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Gold still going up, why?

2

Comments

  • dolce_vita wrote: »
    Yeah. I can just see my missus face when I give her a beautiful lead necklace for christmas.

    :rotfl: :p:D :eek:

    Well at least it will be a weight off your shoulders...:o
    ...and then the window licker said to me...
  • ManAtHome wrote: »
    Dunno - I still reckon that lead will be more valuable if there's a real meltdown...

    Strangely enough, gold didn't move much at all during WW1 and 2.

    The gold standard I believe, either that or they were more concerned at building bombs then stockpiling gold.

    Lead price will shoot up in a nuclear holocaust, but ill be buying bismuth ;)
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Gold was over $800 in 1979 and $300 in 2000 ( I think this was when Mr Brown decided to sell off UK reserves) doesn't look like a safe haven to me.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • musemad
    musemad Posts: 177 Forumite
    Gold is actually one of the most useless things in the world it produces no income is unsafe to store and does not actually do anything as regards income and capital gain is concerned.
    I would hazard a guess at the demand coming from what I would call emmerging markets rather than advanced ones.
    As places like china and india have an increasing "New rich prolitariat" these people want to flaunt their wealth a bit.
  • purch
    purch Posts: 9,865 Forumite
    Gold is actually one of the most useless things in the world

    Supply and Demand...

    As long as there is more demand than supply.............:T
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • dolce_vita
    dolce_vita Posts: 1,031 Forumite
    The case for gold:



    "Over thousands of years, in billions of transactions by millions of humans, many commodities have been used as money: stones, salt, cattle, and seashells among them. But wherever gold was available, it tended to displace other media of exchange. Like any successful money, gold never needed to be decreed “legal tender” by a government; it was recognized as the most desirable money by common consent because of its unique properties.
    Certain materials have proven especially well suited for certain uses. Aluminum is good for airplanes, bricks for construction, paper for books, and gold for money. If bricks were used for airplanes and aluminum for books, the results would be as suboptimal as when paper is used for money.
    [FONT=arial,helvetica,verdana]In fact, the properties required of money were first described by Aristotle in the fourth century BCE.[/FONT]
    • [FONT=arial,helvetica,verdana]It is durable.[/FONT][FONT=arial,helvetica,verdana] It won’t evaporate, mildew, rust, crumble, break, or rot. Gold, more than any other solid element, is chemically inert. This is why foodstuffs, oil or artwork can’t be used as money.[/FONT]
    • [FONT=arial,helvetica,verdana]It is divisible.[/FONT][FONT=arial,helvetica,verdana] One ounce of gold—whether bullion, coin, or dust—is worth exactly 1/100th of one hundred ounces. When a diamond is split, its value may be destroyed. You can’t make change for a piece of land.[/FONT]
    • [FONT=arial,helvetica,verdana]It is convenient.[/FONT][FONT=arial,helvetica,verdana] Gold allows its owner physically to carry the wealth of a lifetime with him. Real estate stays where it is. An equivalent value of copper, lead, zinc, silver, and most other metals would be too heavy.[/FONT]
    • [FONT=arial,helvetica,verdana]It is consistent.[/FONT][FONT=arial,helvetica,verdana] Only one grade exists for 24-carat gold, so there is no danger of owning 24-carat gold varying in quality. Twenty-four-carat gold (pure gold) is the same in every time and place since gold is a natural element, unlike gems, artwork, land, grain, or other commodities.[/FONT]
    • [FONT=arial,helvetica,verdana]It has intrinsic value.[/FONT][FONT=arial,helvetica,verdana] Gold finds new industrial uses each year. Of all the metals, it is the most malleable (able to be hammered into sheets less than 5-millionths of an inch thick), most ductile (a single ounce can be drawn into a wire 35 miles long), and the least reactive (it can stand indefinite immersion in seawater, does not tarnish in air, and can withstand almost any acid). Next to silver, it’s the most conductive of heat and electricity and the most reflective of light.[/FONT]

      [FONT=arial,helvetica,verdana]These superlatives make gold uniquely well suited as a medium of exchange and a store of value. Arguments that gold’s value is “mystical” are silly; it is simply one of the 92 natural elements.[/FONT]

      [FONT=arial,helvetica,verdana]One important last point was not listed by Aristotle, probably only because he lived before the creation of paper and banking.[/FONT]
    • [FONT=arial,helvetica,verdana]Gold cannot be created by government.[/FONT][FONT=arial,helvetica,verdana] Gold can, of course, be debased with impurities or falsified in weight, and governments strapped for revenue have tried those tricks. But a trader can protect himself with a pair of scales or a vial of acid, although a familiar and trustworthy hallmark of a coin saves him that trouble. Unlike currency, gold cannot lose value because of government mismanagement. On the contrary, it tends to gain value because of government mismanagement.[/FONT]
    [FONT=arial,helvetica,verdana]But isn’t that latter point largely academic, since gold isn’t presently used as money anywhere in the world? I think not. Even though the concept still receives little discussion, and none in “official” circles, gold is likely in the foreseeable future to reassume its traditional role as money worldwide. (And not just in bullion form, but in modern, safe and reliable bullion proxies and electronic transaction services such as those offered by goldmoney.com.)[/FONT]
    [FONT=arial,helvetica,verdana]I have no doubt that gold will again regain its traditional role of money, but only after it is trading at far higher prices than it is today. Wait and see"[/FONT]

    Doug Casey
    dolce vita's stock reply templates

    #1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided

    #2. This time next year house prices in general will be lower than they are now

    #3. Cheap houses are a good thing not a bad thing
  • StevieJ wrote: »
    Gold was over $800 in 1979 and $300 in 2000 ( I think this was when Mr Brown decided to sell off UK reserves) doesn't look like a safe haven to me.

    Like all markets you have to buy and sell at the right time but since china is now kinda capitalist, thats like another 2 billion people that will give their right tooth for the yellow stuff.

    Selling all that gold is bound to effect the price. But it costs over $400 dollars to mine an ounze of gold in america, south africa or austrailia although considerably less in china and peru. It was said to be a bit of a coo that the BOE warned against but brown did not listen, ie the markets shorted the price so that they could profit from browns arrogance.

    I didnt design this merrygo round of markets boom and bust, but i recognise it look at the same repetition in historical patterns and I certainly dont have any bank stocks right now since alot of the banks are technically insolvent on the back of their loans fiasco which they can no longer find backers for thus have to back themselves. Apparently they wont be able to stop this being released by the end of october. I dont know myself just going from what all the articles are saying, I sold my holdings right at the opening bell of this turmoil. Time will tell all... I dont think ill be getting back in to credit markets for at least 2-3 years I hope they might have learnt their lesson by then, pyramid lending to people that cant afford it doesnt work in the long run. I dont consider cash to be king at the moment either since its possible that inflation could be used to correct the mess.
  • nickj_2
    nickj_2 Posts: 7,052 Forumite
    gold is the same as land , they're not making it any more
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    Might not be making it, but they're still finding more of it...

    And "they" are making land - pretty close to Hawaii, which must be a better idea than round our way.
  • dolce_vita wrote: »
    Yeah. I can just see my missus face when I give her a beautiful lead necklace for christmas.

    Lol this tickled me :rolleyes:
    Quidco:
    Start Date: 03/09/07
    £51.12 GBP:D
    Comping wins:
    Start Date: 03/09/07
    Trend micro internet suite, Eminem Encore album, john Legend single :rolleyes:
    Test & Vote:
    Start Date: 05/09/07
    2000 :o
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