Got no pension..Help

Asheron

Gold is a Currency, just like the Dollar, the English Pound.

But remember the English Pound is only Paper

bendix

Asheron wrote: »

Gold is a Currency, just like the Dollar, the English Pound.

But remember the English Pound is only Paper

Oh.

Right.

Well, that's me convinced. A truly compelling argument, if ever I heard one.

Now, how about telling me why gold is inflation proof when it's significantly lower in price now - taking (ahem) inflation into account - than it was during most of the 1980s.

gozomark

In which country is gold a currency ?

DiggerUK

gozomark wrote: »

In which country is gold a currency ?

It is not a currency, i.e., common coin, in any country.
Vietnam is one country were property and land have to be purchased in gold according to the law. But that is an exception.

However if you go to any country on the planet gold can be exchanged for local currency.
Hence the undeniable claim that even though money is not always gold, gold is always money. Gold is an international currency in it's own right, as we often remind Gordon Brown.

Gold is inflation proof. On the March spike in 1980 it went to 370 pounds an ounce for one day. Equates to 1200 GBP today.

In the 12 months before that it was below 120 GBP, 455 GBP today.
Within a few weeks it was down to 220 GBP, 705 GBP today.

As it is 660 GBP today, and was 690 earlier this year, the harping on about the price it leapt to for one day in 1980 is spinning a bankrupt argument against gold a bit far.
As to buying this year there are many days that it has been below 570 GBP.
If anybody bought on the spike in 1980, or the spike this year, well, stoopid is as stoopid does.

http://www.lbma.org.uk/?area=stats&page=gold/1979dailygold
http://www.lbma.org.uk/?area=stats&page=gold/1980dailygold
http://www.lbma.org.uk/?area=stats&page=gold/2009dailygold

http://www.bankofengland.co.uk/education/inflation/calculator/index1.htm

gozomark

Gold is not inflation proof, as you admit "If anybody bought on the spike in 1980, or the spike this year, well, stoopid is as stoopid does." So its only inflation proof if you buy it at the right time then...

However if you go to any country on the planet gold can be exchanged for local currency - so can a barrel of oil, diamonds, an ounce of silver, platinum etc etc. The same could be said for cocaine and heroin. That doesn't make it currency - that makes it a commodity.

ed123_2

....by the time you retire the state retirement age will be 105 !!!!

DiggerUK

winkler wrote: »

Hi all,
I'm 45 and got no pension, but I am debt free and I intend to save £500/month,
I would like to save and invest for at least 15 years. (i hope).
Thanks

Well hi Winkler,
45, no pension, don't panic. As you are debt free you are in a good position.
First things first, life is for living. Make sure you do just that, some of that 500 a month can be blown on the good things in life.

Next thing to do is shoot any IFA who tries to mesmerise you, with fantasy stories of 7/8% growth if you give them lots of money for a zombie pension. They are sexed up sales reps who know about financial services and financial products, but sweet FA about economics and markets. Once they have their fees and commissions it will be the last you will hear from them.
Did you know that they don't have to have any qualifications in economics, accountancy and, wait for it, they don't even have to have a qualification in maths. Not the type of person I'd put my money with.
But it's your money, your decision.

All you need to do for your retirement years is provide for financial security.
We have our pension savings in Gold, NSI Index Linked and Cash ISA's.
Rainy day funds are in Premium Bonds for ease of access and a bit of fun.

We have final salary pensions as public servants as well. Why not go that route yourself whilst final salary pensions are still available, there are fewer openings in public service, but should not be sniffed at, it's a worthwhile career.

Best of fortune.

DiggerUK

gozomark wrote: »

So its only inflation proof if you buy it at the right time then...

Oh do keep up, that's lesson one, page one.
Remember the chapter called "Buy low, sell high"
Read it through again, it's clearly explained.

gozomark

so we agree then, gold isn't inflation proof - hang on, you said above "Gold is inflation proof." So is it, or isn't it ? If it is, it always is, if it isn't, it isn't. Make your mind up time :-)

gozomark

Gold is sitting at an all time nominal high in $ - where does that fit in with your "Buy low, sell high" investment style ?