Lepista

Gold strategy in the current economy

12,404 posts in this topic

In most peoples hands gold is useless, but that's not the point of it.

Can we move on?

Once we have facts, we can formulate strategy.

First fact (I think everyone is agreed upon) is that gold is a permanent bubble.

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Once we have facts, we can formulate strategy.

First fact (I think everyone is agreed upon) is that gold is a permanent bubble.

A permanent bubble suggests it's fairly reliable, I can agree with your first fact.

Edited by killerbee

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A permanent bubble suggests it's fairly reliable, yes we are agreed!

Sure.

The only thing that could stop it being a bubble is if the general population starts to think a bit.

Not too likely in my lifetime. However, it does mean that to hold gold is to be anti empirical and anti rational to continue to profit.

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Sure.

The only thing that could stop it being a bubble is if the general population starts to think a bit.

Not too likely in my lifetime. However, it does mean that to hold gold is to be anti empirical and anti rational to continue to profit.

Fine, does this mean we're moving on?

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Fine, does this mean we're moving on?

It means that everyone who wants a more rational world and happier people in it who doesn't actually want and enjoy gold for the gold itself shouldn't have any.

So I know what I will be doing. I don't consider us to be a we, though really. You aren't in the same league as I am, frankly. Probably not the same sport, even.

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It means that everyone who wants a more rational world and happier people in it who doesn't actually want and enjoy gold for the gold itself shouldn't have any.

So I know what I will be doing. I don't consider us to be a we, though really. You aren't in the same league as I am, frankly. Probably not the same sport, even.

I agree, you are in a league of your own.

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The fact that you didn't actually answer the question, obviously.

Well if you would care to read back you will see i have answered your question. To refute this fact makes you look nothing more than cantankerous.

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... to hold gold is to be anti empirical ...

I have observed your experiment and am prepared to be guided by practical experience.

Perhaps a broadening of the investigation would be helpful.

Considering one context in which the subject under investigation is a factor, can anyone summarise:

a. why central banks were thought to be necessary

b. why co-operation among them evolved

c. what developments would render them or their current function obsolete.?

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Excellent answer, thank you.

I can't see the actual price being demanded matching up to this set of criteria, however. There are other PM's without the sentiment issues.

Uses of gold & reasons why others may want a position in it too.

Most cell phones, computers, calculators, television, and other electronic items contain gold.

Gold is used in window glass and astronaut helmets to reflect infrared rays while allowing sunlight to pass through.

Gold is a good conductor of electricity and heat.

There is a monetary system called the ‘gold standard’ which fixes a unit of money to a certain weight of gold.

Injectable gold has been proven to help reduce pain and swelling in patients suffering from tuberculosis and rheumatoid arthritis.

Gold won't tarnish, rust, or corrode and is very strong when alloyed. In fact, it is also surprisingly the most malleable of all metals.

Gold melts at 1064.43° Centigrade. It can conduct both heat and electricity and it never rusts.

Dentists use about 2 per cent of the gold mined each year (about 60 tons). A gold crown is usually 75 per cent gold, with a mixture of silver, palladium and zinc to harden it.

All the world's gold and platinum ore came from outer space after a mammoth meteorite shower battered the Earth more than four billion years ago.

Nearly one billion cell phones are produced each year and most of them contain about fifty cents worth of gold. Their average lifetime is under two years and very few are currently recycled

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Once we have facts, we can formulate strategy.

First fact (I think everyone is agreed upon) is that gold is a permanent bubble.

A what? how can something permanent be a bubble?

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Why does something that no one wants provide you with financial security?

Compared to (for example) things that they actually do want?

Waffle alert from the amateur psychologist...you need to give it a rest injin as you come across as a right tool :rolleyes:

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A what? how can something permanent be a bubble?

I think it's way of saying it will always be in demand, lol.

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Waffle alert from the amateur psychologist...you need to give it a rest injin as you come across as a right tool :rolleyes:

This ^

Also I feel the quoted sentence should read "Why does something that I DO NOT want provide you with financial security?"

Injin strikes me as incredibly naive / financially ignorant to make such statements, attempting to wrap it it pseudo psychological nonsense doesnt help his cause either.

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It means that everyone who wants a more rational world and happier people in it who doesn't actually want and enjoy gold for the gold itself shouldn't have any.

So I know what I will be doing.

Does this mean that you will finally be selling your own hoard of gold?

Given your beliefs, why didn't you sell it before?

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Well if you would care to read back you will see i have answered your question. To refute this fact makes you look nothing more than cantankerous.

No, you didn't (and I said why in my response.)

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I have observed your experiment and am prepared to be guided by practical experience.

Perhaps a broadening of the investigation would be helpful.

Well, given I have asked the people who I can easily access who are most interested in gold and they are coming up with not a right lot (or are even admitting that gold doesn't have much organic demand) I can't see why it would be helpful to go asking people on the high street a la market research. I'm not averse to doing so, but I'd need convincing of the reasons why.

