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Who's Buying Gold

Discussion in 'Speaker's Corner' started by fester, Feb 4, 2009.

  1. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    As the title say's who's buying gold to protect them self's for the economic melt down in the Uk or Us or any where else I personally have bought a few oz's of the shiny stuff in the form of gold sovereigns and 1/2 sovereigns .Bought it just before and after Christmas and they have increased in value against the pound by over 20%.
     
  2. Morba

    Caporegime

    Joined: Mar 7, 2003

    Posts: 28,192

    Location: Krispy Kreme drive thru

    I sold all mine recently, had made over 10% on it, would have been more if i waited another month, but thats life!
    Didn't have much, but enough to make a difference when you have no job hehe

    was using bullionvault to buy and sell.
     
  3. teaboy5

    Soldato

    Joined: Jan 12, 2006

    Posts: 5,394

    Location: NI

    Protect you from what? You planning on paying for your shopping with it?

    While i agree it good to buy it, as it will always sell no matter what. But i dont think it will protect you from much.
     
  4. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    Currency devaluation and and inflation of any degree of severity in the next few years .As for shopping only if the is an Icelandic/Argentinean style run on the pound ;) but the main purpose is to save money for a mortgage deposit when the financial tsunami ends.
     
  5. starfighter

    Mobster

    Joined: Aug 4, 2008

    Posts: 4,934

    Location: Manchester.

    It protects from the falling value of the pound. but if it ever goes under no one is going to swap food for gold.

    Invest in chicken nuggets and fish fingers. :D
     
  6. Mr_T

    Hitman

    Joined: Feb 7, 2006

    Posts: 728

    Location: Perth, Australia

    I've been thinking about it recently... luckily I work very close to the Perth Mint which would allow me to physically have any gold I purchased, not that that's really important unless you're very paranoid, or have lost all faith in any institution! ;-)

    Although like starfighter said if the SHTF and a major currency goes under no amount of gold would make me give up my swiss army knife! lol
     
  7. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    Resurrection

    Sorry double post please delete
     
    Last edited: May 14, 2011
  8. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    Resurrected after two year's

    Just thought I'd resurrect this thread to see if the is any change of opinion on the subject after two year's and a 50% increase in the US$ price. :)
     
  9. GreatAuk

    Wise Guy

    Joined: Apr 3, 2009

    Posts: 1,953

    Location: Warrington

    Well, I wouldn't be buying it now as it seems to be at rather a high point, and it doesn't seem unreasonable to suspect that it's a bubble that will burst in a few years or so. But I am mainly basing this on the BBC article: http://www.bbc.co.uk/news/business-13156756
    (I am no economist!)

    I previously had no idea that the price of gold varied so much!
     
  10. Biohazard

    PermaBanned

    Joined: Aug 29, 2003

    Posts: 31,334

    cashforgold and DM I think.
     
  11. ntg

    Wise Guy

    Joined: Nov 24, 2008

    Posts: 2,462

    The answer is in your post. 50% increase in the US$ price.

    Now, is that because the US$ is falling or because gold is going up?
     
  12. rypt

    Capodecina

    Joined: Mar 22, 2008

    Posts: 11,535

    Location: London

    I fail to see how buying a useless metal will protect you
     
  13. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    How is it useless, the the modern world of electronics and computers would not exist or be what it is today is with out gold and silver.

    Give that the best high street savings accounts interest is below the the "official" rate of inflation and no-ware near the true rate.Gold seams to be the safest form savings as it has keep up with the true rate of inflation ie food and fuel costs.


    Quote from the bbc article from above.

    Throughout history emperors, kings and queens, governments, central banks and investors have trusted gold to maintain its value.
    This is simply because gold is a physical asset with a finite supply, unlike cash, equities and bonds, which can be printed or issued at will.
     
    Last edited: May 16, 2011
  14. Tefal

    Capo Crimine

    Joined: Jun 30, 2007

    Posts: 66,441

    Location: Wales

    Just remember historically when states suffer a major financial crisis they forcibly repossess peoples gold.
     
  15. scorza

    Caporegime

    Joined: Jun 22, 2004

    Posts: 26,685

    Location: Deep England

    Yes but:

    - High street savings account interest rates are normally guaranteed. Buying gold has no guarantees.
    - You have to pay to store gold
    - Land has a finite supply, yet people have lost their life savings in those recent land scams. Finite supply does not mean good value necessarily.

    Don't get me wrong, clearly investing in gold and other commodities has worked out very well for certain individuals. This is the problem, it has worked out so well that it has attracted price speculation and therefore gold has ceased to be the safe investment it used to be and is a volatile commodity like coffee, oil and sugar.
     
  16. Freakbro

    Capodecina

    Joined: Jul 29, 2010

    Posts: 14,484

    Location: Lincs

    Didn't Silver drop 30% in 1 day last week?

    Volatility in the speculation market knows no boundries.
     
  17. Morba

    Caporegime

    Joined: Mar 7, 2003

    Posts: 28,192

    Location: Krispy Kreme drive thru

    I'm impressed with the rises but not happy putting more money in gold yet really.
     
  18. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    'High street savings account interest rates are normally guaranteed. Buying gold has no guarantees'

    The only thing the savings account guarantees is a a loss of spending power over time due to the effective negative interest rate.
    Paper fiat currency (the £ pound) is also a volatile commodity subject speculation do you remember Black Wednesday .
     
    Last edited: May 16, 2011
  19. fester

    Gangster

    Joined: Nov 3, 2005

    Posts: 442

    Location: belfast

    No decreased about 30% in a week but it increased over 130% over the year.This was after 4 rises in margin requirements in the same short time frame to force sell off's by leveraged speculators .:D
     
    Last edited: May 16, 2011
  20. rypt

    Capodecina

    Joined: Mar 22, 2008

    Posts: 11,535

    Location: London

    the amount of gold used in corrosion prevention in electronics is fairly small, a fraction of that wasted on jewellery