headmelter Posted January 24, 2009 Share Posted January 24, 2009 After all that's been posted on here about gold over the last 4 years I fail to understand why anyone who reads this forum doesn't now own physical gold and posters continually attempt to discredit gold as a store of wealth. Gold has performed positively for seven years and with the knowledge this forum has provided related to the current state of the UK and global economy why are there still so many gold bashers. Mods please leave for a reasonable time. Quote Link to comment Share on other sites More sharing options...
mbga9pgf Posted January 24, 2009 Share Posted January 24, 2009 (edited) After all that's been posted on here about gold over the last 4 years I fail to understand why anyone who reads this forum doesn't now own physical gold and posters continually attempt to discredit gold as a store of wealth.Gold has performed positively for seven years and with the knowledge this forum has provided related to the current state of the UK and global economy why are there still so many gold bashers. Mods please leave for a reasonable time. Gold is a popularist store of wealth with little material use. I far prefer Platinum and copper, industrially essential materials and currently at massive historic lows. The problem I have with gold is the fact it is undoubtedly in a bubble of its own at the mo. Just look at previous gold booms to see what happens to the price next after spikes. I would much prefer to invest in platinum at the mo, as production is being scaled back and when demand picks up, its going to go through the roof. THe only issue I have is it is traded in USD. could be a problem if it turns out that Obama cant find enough money for all the T-bills he will need to fix their economy. Could be a bit of an issue if we see strenghtening gbp vs USD Edited January 24, 2009 by mbga9pgf Quote Link to comment Share on other sites More sharing options...
tccambs Posted January 24, 2009 Share Posted January 24, 2009 I think it's more that: WE GET IT ALREADY! GOLD IS GOOD. LET'S TALK ABOUT HOUSES! Quote Link to comment Share on other sites More sharing options...
Minos Posted January 24, 2009 Share Posted January 24, 2009 After all that's been posted on here about gold over the last 4 years I fail to understand why anyone who reads this forum doesn't now own physical gold and posters continually attempt to discredit gold as a store of wealth.Gold has performed positively for seven years and with the knowledge this forum has provided related to the current state of the UK and global economy why are there still so many gold bashers. Mods please leave for a reasonable time. Why do you need to get the approval of others if you are sooooooooo sure you are doing the right thing? Quote Link to comment Share on other sites More sharing options...
Authoritarian Posted January 24, 2009 Share Posted January 24, 2009 (edited) Gold is a popularist store of wealth with little material use. I far prefer Platinum and copper, industrially essential materials and currently at massive historic lows.The problem I have with gold is the fact it is undoubtedly in a bubble of its own at the mo. Just look at previous gold booms to see what happens to the price next after spikes. I would much prefer to invest in platinum at the mo, as production is being scaled back and when demand picks up, its going to go through the roof. THe only issue I have is it is traded in USD. could be a problem if it turns out that Obama cant find enough money for all the T-bills he will need to fix their economy. Could be a bit of an issue. Is platinum used much more extensively in manufacturing then than gold? Edited January 24, 2009 by chefdave Quote Link to comment Share on other sites More sharing options...
tccambs Posted January 24, 2009 Share Posted January 24, 2009 Is platinum used much more extensively in manufacturing then than gold? As a proportion of how much of it is available - yes Quote Link to comment Share on other sites More sharing options...
killerbee Posted January 24, 2009 Share Posted January 24, 2009 After all that's been posted on here about gold over the last 4 years I fail to understand why anyone who reads this forum doesn't now own physical gold and posters continually attempt to discredit gold as a store of wealth.Gold has performed positively for seven years and with the knowledge this forum has provided related to the current state of the UK and global economy why are there still so many gold bashers. Mods please leave for a reasonable time. Nobody likes being wrong let alone admit to it. I'd love RB to explain his gold predictions which were completely wrong. I don't understand the resistance to discussing gold on the main board especially as it is obviously outperforming everything else. The higher the gold value the higher resistance to buy any. The higher the gold value the more it is resented by those who do not possess any. When RB says buy I just might sell. Quote Link to comment Share on other sites More sharing options...
BXLONDONMAN Posted January 24, 2009 Share Posted January 24, 2009 I think it's more that:WE GET IT ALREADY! GOLD IS GOOD. LET'S TALK ABOUT HOUSES! HEAR,HEAR !!!!! Quote Link to comment Share on other sites More sharing options...
stormymonday_2011 Posted January 24, 2009 Share Posted January 24, 2009 Because most people on here do not want to own piles of gold. They would just like to be able to buy a home valued at sensible income multiples (i.e not nor than 3x average earnings) Quote Link to comment Share on other sites More sharing options...
pepsi Posted January 24, 2009 Share Posted January 24, 2009 Gold is a popularist store of wealth with little material use. I far prefer Platinum and copper, industrially essential materials and currently at massive historic lows.The problem I have with gold is the fact it is undoubtedly in a bubble of its own at the mo. Just look at previous gold booms to see what happens to the price next after spikes. I would much prefer to invest in platinum at the mo, as production is being scaled back and when demand picks up, its going to go through the roof. THe only issue I have is it is traded in USD. could be a problem if it turns out that Obama cant find enough money for all the T-bills he will need to fix their economy. Could be a bit of an issue if we see strenghtening gbp vs USD Like you I've always wondered what it is about "Gold". Are we talking about investing in Gold as a commodity or as some form of currency? What good is having gold going to do me? I can't eat it, live in it, use it to get around. What is its intrinsic value? Quote Link to comment Share on other sites More sharing options...
