Gold, lost its Glister?

gadgetmind

Ooo, look, you can see the Brown Bottom.

http://en.wikipedia.org/wiki/Sale_of_UK_gold_reserves,_1999-2002

robtgossard

Gold is at its multi-year low. It’s time to pile up some yellow bricks in my safety deposit box…..

robtgossard

Gold is at its multi-year low. It’s time to pile up some yellow bricks in my safety deposit box…..

Chickereeeee

You would have been better of with a FTSE 100 index tracker over the past three years, rather than holding gold. Plus you would have gotten dividends....

merlingrey

Economic trends 2012-13
by Dr. petrov:

http://www.youtube.com/watch?v=OQQMcMnxVrg

Macroeconomic cyclical analysis of gold lecture (from early 2008):

http://www.youtube.com/watch?v=dSCYY1JCMFU&list=PL1FED4EAD07FA3C3A&index=3

sabretoothtigger

1 pound coin is 30 years old, now buys 75% less fuel. Not sure about UK because we raised taxes but usa petrol costs the same as 1964 if that person saved a silver dime.
For us, using a gold sovereign helped mitigate some of the rise

http://money.aol.co.uk/2013/04/17/pound-coin-was-introduced-30-years-ago/

Not many of us keep cash that long, we are net debtors so arguments get tangled up in what happened this year.
Overall its clear what makes a better form of cash

Chickereeeee wrote: »

You would have been better of with a FTSE 100 index tracker over the past three years, rather than holding gold. Plus you would have gotten dividends....

Not 3 years, we havent fallen that much. FTSE is more liquid though and it gives a proper return. Some banks I think do lend out their gold and receive interest for it so I guess its doable in bulk

http://www.rapidtrends.com/gold-carry-trade-what-is-it/


Almost 0% cost, nice

Forward hedging is when a producer presells gold on the spot market that has yet to be extracted from the earth. Most of the buyers want delivery of physical gold. So the producer leases gold from a CB, with the idea that it will pay the CB back with future production.

Thats interesting, they are able to borrow more cheaply via gold then cash

gadgetmind

sabretoothtigger wrote: »

Not many of us keep cash that long

Point of order!

This is a gold thread so we need to refer to cash as "fiat currency" or "government IOUs".

Just sayin'.

merlingrey

Chickereeeee wrote: »

You would have been better of with a FTSE 100 index tracker over the past three years, rather than holding gold. Plus you would have gotten dividends....

From what reference point?

3 years ago was apr 28 2010 the FTSE was 6070, so it has risen 6.2%

Gold on Apr 30th 2010 was £770 an ounce and it is now £944

so a near 24% increase in real sterling terms from those points.

gadgetmind

merlingrey wrote: »

3 years ago was apr 28 2010 the FTSE was 6070, so it has risen 6.2%

And it's paid out around 12% on top of this as dividends,

sabretoothtigger

That is a nice return and also ftse is alot lower spread then gold. For anyone dealing 10k not 10mil

Those dealing the largest amounts suffer the least losses overall on this deal, seems thats the case increasingly.
I wonder if those with trillions are going to lose most % to purchasing 'slippage' or the people saving 10k

gadgetmind wrote: »

"fiat currency" or "government IOUs".

Just sayin'.

worthless fiat I believe is the term.

I reckon benjamins is most fitting as it serves both the former master and the present