Gold,silver

Generali

mrposhman wrote: »

Just to cover my back, this isn't a tip from me. I know very little about platinum but just from the chart it seems an infinately better play than gold if your views on the economy are that we aren't about to see financial armageddon.

The chart is comparing apples and oranges. Over half the demand for platinum now is for auto manufacture/spares. In 1971 it would have been 0g or there abouts I would guess.

dandy-candy

So if we have missed the boat on gold, what would be a good alternative?

dandy-candy

Oh and one more thing I forgot to ask - why is it only metals? What about diamonds?

sabretoothtigger

The total amount of gold in the world is in a cube 20m wide and its more consistent then diamonds which have to be crafted.

I dont think investing in luxury goods would be a good idea, gold is something else right now I guess

Generali

dandy-candy wrote: »

Oh and one more thing I forgot to ask - why is it only metals? What about diamonds?

The two screaming buys to me at the moment are index linked gilts and productive farmland.

DYOR.

Streeet

Thinking of alternatives I thought I'd do some reading around Gilts and Treasurey bonds. My simplistic view was that a government IOU would have limited risk (In comparison to other investments). I've learnt a little more as I normally do but found this article which seemed to fit nicely with this thread:

Can Cash Crash

The interesting quote being:
"Any crash in paper cash would reinstate gold as the ultimate cash.
The brunt of ridicule, old-timers often kept gold coins in shoeboxes under their beds. It might not be such a joke by 2010."
John Brown - Pittsburg Tribune Review

Generali

Streeet wrote: »

Thinking of alternatives I thought I'd do some reading around Gilts and Treasurey bonds. My simplistic view was that a government IOU would have limited risk (In comparison to other investments). I've learnt a little more as I normally do but found this article which seemed to fit nicely with this thread:

Can Cash Crash

The interesting quote being:
"Any crash in paper cash would reinstate gold as the ultimate cash.
The brunt of ridicule, old-timers often kept gold coins in shoeboxes under their beds. It might not be such a joke by 2010."
John Brown - Pittsburg Tribune Review

It depends what you want to buy. If you want an investment, index linked Gilts look good. If you want a hedge against catastrophe and don't mind losing some money the gold is the way to go (or tins of beans and shot gun cartridges as previously discussed).

novazombie

Gold is now over $1000 and Silver over $14.

In 6 months this is going to seem very cheap.

Arcaine

In any currency crash you would expect a flight from the currancy into commodities and other more stable currencys as people try to protect their buying power So lets have a look at some industrial metals over the last year

Platinum
http://markets.ft.com/tearsheets/performance.asp?s=us@@DPL.1

Copper
http://markets.ft.com/tearsheets/performance.asp?s=US@HG.1

Now we can look at Gold

http://markets.ft.com/tearsheets/performance.asp?s=us@GC.1

People are definately buying gold pushing up prices, but I dont believe it is because currency is about to crash or even because they are inflation hedging because there is massive monetary deflation going on right now, and thats the real reason gold prices are climbimg, money (which gold can be classed as) increases in value in times of deflation.