When is cash King'?

Loughton_Monkey

smeagold wrote: »

admittedly asda don't take gold but a banknote from from a few hundred years ago is worth nothing (except collectors value) but a gold coin will 'buy' you roughly the same amount of goods now as then. food clothing , houses etc.

In roman times an oz bought a decent tunic and today will buy a decent suit. but....


"Paper money eventually returns to its intrinsic value -- zero." Voltaire

In a few years time when golds at $3k plus or more you'll wish you had. What will your tenner be worth then?

Most of us don't hold cash. OK, I have just under £200 in my wallet at the moment but that's insignificant. I don't invest in gold either, since it provides no income and is only worth whatever someone perceives it to be worth at any one time.

I would love to know more details of what I do hold. It's rather too complicated, but I think I own:

- One 12-thousandth of a robot in a Chinese Car factory.
- Two 3-millionths of a building in Puna housing 3,000 of people making designer handbags that flood the world's High Streets.
- Three 17-thousandths of a drilling machine churning out opals from a mid-Australian mine.

...... you get the idea.

All of these produce income. Most of these will take on new staff and expand. Most of these will put their prices up if inflation bites.

And the key thing is, that for any of those businesses who analyse their turnover, their financial health, their growth plans for the future ..... when they come to hear that a tiny, debt ridden country like UK has just had a 0.5% fall in the turnover of sandwich shops, dry cleaners, and builders [our GDP], I don't think their calculators will have enough decimal points to measure the insignificance of it all to them.

Cash is not king. But the investments it can buy can be.

StevieJ

ffacoffipawb wrote: »

Cash is king.

King Canute.

I think that is an injustice to King Canute, he sat on the shore to prove he couldn't push back the waves not that he could

smeagold

Loughton_Monkey wrote: »

Most of us don't hold cash. OK, I have just under £200 in my wallet at the moment but that's insignificant. I don't invest in gold either, since it provides no income and is only worth whatever someone perceives it to be worth at any one time.

I would love to know more details of what I do hold. It's rather too complicated, but I think I own:

- One 12-thousandth of a robot in a Chinese Car factory.
- Two 3-millionths of a building in Puna housing 3,000 of people making designer handbags that flood the world's High Streets.
- Three 17-thousandths of a drilling machine churning out opals from a mid-Australian mine.

...... you get the idea.

All of these produce income. Most of these will take on new staff and expand. Most of these will put their prices up if inflation bites.

And the key thing is, that for any of those businesses who analyse their turnover, their financial health, their growth plans for the future ..... when they come to hear that a tiny, debt ridden country like UK has just had a 0.5% fall in the turnover of sandwich shops, dry cleaners, and builders [our GDP], I don't think their calculators will have enough decimal points to measure the insignificance of it all to them.

Cash is not king. But the investments it can buy can be.

I was merely answering a point and I agree entirely, commodity/ energy producers, miners manufacturing, emerging markets are all excellent vehicles for investment. Whenever I'm asked about the best inflation investments I always include some or all of the above for consideration, not just gold.

2010

Any investment is good as long as you buy at the bottom, which of course is the difficult bit.

The property market crashed because greed set in and people we`re buying houses for what they were mean`t for

---

living in.

Wobblydeb

You lot are off like a dog after a rabbit!

Whenever I look at investments, or how the business I work for is doing, I spend the biggest proportion of time looking at cash flow statements.

Turnover is Vanity,
Profit is Sanity,
Cash is King.....

soulsaver

Cash is King when all other asset classes are declining.

IronWolf

One thing to note, that money isn't made from paper, in fact that £5 note in your wallet is actually a receipt from the Bank of England, promising £5 to the bearer (read the text on it if you dont believe me). So who knows what £5 actually is

jamesd

It's an undertaking that we'll be taxed enough to carry out that payment.

Wobblydeb

IronWolf wrote: »

One thing to note, that money isn't made from paper, in fact that £5 note in your wallet is actually a receipt from the Bank of England, promising £5 to the bearer (read the text on it if you dont believe me). So who knows what £5 actually is

Isn't money actually made from cloth? That's why it survives the wash and (if you want to test this) you can wipe ink off notes onto a plain white piece of paper

dqnet

Wobblydeb wrote: »

Isn't money actually made from cloth? That's why it survives the wash and (if you want to test this) you can wipe ink off notes onto a plain white piece of paper

Cotton to be exact