long term investment

DiggerUK

lvader wrote: »

You have said you will only sell gold as and when you need money when you retire. A 20% drop in a month or so is fairly normal so that will get ignored. At what point do you start to panic and sell? You could have lost half of your retirement fund before any signs of a true bear run start to appear.

20%, or even 30%, would not mean that much to us, we've been buying a long time now. Average costs are around £620 an ounce for us.
Anyway I cannot remember a 20% drop in one month.
But others are considering gold and will be worried that they will be buying in at a period that mirrors January 1980.

My advocacy of gold long term is based on an analysis of were the worlds economies are in the here and now.
Debased currencies all over the world is what I see, and that means I do not really want the risk involved in returns from equities and capital markets, which I view as a risk too far.
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sabretoothtigger

fairleads wrote: »

What are you smoking?

The woodwork

A central bank implements quantitative easing by purchasing financial assets from banks and other private sector businesses with new electronically created money.[3][4][5][6] This action increases the excess reserves of the banks, and also raises the prices of the financial assets bought, which lowers their yield.[7]

avoiding risk by holding cash in this case is like walking from one end of a seasaw to the other, ultimately you arent avoiding anything if the two are connected

Western economies will collapse or experience hyperinflation 'soon' for at least the last 5 years.

Housing bubble had the same warnings for five years and that turned out fine too :think:
We can go back further then that, De Gaulle warns of problems from loose dollars, he has been dead awhile but Im not sure he was wrong
http://www.youtube.com/watch?v=j58gikUjyIo

Best asset classes in last 30 years!!!

Only due to a recent lift. It's been a grim asset class much of the time.

over 100 hundred years things have been very grim for it to rise 1 to 250 in price

DiggerUK

MrMalkin wrote: »

.....Or the 20 years of falling gold prices from 1980-2000? .......

My conclusion for that period was that Quantitative Easing worked then.
People had bigger steaks to fry than gold.
Gold was as cheap as chips.
Now the bubble boom has burst.
Now the drugs don't work any more.
Chips are the new steak.
Simples.
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lvader

DiggerUK wrote: »

Anyway I cannot remember a 20% drop in one month.

..._

It happened twice last year.

DiggerUK

lvader wrote: »

It happened twice last year.

When did this happen.
I think I must have been asleep.
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lvader

September and December

DiggerUK

sabretoothtigger wrote: »

.....over 100 hundred years things have been very grim for it to rise 1 to 250 in price

Actually it would cost you £260 to buy a £1 sovereign today.
What are you really smoking.
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MrMalkin

sabretoothtigger wrote: »

over 100 hundred years things have been very grim for it to rise 1 to 250 in price

Meanwhile, global stock markets would have risen from 1 to over 12,000.

That's why gold was grim.

DiggerUK

lvader wrote: »

September and December

Tosh.
Do your sums again.
Sep 1 £1120 Sep 30 £1040
Dec 1 £ 1115 Dec 30 £1020

(source LBMA)
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lvader

DiggerUK wrote: »

Tosh.
Do your sums again.
Sep 1 £1120 Sep 30 £1040
Dec 1 £ 1115 Dec 30 £1020

(source LBMA)
...

I said in a month, not in exactly a calander month. I was also looking in USD but it might still work oin GBP.