Gold rockets 5% to $820 and rising

cbobting

Andreg wrote: »

"Huge" isnt the word I would use!

I assume since you ignored the comment about the dollar weakening that you got that one wrong.

One other comment about 'investing' in gold - its immoral. Read the bible or the koran.

:rotfl: :rotfl: :rotfl: :T

jon3001

Andreg wrote: »

Gold has got to be the ultimate speculative investment. It's hardly useful for anything, 96% of the gold ever mined sits idle, it pays no interest or dividend, and your only hope of a profit is for a greater fool to buy the stuff off you.

In simplistic terms, to receive interest or a dividend then your asset has to be someone else's liability. Precious metals aren't anyone else's liability.

Over the millennia a major utility has been as a store of value.

Have you ever asked yourself what a pound sterling actually is, why it has value and why people will trade goods and services for it?

Andreg

Owning a share in a business isnt someone else's liability, its capital - not quite the same thing. Owning and letting a house or other asset isnt someone else's liability.

When looking for something to buy to store value, I'd rather buy something that generates a decent income, and not something that costs me to store in an expensive safe, or costs more in fees to hold in securitised form than it generates in yield.

In fact I was wrong to say gold carries NO interest or dividend. It IS possible to lend gold and get interest on it. The problem is the yield is really low because there's not much demand to borrow it as it's virtually useless stuff.

Finally, yes Jon I'm aware that fiat money IS someone else's liability and has no value other than the government's backing, and that can be eroded as they wish. So I wouldnt hold too much of that either - at least not all in one currency. But this thread is about gold, not money.

wombat42_2

$880 :beer:

purch

It's looking very interesting on a 12 month chart (or should that be weird)

To go from virtually reaching the 12 month low recently (around $720):eek: , to threatening the 12m trendline (around $ 920 ish) :eek: in such a violent move.....I'm still trying to fathom what it might mean to the longer term trend (if anything)

wombat42_2

purch wrote: »

It's looking very interesting on a 12 month chart (or should that be weird)

To go from virtually reaching the 12 month low recently (around $720):eek: , to threatening the 12m trendline (around $ 920 ish) :eek: in such a violent move.....I'm still trying to fathom what it might mean to the longer term trend (if anything)

The gold price went absolutely mental this time last year as well.

For your delectation.
http://www.bloomberg.com/apps/news?pid=20601213&sid=awFy4i6wSdmg&refer=home

jon3001

Andreg wrote: »

Owning a share in a business isnt someone else's liability, its capital - not quite the same thing. Owning and letting a house or other asset isnt someone else's liability.

The point I'm making is that in basic terms you're someone's creditor.

If the board decided to wind-up the business then you're expecting your capital to be returned. If a dividend is forthcoming then you want yours. You're relying on someone else to fulfill an obligation to make your investment come good.

When you bill a tenant for their rent then that is a debt they owe you. Same argument.

Andreg wrote: »

When looking for something to buy to store value, I'd rather buy something that generates a decent income, and not something that costs me to store in an expensive safe, or costs more in fees to hold in securitised form than it generates in yield.

Shares aren't considered store-of-value assets since they have the potential to go to zero.

Traditional store-of-value assets are: arts and antiques, currencies, jewelry and precious metals. For the most part (discounting fiat currencies) these are hard assets which if buried for your progeny to find would almost certainly still be valuable later. They are usually relatively easily transportable in times of crisis.

Andreg wrote: »

Finally, yes Jon I'm aware that fiat money IS someone else's liability and has no value other than the government's backing, and that can be eroded as they wish. So I wouldnt hold too much of that either - at least not all in one currency. But this thread is about gold, not money.

The thread also isn't about investments which intrinsically generate interest or yield. But that didn't stop you posting anyway.

For thousands of years precious metals have had a monetary role. For many people they still represent money.

Just because an asset class doesn't have the characteristics which you're looking for (e.g. yield, interest) doesn't mean that it's a poor choice for other people. That's like criticising a large family for buying a people-carrier when you prefer a sports-car because you wanted performance.

purch

Read the bible or the koran

I guess that explains why the two nations whose subjects display the most affection for Gold are China and India.

Neither the Chinese nor Indians waste much time reading either of those novels !!!

cbobting

purch wrote: »

I guess that explains why the two nations whose subjects display the most affection for Gold are China and India.

Neither the Chinese nor Indians waste much time reading either of those novels !!!

funny, i dont think andreg realises that they are referring to the stock market (and everything and body thats it encompasses) - the most amoral, ungodly entity to be forced upon us, apart from religion that is.

pumpndump

Call me Auric. I am a happy man. I bought gold b4 all this mess started. I'm laughing all the way to the...to the...oh !!!!!!!

Seriously, though, I think everyone should have gold as an investment, even if it is only a couple of Golden Eagles or Krugerrands. You never know what might happen, especially these days.