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dunroamin

A Golden Thread

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theres been loads more chat about gold in the main threads lately and not just in the investment bit. just wondering how many people have actually gone and bought some?

i've seen a few threads lately about HPC lot all being of the same way of thinking (mostly!), and even though i generally post a load of inane rubbish - have actually become a bit of a HPC disciple (apart from monday when i took off my frugal hpc hat and bought a new bike :) )

anyways ... just interested if this site has influenced such a purchase??

Edited by dunroamin

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its a poll btw so you can keep your secret stash a secret  ;)

Done Rome In dont expect myself nor Mr Dead to reply as we were both totally insulted to be called a couple of hairy pies, and anyway we know nothing about commodities. :P

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Done Rome In dont expect myself nor Mr Dead to reply as we were both totally insulted to be called a couple of hairy pies, and anyway we know nothing about commodities.  :P

oh shush now - i already said sorry. make friends?? *holds up little finger*

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Guest muttley

I've got a few shares in Oxus gold,but held them long before I discovered this site.Bit of a dog,but mainly for political reasons.(They're based in Uzbekistan).

I'm not convinced by the many Goldbugs here.Mainly because I don't subscribe to the economic meltdown theories.( Not just yet ).

Besides,gold has already seen a massive increase over the last three years.

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oh shush now - i already said sorry. make friends?? *holds up little finger*

I really need to confer with the great mind of Mr Dead before we can decide if we accept your sincere apology. You know what he's like at this time of night after all those involuntary injected drugs so dont keep your hope up for our experienced commodities knowledge being applied to your vote. :lol:

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I've got a few shares in Oxus gold,but held them long before I discovered this site.Bit of a dog,but mainly for political reasons.(They're based in Uzbekistan).

I'm not convinced by the many Goldbugs here.Mainly because I don't subscribe to the economic meltdown theories.( Not just yet ).

Besides,gold has already seen a massive increase over the last three years.

I hold a similar view. Gold is a strange commodity. IMO it'll only get interesting if inflation starts GALLOPING towards 20% or so. The problem is... it has no fundamental utility. Unlike oil or copper or coal, you can't really do much with gold, so the fundamentals of demand/supply are really only driven by its value as an inflationary hedge.

IMO, there are better and more worthwhile commodities to invest in as agressive investments, but of course the trick is to get in there before the main price rises start.

Gasoline prices are through the roof, btw.

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The problem is... it has no fundamental utility.

Thats not the problem. Thats exactly the reason to hold gold. It has two uses that overwhelm all other uses. First, Its a scarce decorative trinket that has always been covetted by man and second, it is free market money used as a placeholder for present goods. In the second role it competes with the USD (and to a lesser extent other fiats).

because it has intrinsic value as a trinket it can never lose all value and can never not be scarce (unlike USD).

Over long periods of time (multidecades) it is guaranteed to rise in value proportionate to the increase in quantity to USD.

Over shorter periods (2 decades or less) its value against the dollar is an almost pure measure of (lack of ) confidence. This is because to hold USD balances you must be confident that something with no value will store value.

Thus the time to hold gold is when confidence is high but falling and the time not to hold is when confidence is low but rising (1980 through 2000).

Thus as more and more asset classes disappoint (first equities, now property, next Energy?) more and more folk will want to hold gold. They can do so without messing up other peoples lives precisely because gold is not useful other than as a decorative trinket. When people try to hold houses as money the whole economy gets messed up cos those that just need a place to live cannot afford it. When people try to hold oil as money the whole economy gets wrecked (for obvious reasons). This process of self reinforcing disappointment must lead eventually to gold because its the only thing you can hold during a period of falling confidence where the act of holding does not mess up everthing else.

Complex - but at the same time simple.

BAB

Edited by BayAreaBear

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Gold has serious utilty value in addition to its use in jewelry.

Gold's superior electrical conductivity, its malleability, and its resistance to corrosion have made it vital to the manufacture of components used in a wide range of electronic products and equipment, including computers, telephones, cellular phones, and home appliances.

Gold has extraordinarily high reflective powers that are relied upon in the shielding that protects spacecrafts and satellites from solar radiation and in industrial and medical lasers that use gold-coated reflectors to focus light energy. And because gold is biologically inactive, it has become a vital tool for medical research and is even used in the direct treatment of arthritis and other intractable diseases.

