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Gold Seen As Hedge Against Both Inflation And Deflation

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http://uk.finance.yahoo.com/news/analysis-to-beat-inflation-or-deflation-investors-seek-gold-reuters_molt-2bc42f8336ac.html?x=0

Analysis -
To beat inflation or deflation, investors seek g
old
Amanda "Mandy" Cooper, 15:40, Thursday 16 September 2010
LONDON (Reuters) - Fear of inflation has always been one of the prime reasons for investing in gold, yet in an era of nail-biting uncertainty, investors are buying the shiny stuff to ward against price swings in either direction.

It looks like Gold has now entered a new paradigm where it makes sense to buy all you can as it will rise whether we have inflation or deflation. An all scenario sure thing.

The frenzy is going to leave some buyers dissappointed unless they get in quick as every other investment is due to crash:

http://finance.yahoo.com/news/Gold-Rises-to-Record-on-bloomberg-2632723508.html?x=0&sec=topStories&pos=3&asset=&ccode=

“People are worried about the European financial system and debt market, and the outlook for the U.S. and global economy,” said Mark O’Byrne, executive director of brokerage GoldCore Ltd. in Dublin. “People are worried about equities, debt, property” and currencies, he said.
Gold, up 16 percent this year, is heading for its
10th consecutive annual gain
, the longest winning streak since at least 1920. Bullion has outperformed global equities, Treasuries and most industrial metals, prompting record investments in gold-backed ETPs. The metal reached all-time highs in euros, sterling and Swiss francs in June.

If you cannot lose why not buy? You know it makes sense. ;)

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So you're not buying in then I take it, RB?

When its a new paradigm its time to worry.

Warren Buffett would say that its a sell when the herd are buying. There are more gold articles on the "wires" in the last few days than at any other time in history. With articles now saying you cannot lose whatever happens it is beginning to sound like Krusty and the sure fire bet of bricks and mortar.

I am remaining in cash waiting for a cheap house to buy then I am not going to worry about investing.

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When its a new paradigm its time to worry.

Warren Buffett would say that its a sell when the herd are buying. There are more gold articles on the "wires" in the last few days than at any other time in history. With articles now saying you cannot lose whatever happens it is beginning to sound like Krusty and the sure fire bet of bricks and mortar.

I am remaining in cash waiting for a cheap house to buy then I am not going to worry about investing.

Spot on you tell them, youve just got too much foresight thats why youve been about 5 years ahead of the curve

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When its a new paradigm its time to worry.

Warren Buffett would say that its a sell when the herd are buying. There are more gold articles on the "wires" in the last few days than at any other time in history. With articles now saying you cannot lose whatever happens it is beginning to sound like Krusty and the sure fire bet of bricks and mortar.

I am remaining in cash waiting for a cheap house to buy then I am not going to worry about investing.

Years ago i posted this if you want to win against inflation or deflation you buy gold, i did publish some of my research with historical documents, this isnt news to me. i went back 200 years using recorded information and my end result was but gold in both flations.

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When its a new paradigm its time to worry.

Warren Buffett would say that its a sell when the herd are buying. There are more gold articles on the "wires" in the last few days than at any other time in history. With articles now saying you cannot lose whatever happens it is beginning to sound like Krusty and the sure fire bet of bricks and mortar.

I am remaining in cash waiting for a cheap house to buy then I am not going to worry about investing.

The problem is how long are you going to wait? as the gold rush could last a good few years.

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My take is that gold jumps to a new baseline whenever the Europeans get worried about their currencies/sovereign position.

The Europeans seem to have a more switched on attitude when it comes to the value of gold ownership than the Americans, even though the Americans owned more gold per capita than any nation in history in the early 1900's.

India/China are also underpinning the price, but it is Euro-stress, in my opinion, that's driving it at the moment...

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Gold protects against debasement, as you can't print gold.

Physical gold also protects against bank failure (no counter party risk).

TBH, I'm not sure what is so hard to understand, really! :huh:

There may be better investments in either scenario, but it's surely pretty good for hedge sitters.

Edited by Traktion

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When its a new paradigm its time to worry.

Warren Buffett would say that its a sell when the herd are buying. There are more gold articles on the "wires" in the last few days than at any other time in history. With articles now saying you cannot lose whatever happens it is beginning to sound like Krusty and the sure fire bet of bricks and mortar.

I am remaining in cash waiting for a cheap house to buy then I am not going to worry about investing.

Well yes. It's simply crazy to use this language in respect of any investemnt.

My own view is that provided you believe you can have enforeable rights in perpetuity land is the only really safe bet.

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Yawn. Another of these pointless threads. Doubtless RB will still be starting them when gold hits $2000, then $5000 etc etc.

I've said it before, gold is the best thing to hold in both deflation and inflation. As insurance.

This is payoff time! It is also, sadly, time for the paper money fan club to meet the gold punisher, and the question is: Are You Prepared?*

- Stewart Thomson http://www.321gold.com/editorials/thomson_s/thomson_s_091410.html

Edited by Errol

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A house is a house.

