Marc Faber: "I Would Recommend People Buy Every Month Some Gold For Ever"

jamesd

DiggerUK, how low do you think the value of a global equity ETF can go as a percentage of its value today? How likely do you think it is that it will fall to no value?

If a global equity ETF is trading at 5% of its current value, what do you think the balance of gold supply and demand will look like? What if the ETF falls to 1% of its current value? To 0?

kabayiri wrote: »

I feel uncertain on investments, because I feel we live in uncertain times.

That's the perfect time to be selling gold and buying the investments that have dropped in value. Classic buy low, sell high investing.

No great harm in discussing gold here but in the more serious investment sections it's a great way to encourage those who don't know any better to lose a lot of money, in part because the next time when gold is at current prices could be decades away, far too long to wait for someone who retires and needs an income.

DiggerUK

StevieJ wrote: »

Ah so this is a USD play not gold, interesting.

Yes.
Big part of golds value, is it's protection against currency inflation by debasement. Gold does not devalue, the currency it is priced in is were the problem occurs.
You can't go printy printy with the funny money forever, without debasement eating the purchasing power of money away.

The exchange rates between currencies of the world, is a battle between the helpless, the hopeless and the hapless. That's why I hold gold.

Really2

DiggerUK wrote: »

There are people who compare the price of bread 'n olives in Casers Rome to a modern Waitrose.
Comparing the price of a 16th century hovel, with a "Stunning Contemporary Abode" seems just as futile.

Each to their own though.

Not sure your bread and olives comment but perhaps a realisation of the can of worms you have opened when comparing gold longterm on other investments.

Some of the hovels are nice and have inflated well.:)

LisbonLaura

Really2 wrote: »

I don't need to but I can match your gold one with UK house prices if we talk long term

If only a post credit-binge asking price could be instantly realised.

The real loser over the next decade will be the paper currencies. Yet some on here seem unable to grasp why this is.

purch

In January 2008, 28 years after the all-time record high of price of $850 in January 1980, the nominal broke the record. In inflation adjusted US dollars, the price would have to reach about $2,200 to break the record in real terms

But, but, but, Gold is supposed to be the ultimate hedge against Inflation :eek:

How can that be

tomterm8

DiggerUK wrote: »

OK !!!!!! 2, show the evidence.
For you I will make it even easier, go back over the last 400 years.

Oh, that is a smart move, Digger, you just accidentally put the limit at the end of the great bear run between 1505 and 1650, when over that 150 year period gold was pretty much constantly falling in value. But, of course, such a master stroke would not stop me pointing out that between 1933 and 1969 gold in dollars trended downward. And that prior to 1933, there were indeed long periods of time when the value of gold fell; precisely as any economic theorist would suggest. For some reason, the concept of inflation was invented prior to the end of the gold standard, it turns out that even prior to the gold standard you could inflate away, as long as you could dig gold out of the ground.

And all this, to be honest, is irrelevant. I am not claiming anything. It is YOU that made the claim that gold always rises in price; it is for you to substantiate it.

StevieJ

DiggerUK wrote: »

Yes.
Big part of golds value, is it's protection against currency inflation by debasement. Gold does not devalue, the currency it is priced in is were the problem occurs.
You can't go printy printy with the funny money forever, without debasement eating the purchasing of power of money away.

The exchange rates between currencies of the world, is a battle between the helpless, the hopeless and the hapless. That's why I hold gold.

But gold has devalued since 1980 it would have to be 2200 in its base currency (after inflation) to be comparable, it is only the strength of the USD holding it up.

DiggerUK

jamesd wrote: »

...... how low do you think the value........who retires and needs an income.

Anybody looking to make a fast profit with gold is cruising for the proverbial. Todays situation really is a once in 50 years type phenomenon.

All my figures show that if a small portion is put by in gold during the boom years, then when you need to buy, as now, you can average in low. Gold must be in everyones portfolio.

Gold is best bought little and often, with a long buy in mind. My retirement is secure, even if my PS pension goes tits up.
Anyway you buy on dips, not on January the 20th 1980 days prices, or March the 5th 2010 prices.

purch

And all this, to be honest, is irrelevant. I am not claiming anything. It is YOU that made the claim that gold always rises in price; it is for you to substantiate it

Hang on.

You are getting this !!!! about face.

On an Internet Forum such as this, you do not need to provide evidence to substantiate a claim, but you do need to provide evidence if you dare to doubt a posters made up nonsense.

Really2

LisbonLaura wrote: »

If only a post credit-binge asking price could be instantly realised.

The real loser over the next decade will be the paper currencies. Yet some on here seem unable to grasp why this is.

The OP is saying over 100's of years. Is it that outlandish to say houseprices have increased in the last 400 year in general over that time.

Surely any one would agree as nearly everything in that time has inflated.

I fail to grasp the emotive argument when it is clear to see the point I am making is not pro HPI but that most assets have inflated in that time.

But being a house price forum I thought keeping on topic for once might help matters.:D