Selling up Posted January 24, 2009 Share Posted January 24, 2009 These days gold tends only to be mentioned in passing on this forum. This doesn't mean we're all bearish on gold - I am something of a minor goldbug myself, with 20% of my total assets in gold, an investment which has doubled in value over the last 2 years. I think the reason gold doesn't get much airtime here is historical: When I joined the forum in 2006, a substantial proportion of the forums threads seemed to be taken up with passionate argument between goldbugs and... whatever the opposite of a goldbug is. The moderators made a controversial policy decision to consider gold threads "off topic", which chased off a lot of the serious gold enthusiasts. So those who want to sing the praises of the shiny stuff are now doing so on other forums (fora?). Quote Link to comment Share on other sites More sharing options...
Authoritarian Posted January 24, 2009 Share Posted January 24, 2009 As a proportion of how much of it is available - yes Thanks. Some more info about platinum if anyone is interested from chards Quote Link to comment Share on other sites More sharing options...
Bardon Posted January 24, 2009 Share Posted January 24, 2009 Gold has performed positively for seven years and with the knowledge this forum has provided related to the current state of the UK and global economy why are there still so many gold bashers. Unless its bad news, unless its depressing, unless its deprived, unless its how inequitable the world is, unless you are preaching misery, unless its house prices are crashing, unless its how flawed the system is, unless its how bad broon is, unless its how bad the opposition is, unless its how greedy succesful investors are, unless its really bad, you will get bashed around here Quote Link to comment Share on other sites More sharing options...
MrB Posted January 24, 2009 Share Posted January 24, 2009 Because gold goes down in value as well as up (gold fell for 2 decades after 1980) Because people have been saying "buy gold before it's too late" (sound familiar?) Because there is monetary/credit deflation, most commodities are down 70% in $ terms. Becuase gold is near an all time nominal high, and a real terms high (adjusted for a realistic level of inflation and now deflation) Because people are paying 30% premium over spot rates on gold coins (delusional speculation) Because people are buying gold to "get rich" expecting prices to be $1000 / $2000 etc, whereas gold should be a really boring hedge vs inflation. Because hedge funds have made massive leveraged purchases on gold that could well unwind over the next year or 2 Because people who turned down gold at $400/$500/$600/$700 suddenly think it's a great buy at $900 Because people are justifying buying something that is really expensive, because it's really expensive! I'm actually neutral on gold, but there are plenty of reasons why it's not a 100% cert Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted January 24, 2009 Share Posted January 24, 2009 (edited) I'm a confirmed 'gold basher' from the position of having bought a reasonable amount of it (physical; krugs, pandas, sovs) from 2005-2007. What's the point, other than it's became a bit of a hobby that I can't afford/justify atm? If it falls to $600 per ounce I'm level but I'd buy a bit more 'cos I like it and my kids kinda dig Dad's madness This "if the whole world goes FUBAR gold will save your a55" mantra from the gold bugs is bo11ocks, how are you going to get out of it, sell it on e-bay? Lol It's not even a bubble, if you're in the US it's not appreciated for close on 2 years and it's our currency (GBP) that's failed, gold hasn't appreciated and TBH if it was going to shoot fro the moon (and let's not forget the zealots were predicting $3,000 per ounce by now) it would have done it already, the conditions could hardly have been better. As folk need real currency they'll sell their gold.... Edited January 24, 2009 by Converted Lurker Quote Link to comment Share on other sites More sharing options...
nixy Posted January 24, 2009 Share Posted January 24, 2009 I think it's more that:WE GET IT ALREADY! GOLD IS GOOD. LET'S TALK ABOUT HOUSES! What do you mean ?? .....houses?? eg kitchens central heating systems, decor etc?? or the perceived value of a house compared to the (real?) value of something else, like for instance, a precious metal ?? I understand the average house price now is around 235 ounces. Thinks..... is the price the gold & silver real or perceived?? Quote Link to comment Share on other sites More sharing options...
