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Gold, lost its Glister?
Comments
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Glen_Clark wrote: »Most of those buying gold do so in the hope of selling it on - not many want a useless lump of metal for its own sake. So the price of gold depends on one factor - the bigger fool factor. You depend on a bigger fool than you being prepared to pay an even more ludicrous price than you did.
Once the gold has been bought by the biggest fool of all the price will crash. There is nothing else to support it.
That may be the case for mining shares, etfs, and other indirect holdings. Physical gold is still held in vast amounts by individuals and families in Asia as a store of wealth, as it has done for hundreds of years. India is by far the biggest importer of gold in the world predominantly for this reason.
It's also a lot more complicated than that, new mines get fast tracked or mothballed dependent on the current prices or futures, a mining boom means costs shoot up, then fall to normal levels as the mania subsides.
Gold certainly has value, it's not a pure ponzu scheme, it's just determining when that is true, or under or over valued. My view is that it is still over valued currently, and I wouldn't consider purchasing over a thousand dollars, patticulalry as extraction costs are generally only a few hundred dollars.0 -
Wowzer, I've been investing alongside gold bugs for decades, and they have always come across as teeny bit deranged, but those guys are serious going for it!
The price of gold is falling because more people are selling (to buy other assets) than are buying. The correct approach is to look at your asset allocation and decide whether it's time to rebalance or not. However, if all you have is gold in the toilet cistern, I guess your options are limited.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 -
Glen_Clark wrote: »Most of those buying gold do so in the hope of selling it on - not many want a useless lump of metal for its own sake. So the price of gold depends on one factor - the bigger fool factor. You depend on a bigger fool than you being prepared to pay an even more ludicrous price than you did.
Once the gold has been bought by the biggest fool of all the price will crash. There is nothing else to support it.
Gold is culturally hugely significant to the Chinese and the Indians and the only reliable and trusted alternative to fiat currencys. Going forward, that sounds like a pretty useful lump of metal.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
Going forward, that sounds like a pretty useful lump of metal.
Without doubt. It's useful as jewellery, useful in industry, and useful for flashy teeth.
But as a block stored in your bunker next to your beans and bullets, it's not much use, generates no income, and might be worth less than you paid for it for several decades.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 -
How many people could tell the difference between real gold jewellry and poundshop bling? In practical terms, one does the job as well as the other.
So its use in jewellry still depends on people being prepared to pay more for it than it is really worth.“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
Glen_Clark wrote: »Most of those buying gold do so in the hope of selling it on - not many want a useless lump of metal for its own sake. So the price of gold depends on one factor - the bigger fool factor. You depend on a bigger fool than you being prepared to pay an even more ludicrous price than you did.
Once the gold has been bought by the biggest fool of all the price will crash. There is nothing else to support it.
You sound like a bit of an expert on gold.
Yet in the next post after this one I've quoted, you ask "what is a PM"0 -
Yet in the next post after this one I've quoted, you ask "what is a PM"
Outside of gold/silver bug circles, PM is not a widely known abbreviation for precious metals.
I certainly don't recall hearing this abbreviation used in real life or in mainstream media.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 -
gadgetmind wrote: »Outside of gold/silver bug circles, PM is not a widely known abbreviation for precious metals.
I certainly don't recall hearing this abbreviation used in real life or in mainstream media.
I appreciate that.
But the guy I quoted was giving his opinion about gold as an investment as if he was an expert.
.... and yet did not know what "PM" meant.
It doesn't really inspire confidence in what he has to say about gold, does it?0 -
gadgetmind wrote: »Without doubt. It's useful as jewellery, useful in industry, and useful for flashy teeth.
But as a block stored in your bunker next to your beans and bullets, it's not much use, generates no income, and might be worth less than you paid for it for several decades.
When you run out of bullets it will be something decent to hit the looters with!Thinking critically since 1996....0 -
somethingcorporate wrote: »When you run out of bullets it will be something decent to hit the looters with!
Or make bullets out of it? However gold is similar to lead in terms of malleability and density, so you're producing dum dums and outside the geneva convention, if this still applies in this scenario.0
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