Gold, lost its Glister?

lvader

I've been accused of being a permabear when it comes to PMs and Silver in particular, but even I was buying yesterday.

Perelandra

lvader wrote: »

I've been accused of being a permabear when it comes to PMs and Silver in particular, but even I was buying yesterday.

Well, I couldn't take the pressure any more this afternoon, and liquidated my entire stock of precious metals... all gone.

NB: I only had 4g of silver.

grey_gym_sock

it would be pretty ridiculous to expect the dow:gold ratio to show no secular trend in the long term. 1 should expect it to rise over time, though with very wild oscillations along the way.

both shares and gold have in-built inflation protection, so by comparing them against 1 another, you're taking the (inflationary) dollar out of the equation. you're measuring the relative real returns of US shares (excluding dividends) and gold.

though dividends provide a large part of the return from equities, even without them, they're going to do way better than gold in the long term. but with a very wild ride along the way, given the extreme volatility of both equities and gold, and that they often move in opposite directions.

GDB2222

If people become increasingly wealthy, is gold going to be one of the luxury items they buy more of. As there's a limited supply, that means bidding more for the same pot of gold .....

merlingrey

GDB2222 wrote: »

If people become increasingly wealthy, is gold going to be one of the luxury items they buy more of. As there's a limited supply, that means bidding more for the same pot of gold .....

Not individual but countries, China has about $3 Trillion in cash, theres only about $7 trillion gold on the planet, they can buy half of it they are so loaded.

DiggerUK

atush wrote: »

What I want to know is, where are the Gold bugs today? After yesterday's crash in the price?......

Yesterdays crash in the price!....you need to keep up my dear.

Do my five posts not count, or am I no longer to be considered a goldbug....such praise is too, too much....I think I'm going to blush.

And whilst I wallow in such praise, I shall continue to try and figure out what is going on.....supply and demand anybody?
..._

DiggerUK

GDB2222 wrote: »

If people become increasingly wealthy, is gold going to be one of the luxury items they buy more of......

Possibly, but when you look at worldwide consumption of gold jewelry, you must look at the reasons why they buy. In the 'west' it is traditionally an overpriced luxury, in other parts of the world it is a traditional way of saving.

Believe it or not, many in Asia and the Far East, have an historical mistrust of banks. Can't think why.
..._

Fella

Barely had 2 secs to look at econmonic news including the falls in gold. Must admit my first thought is that whether you thought gold was a bubble or not, whatever the fundamental story for buying gold is certainly hasn't changed in the last week. Fiat currencies looking every bit as dodgy as ever & arguably still getting worse.

Personally I think there's a place for PMs in any portfolio although I prefer the majority of whatever I have my money in to be producing a yield in some form. Certainly wouldn't surprise me if gold bounced strongly but we'll see.

gadgetmind

DiggerUK wrote: »

am I no longer to be considered a goldbug

Say "fiat currency" five times fast and we'll make a judgement.

atush

DiggerUK wrote: »

Yesterdays crash in the price!....you need to keep up my dear.

Do my five posts not count, or am I no longer to be considered a goldbug....such praise is too, too much....I think I'm going to blush.

And whilst I wallow in such praise, I shall continue to try and figure out what is going on.....supply and demand anybody?
..._

Sorry, haven't seen a post from you today were they the ones removed/moved?

Dont get me wrong, I hold gold, but bought low and sold half when they went past 1400 some time back.


Won't catch me buying again this side of 1100. I prefer to buy low sell high, thanks