investing in gold?

BillJones

paddyrg wrote: »

That's an impressive looking graphic but looking at it I realise I have no idea what it's saying! What point is it making?

It's trying to imply that the shiny metal that pays no dividend or coupon is somehow a fundamental store of wealth.

It doesn't have any explanations of what the arrows mean, as that would make it more likely that people would note that it's ridiculous.

paddyrg

BillJones wrote: »

It's trying to imply that the shiny metal that pays no dividend or coupon is somehow a fundamental store of wealth.

It doesn't have any explanations of what the arrows mean, as that would make it more likely that people would note that it's ridiculous.

So it's not just me then? Small business being on top of diamonds and listed stocks is just a typographical accident? Or is it saying small business is riskier than diamonds, which are riskier than gold, which has lost 25% 'value' in a year or so? I'd say that needs a lot of qualification.

bigadaj

paddyrg wrote: »

So it's not just me then? Small business being on top of diamonds and listed stocks is just a typographical accident? Or is it saying small business is riskier than diamonds, which are riskier than gold, which has lost 25% 'value' in a year or so? I'd say that needs a lot of qualification.

I'm not defending the graphic but we are all quoting value in what may be critically referred to as fiat currency. The intention of all the main hard currencies in the world is to try an devalue themselves at least in relation to other major currencies, so the bottom line is that we are describing things in relation to a supposedly fixed base which itself is aiming to be devalued by the relevant central banks and or governments.

gordongekko

Gold is not like having cash in the bank, far from it!

OP, when you mentioned it would be easy to sell, dont forget that most places pay less than the going rate so be careful.

I would say gold should account for 5% or less of your portfolio, but I would hold off buying now and look to buy on any dips this coming year.

I prefer coins over bars.

Flick216

As I understand there is no CGT when selling gold coins?

I'd like to have a small amount for gold - more for security really. I have visions of secreting my gold away then laughing triumphantly when the currency system crashes and gold prices massively inflate.

Of course this would probably go hand in hand with the complete breakdown of society which puts a downer on things.

From what I've heard, energy and minerals are the way forward.

puk999

Flick216 wrote: »

As I understand there is no CGT when selling gold coins?

Depends on the coin. There's no CGT on this 1oz Gold Britannia coin. There would be on Australian Kangaroos, Chinese Pandas, Canadian Maple Leafs, etc.

lvader

gordongekko wrote: »

Gold is not like having cash in the bank, far from it!

OP, when you mentioned it would be easy to sell, dont forget that most places pay less than the going rate so be careful.

I would say gold should account for 5% or less of your portfolio, but I would hold off buying now and look to buy on any dips this coming year.

I prefer coins over bars.

Buying dips douesn't preclude buying now, it's alrwady in a dip. Trying to time the market generally doesn't work.

sabretoothtigger

paddyrg wrote: »

So it's not just me then? Small business being on top of diamonds and listed stocks is just a typographical accident? Or is it saying small business is riskier than diamonds, which are riskier than gold, which has lost 25% 'value' in a year or so? I'd say that needs a lot of qualification.

It was produced by the FED many years ago I believe. Before they turned to the dark side :laugh:

Its the prequel to events now
Do I really like or want gold in comparison to owning property and maybe receiving a 10% yield on that, no I dont and who would but the value it keeps is less speculative then land is I think what that chart is suggesting.

We'd all say no thats rubbish now, the gold price is all over the place. But if the price has fallen in recent years that is a point in its favour against it being an endless bubble. Treasury Bond prices have risen since 1980 and I think are more inaccurate compared to gold.
Thats the general idea anyway, price accuracy resides with the lower echelons, the main drawback with land would be its fixed position. At one point St louis was an industrial capital, now its a bit of a ghost town, Ditto Detroit, ditto parts of industrial England I guess. So even land and housing can become a speculative asset and of course right now with gov finance this is likely.


Its precisely because gold is not that useful that it might command other prices. Storing endless amounts and living in a small shack would be a strange thing to do.
Gold gives no yield, so who would benefit from a price rise and yet scrape their way through life.

The gains in gold should pass onto reliable income and assets but the idea is it is most unflattering possession where as something like stocks we know they spin out of control easily and 1000% gains can be normal in some sectors, Im sure mining will see that (it did 2009 already)

planteria

sabretoothtigger wrote: »

......spin out of control easily and 1000% gains can be normal in some sectors, Im sure mining will see that (it did 2009 already)

yes please. Anglo American, Glencore Xstrata, and, erm, Avocet Mining:)

HamiltonPOLE

interesting