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Who's Buying Gold

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

  1. Rroff

    Man of Honour

    Joined: Oct 13, 2006

    Posts: 64,307

    My comment was mostly tongue in cheek though with some serious undertones - I've never really entirely understood the value held in gold.

    (I don't smoke or even drink coffee myself BTW but in a real stuff hit the fan situation they are one of the first things people start to miss - especially as increasingly people don't tend to hold much these days assuming they can just nip down the shop/order from Amazon when they get short).
     
    Last edited: Sep 4, 2016
  2. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 30,921

    cigarettes i understand as it contains a highly addictive drug. coffee however is nowhere near as addictive. tolerance can increase rapidly and users could easily go without them. same goes for cigarettes push comes to shove people would do without them if it meant food for their family, etc. they are only a commodity in prison really.

    weapons and people i could see as a more useful currency in an end of the world scenario.
     
  3. webmonkeyuk

    Wise Guy

    Joined: Aug 19, 2004

    Posts: 1,673

    Location: Stockton-on-tees

    Ive been looking into buying gold/silver coins or bars nothing big just the small gram/oz bars or a few coins but mainly looking at the silver ones as they aint too pricey, I'm mainly looking to keep them for a good while as ive got a few hundred pounds I'm looking to put some where. Ive got a isa but the interest rates are a joke, but ive never bought/sold gold or silver before so I'm just wondering is it worth it with such a small investment or do you really have to buy the big stuff to make any decent moneys out of it?

    looking at the price history it seems they have risen a bit again so might not be looking to do it just yet but is there anything I should look out for. More of a future investment/idea thing really.
     
  4. silversurfer

    Capodecina

    Joined: Jul 13, 2004

    Posts: 18,761

    Location: Stanley Hotel, Colorado

    Holding currency isnt an investment as such. Holding a commodity, silver is partly industrial is also speculation not investment.

    If you invest in a company mining silver then yea, even speculative short term holding thats more like it. The fastest growing stock on the LSE is silver, in fact I own some but and unfortunately I didnt pay enough attention and dont hold enough (didnt buy on the way up which is smartest). I think its quadrupled or more in 6 months, this is because of profit margin expansion.

    Like if you think of COKE, its very profitable as they can ramp the price up and its unique but the costs are quite fixed, cheap even. Silver price rose this year, that company is doing alot better with much better margins, commodities are very risky though. Silver isnt super rare, its subject to demand. Gold is mostly monetary driven, China is buying alot of Gold and will be for many years and so I dont view it as risky as it appears

    The quick answer is efficency. Coins are tiny with high costs. Owning a great big mining firm has economies of scale, its not hard for them to profit from a higher price.
    I will never use coins, the world is digital but I get why people want something in their hand but theres a limited use and always will be one. I have a gold sovereign from years back, no taxes can ever be levied on 'profit' as its simply a £1 coin but I think other types are less accepted, less liquid as a market but sovereigns are issued every year for centuries
     
  5. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 30,921

    i would avoid it at all costs atm. it's far too expensive atm which means it will go down rather than up. so you will be losing money if you were to invest now.

    why don't you look into p2p lending there is a big thread in GD about it. yields around 6-12% i believe and it's year on year. with gold you need to be constantly buying and selling or shorting, etc. It's a lot of work. It doesn't sound like you know what your doing so stay away from gold especially as it's at an all time high atm, its the worst time to be buying gold, selling however it's perfect.
     
  6. Gabbatek

    Wise Guy

    Joined: Feb 28, 2011

    Posts: 1,618

    Location: Norwich

    then why does the usa hate countries that try to use a gold backed currency instead of the petrodollar
     
  7. silversurfer

    Capodecina

    Joined: Jul 13, 2004

    Posts: 18,761

    Location: Stanley Hotel, Colorado

    Expensive is relative, Sterling is weak so gold appears expensive is a different view. I dont think gold will then go down in price just because Sterling has been weak, its a global price not British
    Its reasonable to consider also will Sterling be strong, then buying gold is not a good idea especially ie. losing money to invest now could match that scenario. If Sterling were weak and getting weaker then its especially reasonable to consider gold then.

    Problem is with gold appearing expensive is it reflects previous dilution of sterling. Ignoring any metals, Sterling has more then halved in worth since 1990. As well as that gold is being bought more now but I dont think its anywhere near full demand.
     
    Last edited: Oct 21, 2016
  8. regulus

    Sgarrista

    Joined: Aug 18, 2006

    Posts: 9,676

    Location: Wellington, NZ

    Guy I work with is about to sink all his savings into buying gold. He's basing his decision on a few YouTube videos. Me and him are always talking about finances and retiring early and he's convinced (and trying to convince me) that gold is the way to go. Been keeping an eye on the gold price the past few weeks and it seems high. I'm still convinced that property is a safe bet and will be going that route instead.
     
