Gold Sovereigns

gadgetmind

MrInvestor wrote: »

Many top analyists are predicting hyperinflation in 5 years time. Who knows....?!

Generally speaking, not the top analysts.

Analysts are great at making money *from* other people not *for* other people.

atush

Dont forget to add in the costs of keeping/storing physical gold. As all insurance or deposit box fees have to be added in.

After all, if you keep it at home it could be stolen etc.

sabretoothtigger

hyperinflation is hyperbolic rhetoric. 10% is quite bad enough thanks, the market is all the way down the other end expecting near 0%.

It doesnt take much to upset the boat, they probably wont destroy our currency and it will still be grim and its beneficial to hold some gold for that 'mild' quite probable scenario.

The more extreme they make the argument, the more people wont understand the snowball effect of it all.
Its not extreme what will happen just normal gravity and rebalance. There is no conspiracy to it more like a perfect storm maybe

7% over ten years and your cash is worth half, its very easy for gold to be of some use to people. Holding physical isnt much of a requirement barring the mad max story, what will occur will be ordinary and easy. I see credit cards of some kind working fine as normal for years ahead, they are much more efficient in small scale then metal trading

but is it too late now?

No its not too late, its an on going effect. It will be obvious when its become too much. The price doesnt represent value. Excluding recent years, cash lost half its value since 1990 hence the gold price doubling meant nothing overall.

holding physical gold as an investment

Its a block of metal. Its cash at best, at worst its a doorstop or a paperweight. People have used it for cash for many years and central banks buy it then issue notes against it as an asset so that is likely to continue increasingly as we have veered into politics and political debt.
The return you get it is the inverse of losses to those holding printed cash notes of promise aka debt.
So cash or highly liquid asset but not an investment

http://en.wikipedia.org/wiki/A_rising_tide_lifts_all_boats