Gold Fades From Investment Picture

grey_gym_sock

believing that we'll use a gold-back currency again is not nutty (though i don't happen to believe it myself). being completely certain about it is nutty. betting everything on it is nutty. encouraging everybody else to do likewise, and deriding all alternative investment strategies, is nutty.

DiggerUK

Goldbugs should not be confused with goldbulls, they are entirely different animals.

The revelations that one Andrew Maguire has never worked in finance or banking, and is in fact a hoax on the gold nuts, is proving to be a huge embarrassment to them.
'Maguiregate' as I describe it, won't stop the conspiracy nutters repeating their nonsense for now, but it will turn out to be a Tet Offensive moment for them. And about time to.

http://www.kitco.com/news/2013-10-24/KitcoNews20131024DA-CPM-Group-Alleges-Whistleblower-Maguire-Has-No-Metals-History-Silver-Summit.html

http://www.kitco.com/news/2013-10-24/GATA-Responds-Maguire-A-Class-Act.html

It is a goldbear market for now, but with funny money distorting the worlds markets, I am still a long term goldbull.
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M.Johnson_2

For gold bullion prices to rise by 100%, gold would need to rise to $2,620 an ounce. Although I feel this is very achievable, it’s a price level we have yet to see. But the investible silver market is truly tiny because of all that industrial demand. In dollar terms, it’s only 4.5% of the size of the gold market.
So for silver prices to rise 100%, they would only have to move to $44 an ounce—a price level we already saw in 2011 and even more than that 33 years ago. And that’s exactly where I believe we are heading.

http://moneyweek.com/price-of-silver-could-double-soon/

There are millions of tons of gold in play around the world not as rare as official numbers show, but silver is a lot more rare than gold.

doughnutmachine

M.Johnson wrote: »

There are millions of tons of gold in play around the world not as rare as official numbers show, but silver is a lot more rare than gold.

millions of tons of gold? silver rarer than gold? do you have any proof of this?

gadgetmind

"What's next for gold?"

http://online.wsj.com/news/articles/SB10001424052702303843104579167642475787628

"A small allocation to gold won't kill an investor's portfolio, but experts say you should think twice before leaning on it heavily to hedge against inflation, economic collapse or any other specific fear. Most stated goals of gold investors can be accomplished with other, potentially cheaper, asset classes."

sabretoothtigger

grey_gym_sock wrote: »

. betting everything on it is nutty..

Is it ok to bet everything on sterling being worth more in five years (savings, fixed even)

Does a more common mistake make it less of a mistake or worse even

encouraging everybody else to do likewise, and deriding all alternative investment strategies, is nutty

The BOE themselves warned on relying on cash values after their QE program and adjusted their own pensions to index linked. Top marks for honesty but not many got the message

silver is a lot more rare than gold.

Theres an entire mountain of silver in south america I believe.
The locals are slowly mining it and dying of silver inhalation but big business wants to nuke the entire area and run the dirt through a mill for billions no doubt.

I believe they are doing similar big operations in the Andes for gold but not quite the entire mountain top. Silver is far more numerous and economical because of all the other metals found alongside it where gold is more often exclusive and sparse

The worlds largest silver miner, quoted here in UK is also doing gold is far larger quanities now and making alot of new profits from it. Its still nothing in weight quantity compared to silver, just a much higher price justifies it

If we want to talk negative about gold, then when or if they liquidate the USA reserves that will bring the price down.
In 1970 dollars, the USA debt is falling on a five year average because of these reserves (in theory) USA really does arbitrage a profit from money printing. Its a rip off basically

DiggerUK

sabretoothtigger wrote: »

........
If we want to talk negative about gold, then when or if they liquidate the USA reserves that will bring the price down.
In 1970 dollars, the USA debt is falling on a five year average because of these reserves (in theory) USA really does arbitrage a profit from money printing. Its a rip off basically

And as Hawaii is a part of the USA, they can easily sell of the entire reserves they admit to. After all they have a secret stash of 170,000 tonnes in the islands.
Never mind the fact that this is more than the entire above ground stocks of gold ever mined, it has to be true because a 'whistleblower' from The Bank of International Settlements has blown this secret wide open. Together with the revelation that the Jesuits control China.

Please, if anybody is going to invest in gold, consider my opinion that it is best done for 5 years+, you won't make a fast buck, and will at best make a few pennies over inflation.
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gadgetmind

If I remember Cryptonomicon correctly, wasn't that gold in the Philippines?

http://en.wikipedia.org/wiki/Yamashita%27s_gold

I do find keeping track of imaginary gold difficult though, so you'll have to forgive me.

doughnutmachine

DiggerUK wrote: »

And as Hawaii is a part of the USA, they can easily sell of the entire reserves they admit to. After all they have a secret stash of 170,000 tonnes in the islands.

last time I looked gold was worth circa £20m a tonne. So this stockpile is worth £3,400,000,000,000.

grey_gym_sock

sabretoothtigger wrote: »

Is it ok to bet everything on sterling being worth more in five years (savings, fixed even)

it depends when you'll want to spend the money. if that's in 5 years' time, then that is arguably too short for proper investing, so what are you looking at? index-linked savings certificates are perhaps best, if you have access to them. failing that, fixed-rate savings accounts might be the least-worst option. the real return is unknown (since inflation is unknown), but it's a lot more predictable than the real return on gold over 5 years.

gadgetmind wrote: »

I do find keeping track of imaginary gold difficult though

isn't there an app for that?