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Debate House Prices


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Turkeys voting for Xmas !!!!

I think it must escape the small minds of our Gold !!!!!!s, but everytime they "celebrate" the price of Gold making new highs, what they are really seeing is the true value of money being eroded.

Yes, holders of Gold might, if they get their timing right make a small 'paper' profit, but in the grand scheme of things that will mean nothing.

Unless they hold enough Gold to totally hedge out their total current worth, and all future earnings, then for as long as Gold continues to rise.........they lose.

Irrespective of how much Gold you own, the continued rise in it's price is something to worry about, not gloat over !!!!
'In nature, there are neither rewards nor punishments - there are Consequences.'
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Comments

  • Gorgeous_George
    Gorgeous_George Posts: 7,964 Forumite
    Part of the Furniture Combo Breaker
    They won't lose as much as non-holders of gold - or have I missed something?

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • purch
    purch Posts: 9,865 Forumite
    Yes.

    I am pointing out the 'irony' of celebrating when you are in all probability losing out as well.

    Owning a few grand in Gold or Gold related securities cannot possibly hedge you against the overall absolute value you will potentially lose.
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Exocet
    Exocet Posts: 744 Forumite
    The gold bug thing annoys me, partly because I haven't got any. I would be happy though if I had a few sovereigns and the price had gone up. But I do take the point I think. When my BP (lol), well oil and mining shares go up - I think good, and then I realise what that means for commodity prices and inflation.

    Does this mean it is impossible to be a happy investor?
  • nearlynew
    nearlynew Posts: 3,800 Forumite
    An ounce of gold is an ounce of gold.

    Paper currencies have come and gone over thousands of years, but gold's desirability and hence its value as a store of wealth remains.

    Gold, quite simply, IS money.
    "The problem with quotes on the internet is that you never know whether they are genuine or not" -
    Albert Einstein
  • lemonjelly
    lemonjelly Posts: 8,014 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee!
    The answer to all our prayers is here...
    http://news.bbc.co.uk/1/hi/business/8679193.stm
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • Charterhouse
    Charterhouse Posts: 296 Forumite
    nearlynew wrote: »
    An ounce of gold is an ounce of gold.

    Paper currencies have come and gone over thousands of years, but gold's desirability and hence its value as a store of wealth remains.

    Gold, quite simply, IS money.

    He's right though, unless 100% of your wealth is in it, you are still heavily exposed to the disaster that you seem to be predicting.

    Anyway, if FIAT currency really does collapse, I'll take my house, foodstores and weaponry over gold anyday.
  • The True winners are Martin & Gary Kemp.

    They now own all exclusive rights to Gold.....
    Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
    (MSE Andrea says ok!)
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I'm hoping that the earth is destroyed by a comet, that will really teach those gold buyers a lesson
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • Harry_Powell
    Harry_Powell Posts: 2,089 Forumite
    I'm hoping that the earth is destroyed by a comet, that will really teach those gold buyers a lesson

    Even better if we were destroyed by a Gold laden Meteor, oh the irony.
    "I can hear you whisperin', children, so I know you're down there. I can feel myself gettin' awful mad. I'm out of patience, children. I'm coming to find you now." - Harry Powell, Night of the Hunter, 1955.
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Even better if we were destroyed by a Gold laden Meteor, oh the irony.

    LOL good one
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
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