Ted Posted January 24, 2009 Share Posted January 24, 2009 Yes, I'm sure this will get moved soon enough. There was a thread on here before about fx trading. Did it get moved? nah. Quote Link to comment Share on other sites More sharing options...
nixy Posted January 24, 2009 Share Posted January 24, 2009 I'm a confirmed 'gold basher' from the position of having bought a reasonable amount of it (physical; krugs, pandas, sovs) from 2005-2007. What's the point, other than it's became a bit of a hobby that I can't afford/justify atm? If it falls to $600 per ounce I'm level but I'd buy a bit more 'cos I like it and my kids kinda dig Dad's madness This "if the whole world goes FUBAR gold will save your a55" mantra from the gold bugs is bo11ocks, how are you going to get out of it, sell it on e-bay? Lol It's not even a bubble, if you're in the US it's not appreciated for close on 2 years and it's our currency (GBP) that's failed, gold hasn't appreciated and TBH if it was going to shoot fro the moon (and let's not forget the zealots were predicting $3,000 per ounce by now) it would have done it already, the conditions could hardly have been better. As folk need real currency they'll sell their gold.... As folk need real currency they'll sell their gold.... What?..... ALL of it? Quote Link to comment Share on other sites More sharing options...
sharpe Posted January 24, 2009 Share Posted January 24, 2009 [*]Becuase gold is near an all time nominal high, and a real terms high (adjusted for a realistic level of inflation and now deflation) ????????????? For an inflation adjusted all time high, you would have to inflate $850 (or the exact nominal high in 1980) by 29 years of inflation - lets say that is 5% inflation a year (which is probably a bit low); an inflation adjusted all time high is =850*(1.05)^29 = $3500 so at $900 gold is no where near its all time high - a raging buy if you think the dollar crisis in 1980 might be repeated. the fact that in all human history all paper currencies have either gone back to the gold (or some other commodity) standard in a few decades or become worthless. we are now 38 years in paper. will either be back on the gold standard at a far higher rate than $900 or the dollar will be worthless - either way owning gold is a sensible thing to consider Quote Link to comment Share on other sites More sharing options...
Authoritarian Posted January 24, 2009 Share Posted January 24, 2009 [*]Because gold goes down in value as well as up (gold fell for 2 decades after 1980) The counter argument to this convinced me make my first investment of some gold coins earlier last year: even if the price of gold drops it's still performing it's job as an inflationary hedge. I still feel uneasy having a large part of my wealth stored as £ however as it's taking a hammering every which way getting out into other currencies/gold seems expensive. Quote Link to comment Share on other sites More sharing options...
Selling up Posted January 24, 2009 Share Posted January 24, 2009 [*]Becuase gold is near an all time nominal high, and a real terms high (adjusted for a realistic level of inflation and now deflation) I suppose it depends on what you consider a realistic level of inflation. Measured in GBP and adjusting for RPI, gold reached £1000/oz in 1980. It's now at £650/oz. (Gold reached $800 in 1980. Exhange rate was around 2.3 [this was an average for the whole of the year 1980, I couldn't find the figure for the day when gold hit $800], so £ price was £350. Cumulative RPI since then is 190%, so £350 in 1980 is equivalent to £1015 today.) Quote Link to comment Share on other sites More sharing options...
headmelter Posted January 24, 2009 Author Share Posted January 24, 2009 Why do you need to get the approval of others if you are sooooooooo sure you are doing the right thing? I did not ask for or seek approval I asked for reasons for the apparent continued negative perspective on gold. But I'm sure you are comfortable with your short position. Quote Link to comment Share on other sites More sharing options...
Nicholas Cage Posted January 24, 2009 Share Posted January 24, 2009 Gold is fine as a hedge which makes it worrying when it goes up in value, eventually if you swap it back for GBP you should be in about the same position as before. Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted January 24, 2009 Share Posted January 24, 2009 Gold is fine as a hedge which makes it worrying when it goes up in value, eventually if you swap it back for GBP you should be in about the same position as before. Doh! Summed up beautifully in one sentence. Quote Link to comment Share on other sites More sharing options...
Lander Posted January 24, 2009 Share Posted January 24, 2009 I'm a confirmed 'gold basher' from the position of having bought a reasonable amount of it (physical; krugs, pandas, sovs) from 2005-2007. What's the point, other than it's became a bit of a hobby that I can't afford/justify atm? If it falls to $600 per ounce I'm level but I'd buy a bit more 'cos I like it and my kids kinda dig Dad's madness This "if the whole world goes FUBAR gold will save your a55" mantra from the gold bugs is bo11ocks, how are you going to get out of it, sell it on e-bay? Lol It's not even a bubble, if you're in the US it's not appreciated for close on 2 years and it's our currency (GBP) that's failed, gold hasn't appreciated and TBH if it was going to shoot fro the moon (and let's not forget the zealots were predicting $3,000 per ounce by now) it would have done it already, the conditions could hardly have been better. As folk need real currency they'll sell their gold.... Wait until the word 'recession' is changed to 'depression' in the media Quote Link to comment Share on other sites More sharing options...
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