Gold anyone?

GW65

richgirl wrote:

There is one guaranteed way of beating inflation

Government Index Linked Bonds.

gold has had a good run, 4 years ? , and now the gold bugs are talking about $1000, which suggests golds more likely to take a breather for a while at least if not longer

Call me pedantic... The bonds will indeed beat the RPI - just depends on whether you believe the RPI is a real measure of inflation!

cloud_dog

Enjoyed reading the different opinions on this thread so thought I'd just go back and find a post I made a little while ago:

http://forums.moneysavingexpert.com/showpost.html?p=2058433&postcount=15

To be honest I am probably more bullish now and am hovering on investing money into the stuff. As regulars may be aware my investment of choice is likely to be Central Fund of Canada (holds nearly a 50/50 split between Gold and Silver). Silver, now there's an interesting commodity / PM - but we wont go there.

cloud_dog

richgirl

GW65 wrote:

Call me pedantic... The bonds will indeed beat the RPI - just depends on whether you believe the RPI is a real measure of inflation!

Well gold has not beat RPI over the last 20 years or so, but index linked bonds do

cloud_dog

Richgirl, I think you are missing GW's point, RPI is a measurement based on a 'selected' number of items. It is merely an indication of the costs / increase / decrease of those particular items. In fact I beleive the content of those items have altered during the years.

Therefore, as an indicator it has some value but it is not comprehensive, or perhaps a true indicator.

As a note, I think someone commented on the UK money supply increasing by 13%, I thought I'd read somewherre that it was actually slightly more than this (16%?? - will have to re-do my research to find it) and that the UK has been increasing its money supply faster than India (which is a booming economy).

cloud_dog

F_T_Buyer

I suspect one of the reasons why low gold prices is central banks selling off their gold.

I mentioned the money supply (M4) was 13%, if you look at the rolling average I believe it is more. But these figures jump around alot. Either way, anything over 7-9% is unsustainable.

The ECB (European Central Bank) says M3 should be 4.5% - it just shows how we, as a country, are robbing Peter to pay Paul.

ReportInvestor

FT

Gold fell 4% on September 11 2006.

Now down 18% for the year.

F_T_Buyer

ReportInvestor wrote:

FT
Now down 18% for the year.

18% down from it's peak. Which was quite normal.

Anything that goes up that fast will come back down, whether it be gold, shares or house prices.

kaya

Check out what a 2p piece is worth now, pre 1992 were 97% copper and are now worth 3p each scrap value, so buy £20,000 of 2p's, take them abroad and melt them down, sell the metal for scrap, buy a new car with the proceeds

Chrismaths

ReportInvestor wrote:

Gold fell 4% on September 11 2006.

Now down 18% for the year.

That's not quite true, it's from the peak to now - over 1 year, gold (in sterling terms) is up 30%, and YTD, it's up around 5-6%.

cloud_dog

Come on RI, nothing goes up in a striaght line, nothing goes up (or down) without corrections (large ups or downs).

cloud_dog