Considering one context in which the subject under investigation is a factor, can anyone summarise:

a. why central banks were thought to be necessary

Because of poor parenting coupled with centralising philosphies taking hold of popular thought - marx, smith etc

b. why co-operation among them evolved

Because they don't work and can only continue to operate by crowding out any free market system - this means total dominion or bust.

c. what developments would render them or their current function obsolete.?

Better parenting, a withdral of collectivist thinking from society. Not happening any time soon.

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Uses of gold & reasons why others may want a position in it too.

Most cell phones, computers, calculators, television, and other electronic items contain gold.

Gold is used in window glass and astronaut helmets to reflect infrared rays while allowing sunlight to pass through.

Gold is a good conductor of electricity and heat.

There is a monetary system called the ‘gold standard’ which fixes a unit of money to a certain weight of gold.

Injectable gold has been proven to help reduce pain and swelling in patients suffering from tuberculosis and rheumatoid arthritis.

Gold won't tarnish, rust, or corrode and is very strong when alloyed. In fact, it is also surprisingly the most malleable of all metals.

Gold melts at 1064.43° Centigrade. It can conduct both heat and electricity and it never rusts.

Dentists use about 2 per cent of the gold mined each year (about 60 tons). A gold crown is usually 75 per cent gold, with a mixture of silver, palladium and zinc to harden it.

All the world's gold and platinum ore came from outer space after a mammoth meteorite shower battered the Earth more than four billion years ago.

Nearly one billion cell phones are produced each year and most of them contain about fifty cents worth of gold. Their average lifetime is under two years and very few are currently recycled

Absolutely superb answer, thank you.

There is indeed some organic demand. I highly doubt whether it has much of anything to do with golds price, which is sentiment (i.e. scared investor with a head full of marbles) driven.

You are completely correct, though.

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A what? how can something permanent be a bubble?

A bubble is when something is priced beyond that which it's fundamentals indicate is appropriate.

That is, inorganic demand far outstrips organic demand. So for example - house prices have been going up because people with no interest in housing per se for the housing itself have been seeking returns based on ever increasing prices, BTL and the like (a lot of whom as particleman has pointed out are seeking retirement income.) The fundamentals of the housing market are the ability of the average wage earner to buy the average house - plenty of metrics around showing that's 3-4x single blokes earnings, not 11x joint. We can say it's a bubble, therefore.

Gold doesn't ever seem to have been priced based on the jewelers/industrial demand for it. Or did I miss something?

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Waffle alert from the amateur psychologist...you need to give it a rest injin as you come across as a right tool :rolleyes:

I don't care how I come accross and I am a professional psychologist.

:)

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I think it's way of saying it will always be in demand, lol.

Yes, yes it is.

It's also a way of saying that gold is as volatile as ******, being based on nothing more than fools seeking greater fools.

Plenty of other PM's will do the job, without the corrosive effect on the personality that being invested in the decline of your own society and the foolishness of others will have on you. Yes, you might miss an upside, but you won't be *****ing into a sock at the thought of your neighbours going hungry.

What's your humanity worth, hmm?

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Absolutely superb answer, thank you.

There is indeed some organic demand. I highly doubt whether it has much of anything to do with golds price, which is sentiment (i.e. scared investor with a head full of marbles) driven.

You are completely correct, though.

Thanks injin

Thought that's what you wanted.

I like your arguments. You've helped me to remember golds special qualities

& i think balanced arguments are always needed when investing in anything.

With regards to the price being driven by investors, I think there are definitely giants

Accumulating gold for the reasons I listed & more ( Gold for oil & vice versa )

when it becomes scarce I want a piece of the action

Edited by Crashman Begins

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There is a monetary system called the ‘gold standard’ which fixes a unit of money to a certain weight of gold.

You are completely correct, though.

No country currently uses the gold standard as the basis of its monetary system

The History of the obsolete gold standard

Perhaps this is a better starting point for understanding the role of this particular element and the traditions in which it became embedded. Or as one commentator by name of Bernanke asserted, it is itself "a tradition".

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The History of the obsolete gold standard

Perhaps this is a better starting point for understanding the role of this particular element and the traditions in which it became embedded. Or as one commentator by name of Bernanke asserted, it is itself "a tradition".

A gold standard is a fiat money system - that is gold has value because you have to pa taxes, licences, fines and debts with it.

Again, no evidence of organic demand. Quite the reverse, in fact.

Do you really want your wealth to be based on a one way punt that if it succeeds will only do so because of violence enacted on others?

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I don't care how I come accross and I am a professional psychologist.

:)

I know a married couple who are both professional psychologists. This tells me all i need to know about you. Happy hpc posting injin :)

p.s. When you asked the question, why would anyone hold gold? I answered it based on why i (i being anyone) would hold gold.

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I know a married couple who are both professional psychologists. This tells me all i need to know about you. Happy hpc posting injin :)

p.s. When you asked the question, why would anyone hold gold? I answered it based on why i (i being anyone) would hold gold.

No, you didn't.

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