structural reasons why output in those countries could not rise in response to the increased money supply - if that's the case then a bigger pot of money is chasing the same amount of stuff, and yes, spiralling into hyperinflation is inevitable if money keeps being printed.

But to say that is inevitable in all other circumstances is to take a massive short-cut through reason.

And if that wasn't the case, it wouldn't be being considered by policy-makers who are way better economists and way better informed than you or I (and who are, incidentally, almost universally inflation-hawks.)

 

[ByronBlack]

And if that wasn't the case, it wouldn't be being considered by policy-makers who are way better economists and way better informed than you or I (and who are, incidentally, almost universally inflation-hawks.)

Sorry, but that's where you have lost me - you think these policy makers are up to the task? They've ruined this countries economy though their pathetic 'leadership' so far, what evedince is that there know what to do know? Just because someone is in a position doesn't mean they actually know what to do with it.

 

[Paul Chapman]

it wouldn't be being considered by policy-makers who are way better economists and way better informed than you or I

I'm assuming you had your tongue in your cheek when you wrote that, Jake :? :lol:

Cheers :wink:

Paul

 

[Jake]

You expect too much, leading you to give too little credit.

(pun unintended, but made me laugh)

 

[ByronBlack]

You expect too much, leading you to give too little credit.

(pun unintended, but made me laugh)

cookie quote aside, I disagree completely. Go and look at the business news today and try and justify that these muppets have any clue as to what they are doing.

The bare minimum that I expect from elected 'servant's of this country is too look out for it's populace and to tell the truth - both of those expectations have been beyond them so to expect them to fix a crashing economy that they are complicent in creating is a stretch too far. And as for credit, if they deserved it, they would get it, but they do very little that deserves credit.

 

[Grinding One]

Byron

I think you worry too much!!

I witnessed the massive redundancies in the 70s and the situation out side "the city" is no where near near as bad this time.

My mortgage hit 17% IIRC, for example

But if you believe "we are 3 meals away from anarchy" (who said that by the way??). I think the best investment would be a shotgun & cartridges :lol: :lol:

You guys can buy those again??I never sold mine ,never know when you will get called up....

 

[Jake]

If you guys want to play the blame game with that degree of vitriol and certainty, you need to move somewhere with a command-and-control economy.

 

[Jenx]

We've always been able to buy them G1 !
They're licenced ( or rather the OWNER is licenced ), but yes, we can buy Shotguns, and (up to semi-automatic ) rifles here, with no great problem.
8)


Jake - you're not seriously implying that you have implicit trust and faith in the current regime, are you ?
If the answer was in the affirmative, then "fair enough to you," ... but seriously... you don't, do you ?
And i mean that as an 'all ecompassing faith' as opposed to trusting them to lead the country out of what is probably the worst financial crisis in living memory, as a 'stand alone' issue ?
If you do.. then I admire your conviction ...
but don't share in your optomism on the matter...

( not that the 'alternative' is anything better.. it isn't. :? )