  9. ScoTTyBEEE

    Wise Guy

    Joined: Jun 1, 2004

    Posts: 1,964

    Location: London

    Property is at the top of a mega boom on top of a boom.

    Gold is at a low point.

    The government will need to find more tax income in the coming years due to Brexit and the easiest way to achieve this is to tax property. There's so much wealth in property, it can't be hidden and it can be taken off you with ease.

    Gold, well no-one need know you even have it.

    Gold isn't about making money. It's about keeping what you already have.
     
  10. joeyjojo

    Soldato

    Joined: Dec 2, 2005

    Posts: 5,519

    Location: Herts

    Assuming you're both young and looking for higher risk investments, you'd both be foolish to put large amounts of it into either gold or property.

    A diverse range of riskier investments (stocks, shares, funds) with a smattering of others (gold, property, peer to peer) would be much more sensible.

    If you're close to retirement then forget about it, you might as well go to Vegas and put it on red.
     
    Last edited: Oct 31, 2016
  11. aardvark

    Sgarrista

    Joined: Jan 2, 2005

    Posts: 7,887

    Location: leeds

    this year is the reason why everybody should own some gold, because you never know what's going to happen.
     
  12. silversurfer

    Capodecina

    Joined: Jul 13, 2004

    Posts: 18,761

    Location: Stanley Hotel, Colorado

    Volatility is rising, gold is more valuable for its innate inert qualities. Also its purchased year on year by central banks, dollar is a declining global standard which UK is tied to.
    2008 isnt a random one off, this surprising election, the brexit surprise i see as related and a trend continuing until perhaps the largest debts globally are unwound in the favour of capitalism
    So yep own at least some, your parents and grandparents did etc ; directly or indirectly
     
  13. wildman

    Soldato

    Joined: Nov 7, 2002

    Posts: 5,319

    Location: pantyhose factory

    considering how things are going I think I would rather stockpile firearms and other assorted weaponry. The social construct as we knew it is about to fall apart and it's going to turn into a dog eat dog world.
     
  14. joeyjojo

    Soldato

    Joined: Dec 2, 2005

    Posts: 5,519

    Location: Herts

    Sounds like Wildman - The Movie.
     
  15. SteveOBHave

    Soldato

    Joined: Mar 31, 2006

    Posts: 6,588

    Location: Sydney Australia

    Well, anyone owning Gold will be having a bad day... 1184 - 1190 seems to be the new baseline.
     
  16. silversurfer

    Capodecina

    Joined: Jul 13, 2004

    Posts: 18,761

    Location: Stanley Hotel, Colorado

    In dollars ? Check in sterling also, depends where you are in the world. Australia used to have high rates and better growth prospects, I had shares in a good company with profitable operations there (I worked with them previously ) till some rich conglomerate swallowed it whole

    Dollar/Gold is not a day trade, its a momentum is decade or so at least. The prospect should be good with more then a few central banks buying for a long time.
    Short term I agree gold is negative trend and Im guessing 2017 is a good place to accumulate but havent looked especially except Sterling continues to struggle but is weak or not yet staging a trend up

    Anywhere with really high growth might not need gold as a hedge, places in transition like UK leaving EU its more reasonable imo

    [​IMG]
     
    Last edited: Nov 23, 2016
  17. SteveOBHave

    Soldato

    Joined: Mar 31, 2006

    Posts: 6,588

    Location: Sydney Australia

    I have heard from the market analysis bunch that there is a BIG shift coming in the next few days. They're projecting a shift in the Dow from a 19400ish top to a 400 bottom with gold hitting around 1500 peak. They're suggesting that this is nearing as low as Gold is going... having said that Market Analysis seems very esoteric and chasing probabilities with strong whifs of tinfoil hats. Frankly if you have the readies then buy now but be prepared to lose some before you make profits. If you can't afford the risk then get out IMO. Better to sit tight and see what the 'herd' does than risk what you can't afford.
     
  18. silversurfer

    Capodecina

    Joined: Jul 13, 2004

    Posts: 18,761

    Location: Stanley Hotel, Colorado

    Statistics and probabilities yep

    In an hour, author goes live - The New Case for Gold, published in 2016.

     
  19. silversurfer

    Capodecina

    Joined: Jul 13, 2004

    Posts: 18,761

    Location: Stanley Hotel, Colorado

    Talk through of the backing of the dollar relative to gold etc.

    [​IMG]
     
  20. do_ron_ron

    Sgarrista

    Joined: Oct 23, 2002

    Posts: 9,314

    America has or is about to remove laws put in after the Crash to prevent it happening again. This would make another Crash or large adjustment likely in the years ahead.