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long term investment
Comments
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current investment climate maintain a high cash allocation until the fog clears
current investment risks are being countered by debasing cash worth. You cant disengage risk by holding what they are using to counter it
set fire to the woodwork and plenty things will crawl out. If you enjoy heat, make yourself comfortable0 -
John_Black wrote: »I’ve been given the same advise for six years now; those who listened to it did well, those who didn’t are soon to discover what happens when you have exaggerated trust in paper money…
Yes, except that no-one is advocating investing in 'paper-money', there are far better alternatives to both cash and The Precious Metal Which Apparently Must Not Be Named, which is why your 'advise' is terrible.
Also, goldbugs and other precious metal fundamentaloids have been warning people that Western economies will collapse or experience hyperinflation 'soon' for at least the last 5 years.0 -
Those arguments are not the exclusive preserve of the loony faction of precious metal holders. Many commentators say much the same in the media every day.........goldbugs and other precious metal fundamentaloids have been warning people that Western economies will collapse or experience hyperinflation 'soon' for at least the last 5 years.
Most who save in gold as a long term investment, do so for grounded reasons; mainly that you cannot keep printing money as a solution to an economic crisis.
To say, as you have, "that gold is the ultimate fiat currency" shows a remarkable lack of comprehension of what a fiat currency is. At it's simplest level, fiat is a unit of exchange, that can be manufactured out of thin air. The alchemists are still coming up short making gold out of anything other than a hole in the ground.
Gold is not fiat, but it is the ultimate short against all fiat currencies.
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Most who save in gold as a long term investment, do so for grounded reasons; mainly that you cannot keep printing money as a solution to an economic crisis.
Yes, but what percentage of your portfolio do you hold as gold and do you rebalance?
The real nutters are the "100% gold and never sell any" ones.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Not at all. Lets' take your "100% gold" first.gadgetmind wrote: »......
The real nutters are the "100% gold and never sell any" ones.
Apart from small amounts in PB's and cash; NSI Index Linked and gold is the bulk of our savings. The gold portion is always over 80% these days. Once the balance from the sale of Digger Mansions 1 is in, then there is every chance that 80% will increase. If NSI IL make an appearance, then they will be considered.
'Re-balancing' is a trite bit of meaningless nonsense, thrown at the unwary by the unscrupulous. What needs to be constantly 'rebalanced' is ones appraisal of the economic situation. Only a fool would trust the equity and capital markets going forward.
That is the question this thread raised at the start.
As to your tagging on "and never sell" I don't see the point you are making; apart from no worthwhile point of course. Our gold savings are for our retirement bucket list, and will be sold as and when the rest of the cash runs out.
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sabretoothtigger wrote: »current investment risks are being countered by debasing cash worth. You cant disengage risk by holding what they are using to counter it
set fire to the woodwork and plenty things will crawl out. If you enjoy heat, make yourself comfortable
What are you smoking?0 -
The gold portion is always over 80% these days.
As I'm sure you know, that's a very high risk strategy, however, if you're happy with it ...'Re-balancing' is a trite bit of meaningless nonsense, thrown at the unwary by the unscrupulous.
Why? Look at which assets class has done best in each year of the last 30 years. Could you really have predicted that? Really?
I've been investing for many a decade, and "single asset class drum bangers" seem to emerge every few years, but then it all goes wrong for them and the melt away.
Of course, this time it will be different ... is what they always say.Only a fool would trust the equity and capital markets going forward.
Agreed, but an even bigger fool would be one who eschewed them entirely to focus on just a single unproductive asset.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Those arguments are not the exclusive preserve of the loony faction of precious metal holders. Many commentators say much the same in the media every day.
Most who save in gold as a long term investment, do so for grounded reasons; mainly that you cannot keep printing money as a solution to an economic crisis.
To say, as you have, "that gold is the ultimate fiat currency" shows a remarkable lack of comprehension of what a fiat currency is. At it's simplest level, fiat is a unit of exchange, that can be manufactured out of thin air. The alchemists are still coming up short making gold out of anything other than a hole in the ground.
Gold is not fiat, but it is the ultimate short against all fiat currencies.
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Make your mind up. Is gold an investment or a store of wealth?
It seems that the driver of the price is speculative demand at the moment. It's certainly not increasing in line with inflation and has the volatility of a risk asset.0 -
QUOTE gadgetmind... that's a very high risk strategy....(A)
...Look at which assets class has done best in each year of the last 30 years. Could you....have predicted that...(B)
I've been investing for many a decade, and "single asset class drum bangers" seem to emerge every few years, but then it all goes wrong for them and they melt away.....(C)
.....but an even bigger fool would be one who eschewed them entirely to focus on just a single unproductive asset....(D)
(A) High risk strategy...by who's criteria?
we at Digger Mansions are the most conservative and cautious of savers/investors. The risk is with anything relying on capitalism not being screwed around by the masters of the universe. Gold they cannot interfere with, despite what the loony's say.
(B) Best asset classes in last 30 years!!! when it was boom time we stuck pins in the Financial Times, only on one occasion admittedly, and came up winners...why? because we assessed the situation correctly. We only went pell mell in to gold from 2005/6.
(C) Guess who was never sucked in to the property boom nonsense....Digger Mansions and our mate Kirsty;)
(D) Gold?...unproductive asset...now your defying gravity.
But I will countenance against anybody going in to gold to speculate and make a quick buck. Times of economic crisis like we are witnessing, are very unusual for gold.
Remember gold has not been totally free of government price controls, in times of economic crisis, from the 19th century till the 1970's.
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To say, as you have, "that gold is the ultimate fiat currency" shows a remarkable lack of comprehension of what a fiat currency is. At it's simplest level, fiat is a unit of exchange, that can be manufactured out of thin air.
I apparently comprehend what a fiat currency is better than you, based on that incorrect description. A fiat currency is a currency that has value because a government decrees that it has value.
Gold has value because investors say it does. You could say this is more democratic than a fiat currency, but the philosophical underpinings are the same. 'A thing is worth only what others will pay for it' has never been truer when spoken in relation to gold.
You seem to have only a vague grasp of economics, yet an unshakeable certainty in the future you predict. Does not compute.0
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