It is arguably one of the most useful metals in addition to its reputation as the prime quality asset.

Edited by Red Baron

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Gold has serious utilty value in addition to its use in jewelry.

Sure its has some uses. But none that cannot be replicated using other materials and none that even begin to equate to its decorative use or use as money. This is why virtually all the gold ever mined is in existence somewhere in the ownership of someone.

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From 'New uses for gold'

'There is a great deal of innovative research into gold science and technology currently being undertaken in universities and industrial research laboratories around the world. Gold catalysis is a major new emerging science, and the first international conference was held on this subject 2 years ago under the title "Catalytic Gold" in Cape Town. There are also exciting developments in gold chemistry, nanotechnology and materials, which offer unique opportunities for new products and processes using gold.

As a result, there is a need to ensure that this new emerging science is brought to the attention of industry in order to encourage its commercial exploitation to the benefit of mankind. That was one of the principal aims of the GOLD 2003 : New Industrial Applications for Gold conference which took place in Vancouver, Canada between the 28th September and 1st October 2003.

The Conference Organising Committee were greatly encouraged by the participation of both researchers and industrialists at the event. Four parallel sessions were run at the conference and over 150 high quality papers and posters were presented and discussed.

This confirmed that the gold R & D community needs a dedicated forum to discuss the latest advances in gold science and technology and it is anticipated that significant progress in many of the technologies discussed in Vancouver will be revealed at the next conference anticipated to take place somewhere in Europe during 2006. Gold may be the oldest metal known and utilised by man, but it is also most definitely a 21st century metal, suited to modern technological needs!'

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Sure its has some uses.  But none that cannot be replicated using other materials and none that even begin to equate to its decorative use or use as money.  This is why virtually all the gold ever mined is in existence somewhere in the ownership of someone.

Funny, i was discussing gold this evening with someone. The only reasons I could think of for its intrinsic value were as outlined here - decorative appeal and technological applications.

Historically, decorative appeal has been THE most important reason (i.e. over the past few thousand years gold has been valuable, but technology was somewhat thin on the ground).

This leads me to doubt gold's intrinsic value. When the shit hits the fan, I don't think too many people will be concerned about decorative value. Food, water, shelter, clothing, pharmaceuticals are much more useful. Spectacles are much more useful.

Gold is just another "faith" currency, like paper money. It is only valuable as long as we believe it is valuable.

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Of course.  One that can't be made by printing.

But it is heavily in the subconscious (gold standard, gold medals, Brown's golden rule, Halifax liquid gold, a golden age, he's hit gold, that moment was pure gold, etc. ad nauseaum), and I'd like a pouch of it along with my axe, woman, shotgun, oil and land more than I'd like a handful of Roman, I mean US banknotes.

In the words of Spandau Ballet "Gold, always believe"

No thanks. I think I'l invest in a Ray Mears "how to survive in the wilderness" book.

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Well I'd like the survival book as well.

All I know is that, until recently, gold was the free market choice of currency within and between all nations, and has arisen spontaneously again and again throughout history, probably because it is in such short supply (so a small weight of it is worth a lot) and none of your untrustworthy counterparts can make it or fake it, so it can't be inflated away.

All government monies began as a promise to pay gold, and the experiment of ending that convertibility is only about 40 years old (since time in the US they've had 11x inflation, while in the preceeding century, there was effectively none).

So it's a very effective "faith money" that doesn't rely too much on faith.

And going forward into the future, gold will be in the same supply ratio throughout the Universe.  Would you prefer, on your first interstellar trade deal, a trillion tonnes of gold from ET in exchange for your movie rights, or 1 trillion Alpha Centauri Yamadollars (all encoded on one small plastic card)?  (Assuming that 1 tonne of gold costs 1 Yamadollar of course.)

Go long the Yamadollars. Earth economy is screwed, so it's worth a punt.

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You could be right.  I certainly wouldn't want to be on the receiving end of the trillion tonnes of gold if they decided to launch it at relativistic speeds towards my home postcode, assuming I'd naturally have the facilities to receive it. :D

I'll take the tons of gold, thanks. No matter what speed. I'll build the facilities if needed.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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