Gold to buy or not to buy

uih039

thrupence wrote: »

The UK was the world superpower up until 1939, but declining. The US took that role after WWII.

Since then the UK has declined in so many measures that we're embarrassed by the productivity of competitor European nations in everything they produce.

We used to be known for quality production.

We lost that, and then we became a mecca for finance.

We're losing that too.......

What's left?

I think we agree in principle but disagree about the level of impact on UK citizens. Also, I do not agree that we are losing our strong Finance industry. That comment may make you :rotfl:but I feel that the current problems are a blip and are affecting almost every other country just as much as us. I do accept that our manufacturing industry has significantly declined but that is primarily due to the fact that most UK workers are used to a high standard of living and will not accept very low pay, compared to workers in some overseas countries. I would argue that is a good thing (for us, not for the overseas workers!) I do not think this will happen in the Finance industry.

What's left? How about the leisure and entertainment industry as an example? The silver lining to the currency drop cloud is that our tourist industry is likely to boom over the next couple of years.

Economic cycles come and go. The UK has been a wealthy country for many hundreds of years and a couple of years of low interest rates and high unemployment is not going to change that.

IMO......................................

uih039

tradetime wrote: »

Celebrity Big Brother? :rotfl::rotfl:

Many a true word spoken in jest. The UK sells a huge value of TV programmes all over the world resulting in significant income and employment. Another good example of our very successful underlying economy (although maybe CBB is not one to be particularly proud of ).

thrupence

cloud_dog wrote: »

Couple of things........But, timescales are the relevance here and whether the down bit is a puase for breath or a more bloodied correction, etc.

That's what I've been saying all along!!

:T

cloud_dog

thrupence wrote: »

That's what I've been saying all along!!

:T

Sorry thrupence but saying:

thrupence wrote: »

The indicators tell us that gold will go down.

Implies a fairly negative take on the trend for gold. Whilst I expect gold to retrace I expect the long term trend to remain intact. Hense my specific comment on your post.

thrupence

uih039 wrote: »

I think we agree in principle but disagree about the level of impact on UK citizens. Also, I do not agree that we are losing our strong Finance industry. That comment may make you :rotfl:but I feel that the current problems are a blip and are affecting almost every other country just as much as us. I do accept that our manufacturing industry has significantly declined but that is primarily due to the fact that most UK workers are used to a high standard of living and will not accept very low pay, compared to workers in some overseas countries. I would argue that is a good thing (for us, not for the overseas workers!) I do not think this will happen in the Finance industry.

What's left? How about the leisure and entertainment industry as an example? The silver lining to the currency drop cloud is that our tourist industry is likely to boom over the next couple of years.

Economic cycles come and go. The UK has been a wealthy country for many hundreds of years and a couple of years of low interest rates and high unemployment is not going to change that.

IMO......................................

I hear what you say, but I feel that our economy has become so dominated by financial services that their collapse is a major real collapse on the ground, with nothing to put in its place.

uih039

thrupence wrote: »

I hear what you say, but I feel that our economy has become so dominated by financial services that their collapse is a major real collapse on the ground, with nothing to put in its place.

I think our debate has reached a point where we have to agree to disagree. I will post again in 18 months when the Conservatives are in power and the economy is booming

Time for bed...

liebe911

Gold is a good bet better than equities.

rl290

I have some reasonably sized gold holdings. Here are my two cents:

1) If you haven't bought gold already, you've missed the boat. The time to buy was months/years ago. While gold may continue to rise, buying at such a high level now would mean that you will have to hold on longer into any potential bubble to attain a return that warrants the risk of the asset - resulting in the risk of still having a holding when the bubble bursts. (Think of the people would bought into the housing market in 2006; sure there was still over a year of growth, but these people are hardest hurt by the crash)

2) I am holding my gold, but will consider slowly selling off over the next 12 months depending on how the world economy is looking. At the moment, I see upside to gold, but not as high as the ludicrous $2000 being quoted (note: famous last words...). I have heard plenty of compelling arguments for gold going up, but have never heard a good argument for a specific figure. (Talking about inflation adjusted highs is just rubbish: the commodity doesn't "know" it used to be prices higher! Real intelligent investors do not care what the price of gold was in the 80's! Supply-demand dynamics for gold have changed considerably over the last 20 years!) In fact, I have never heard a target price that has been accurate ever, and I two years reading equity analyst reports.

liebe911 wrote: »

Gold is a good bet better than equities.

Why do you say that? It depends what equities you hold and how. Over the last year, gold is up 30% in GBP terms, but my equity funds are up 50%. Gilts and bonds probably fared better, but I missed that boat.

R

gozomark

uih039 wrote: »

Many a true word spoken in jest. The UK sells a huge value of TV programmes all over the world resulting in significant income and employment. Another good example of our very successful underlying economy (although maybe CBB is not one to be particularly proud of ).

except Big Brother isn't British...... It was invented by Endemol, which is based in The Netherlands, and is owned by an Italian company (they also do Deal or no deal, Changing rooms, ready steady cook and ground force) - other than that you are right

uih039

rl290 wrote: »

Why do you say that? It depends what equities you hold and how. Over the last year, gold is up 30% in GBP terms, but my equity funds are up 50%. Gilts and bonds probably fared better, but I missed that boat.

R

S/he says that because he spammed loads of threads around 4am this morning (so almost certainly from overseas) with meaningless posts of about 10 words each. Clearly this was to draw attention to a link in his signature which was very swiftly deleted by the moderators.

Well done, mods!