A bar of gold is a bar a gold.

A loaf of bread is a loaf of bread.

A stack of paper notes, or digital entries on a computer, is just that. What would you trust your savings in?

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I think I will buy on a CFD maybe 200 ounces of Gold.

That's an investment of £160k with an outlay of only 1% of that - £1600.

If prices keep going up by say 20% a year - I'll get a nice profit of about £30k in the first year alone! :)

All I have to do is sell at the peak and I'll be rich!

Edited by maxdiver

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I think I will buy on a CFD maybe 200 ounces of Gold.

That's an investment of £160k with an outlay of only 1% of that - £1600.

If prices keep going up by say 20% a year - I'll get a nice profit of about £30k in the first year alone! :)

All I have to do is sell at the peak and I'll be rich!

Tiny stop so you get wiped out the next day, interest charges overnight, currency conversion charges unless you hedge it and tax on the profits unless you earn a loads of money already.

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Tiny stop so you get wiped out the next day, interest charges overnight, currency conversion charges unless you hedge it and tax on the profits unless you earn a loads of money already.

I'll be careful to buy in a slight dip before prices rise again.

I have been told this is easy to predict in a seminar I paid only £99 to go to - (it normally costs £999).

Edited by maxdiver

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http://uk.finance.yahoo.com/news/analysis-to-beat-inflation-or-deflation-investors-seek-gold-reuters_molt-2bc42f8336ac.html?x=0

Analysis -
To beat inflation or deflation, investors seek g
old
Amanda "Mandy" Cooper, 15:40, Thursday 16 September 2010
LONDON (Reuters) - Fear of inflation has always been one of the prime reasons for investing in gold, yet in an era of nail-biting uncertainty, investors are buying the shiny stuff to ward against price swings in either direction.

It looks like Gold has now entered a new paradigm where it makes sense to buy all you can as it will rise whether we have inflation or deflation. An all scenario sure thing.

The frenzy is going to leave some buyers dissappointed unless they get in quick as every other investment is due to crash:

http://finance.yahoo.com/news/Gold-Rises-to-Record-on-bloomberg-2632723508.html?x=0&sec=topStories&pos=3&asset=&ccode=

“People are worried about the European financial system and debt market, and the outlook for the U.S. and global economy,” said Mark O’Byrne, executive director of brokerage GoldCore Ltd. in Dublin. “People are worried about equities, debt, property” and currencies, he said.
Gold, up 16 percent this year, is heading for its
10th consecutive annual gain
, the longest winning streak since at least 1920. Bullion has outperformed global equities, Treasuries and most industrial metals, prompting record investments in gold-backed ETPs. The metal reached all-time highs in euros, sterling and Swiss francs in June.

If you cannot lose why not buy? You know it makes sense. ;)

This is widely accepted RB by those that have done due diligence on gold. It isnt about making money or investing but about protection and is a long term policy. If I find a home to buy and can cash in metal for more sterling than it cost then thats great, and like you I will be content and worry free, swapping one asset for another seems fine imo.

If metal prices are no good when houses are at their lowest and I want to purchase ( which I fear may be a distinct possibility) then the metal will remain a longterm (as in pension) hold as it should be.

Did you see soros talking about gold being the ultimate bubble again? Thats the soros and prechter indicators tripped now, time to go long like never before, lol.

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Those STR currency funds will continue to get crushed.

Gold and Silver on the other hand...

Machiavellian or just plain anti Gold obsessed (to be polite)?

Have you been talking down Gold all these years so you can keep buying it on the cheap RB? :lol:

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When its a new paradigm its time to worry.

Warren Buffett would say that its a sell when the herd are buying. There are more gold articles on the "wires" in the last few days than at any other time in history. With articles now saying you cannot lose whatever happens it is beginning to sound like Krusty and the sure fire bet of bricks and mortar.

I am remaining in cash waiting for a cheap house to buy then I am not going to worry about investing.

Warren Buffett would say that its a sell when the herd are buying.

yes, and when did the herd start 'investing' in houses??.......... 2003?

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Shouldn’t gold be considered simply as a 'store of wealth' during times of negative real interest rates? This is my view on gold. And we do live in an era of negative real interest rates.

I’ve done some analysis, following on from work of others, and it suggests that the USD price of gold since 1970 tends to go up in months when real interest rates are in negative or weak positive territory. A real return on money, on the other hand, will lead to no return in gold price.

That suggests to me that gold may continue to go up until government/central bank policy changes with respect to interest rates.

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HPC.co.uk is about house prices, and many here debate the benefits of keeping a house deposit/purchase funds in gold. To my (admittedly, slightly, gold bugged) eyes, it makes total sense to have your savings (or some at least) in gold as the UK house price-to-gold ratio looks likely to fall further, getting close now to that lower Bollinger band which it likes to hug on moves down.

capture111.png

Edited by Diet Cola Addict

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  • 153 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% +
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      • Even
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