Gold is not money (but it might be a good investment)

phil_b_2

chucky wrote: »

That chart would make me very scared to invest in gold right now...

Bullfighter

phil_b wrote: »

That chart would make me very scared to invest in gold right now...

Sure, I mean we are heading for growth like it was 1999. What could possibly keep gold from increasing in value..??

Our fiat currency system is broken. The game of musical chairs has started , the last country to devalue doesn't get to sit down.

brixham

Bullfighter wrote: »

What do you 'do' with your Cash ISA?

Shake my head sadly whenever a statement arrives !:(

It was a serious question though sorry if it is a daft one.

Bullfighter

brixham wrote: »

Shake my head sadly whenever a statement arrives !:(

It was a serious question though sorry if it is a daft one.

As I said earlier, for me gold and silver are a hedge against currency devaluation and/or systemic transition.

If I'm proved wrong and everything magically gets better then I will surely be earning £200kpa and will be able to get a 13x earnings, 110% interest only, self cert mortgage and buy a brace of BTL properties and ride the wave of house price inflation.

Housebear51

Bullfighter wrote: »

As I said earlier, for me gold and silver are a hedge against currency devaluation and/or systemic transition.

If I'm proved wrong and everything magically gets better then I will surely be earning £200kpa and will be able to get a 13x earnings, 110% interest only, self cert mortgage and buy a brace of BTL properties and ride the wave of house price inflation.

Very good post, I like it.

chucky

phil_b wrote: »

That chart would make me very scared to invest in gold right now...

it's ok, you can't lose. i've been told the secret

Bullfighter wrote: »

Try 1978 or 1982 and re-run your calculation.

you buy gold using prices from the past and you can't lose. :T

Bullfighter

chucky wrote: »

it's ok, you can't lose. i've been told the secret

you buy gold using prices from the past and you can't lose. :T

I'm bearish on house prices, I can give you dozens of reasons why.

You're bearish on gold but can only show an upward trend on a graph to support your position.

Some believe gold is a bubble. It is not. The price of gold, however, tracks a bubble and that is why it is mistaken for one.

The real bubble is government debt, not gold. Government debt is a bubble that hasn’t yet burst; one that has grown even more rapidly in the last two years as almost all nations went far deeper into debt after the 2007/2008 global collapse.

It tracks a bubble because it is a hedge, so gets more expensive the more likely the hedge is needed.

chucky

Bullfighter wrote: »

The real bubble is government debt, not gold. Government debt is a bubble that hasn’t yet burst; one that has grown even more rapidly in the last two years as almost all nations went far deeper into debt after the 2007/2008 global collapse.

It tracks a bubble because it is a hedge, so gets more expensive the more likely the hedge is needed.

how can government debt be a bubble.

it's not a bank account where you have a limit - you can print as much money as you like and release as much as you feel you can sell.

Bullfighter

chucky wrote: »

how can government debt be a bubble.

it's not a bank account where you have a limit - you can print as much money as you like and release as much as you feel you can sell.

And there is the rub. If they print they default through inflation.

The bubble will burst.

exil

I suspect it might be worth putting SOME money into gold as a hedge against inflation (as inflation may be used by governments as a way out of their debt problems). However there is a risk attached if instead the world lurches into a prolonged period of deflation.

If I had 200k to spare (I don't) I'd probably prefer property - as, whatever happens, I'd have something that someone could live in (possibly me), and in the meantime, something that can generate an income. Gold can't do either.