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Lepista

Was Gold Over Priced In 1980..?

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So, We all know what happened in early 1980's... the price of gold shot through the roof, very rapidly, perhaps becaoiuse people feared inflationary colllapse.

But here's the question... was it really oversold? was the price at its peak really just purely driven by greedy investors thinking that the historic rise would vener end?

Or was it, deep down, a reflection on the true price of gold, with the price crashing due to the hand of unforseen forces?

Just asking ;)

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Ive always wondered how the currency of kings for thousands of years has become so cheap everyone can own some, does make me nervous about the illusion of paper, everyone i talk to seems to think all money is backed by the shiny shiny. and are a bit taken back when i show them fiat money on wiki

although i cant afford it anyway, its silver for Glabkrar. and in my hand of course, mabee im a little paranoid but if TS does HTF and were all using notes for fires then id like to own somthing people want

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Well, the rise to 1980 looked pretty 'parabolic', as they say, and posted an eightfold rise from 100 to 800. This time it seems to be going up more slowly, and isnt near 8 times it c300 y2k low (ie would have to get to 2400 or so)

http://3.bp.blogspot.com/_IZ7QlUCd1P8/Sr0sV-6ot2I/AAAAAAAABSE/R_XN3cQBq8A/s400/Gold-price-history.png

However, last time govt funds were tapped out in the mid/late 70s, the private sector took over in the 1980s thanks to deregulation.

This time the private sector is tapped out too, so printy-printy-to-infinity.

I dont know how you would offload gold once youre over your CGT allowance. Do HMRC track your ebay dealings?! :blink:

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I dont know how you would offload gold once youre over your CGT allowance. Do HMRC track your ebay dealings?! :blink:

Buy Sovs of Britanias no CGT applicable.

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Buy Sovs of Britanias no CGT applicable.

Yeah, I mostly buy sovs.

Hopefully some bright spark won't change this CGT rule at some point.

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This time it is different, says the man who holds gold and silver;

This time it is different says the man who owns a house;

"You could do with a hair cut Sir", says the hairdresser;

Relevance to HPC? Of course it is completely relevant says the men who slowly but surely destroy this site by bombarding it irrelevant PM posts on a daily basis.

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This time it is different, says the man who holds gold and silver;

This time it is different says the man who owns a house;

"You could do with a hair cut Sir", says the hairdresser;

Relevance to HPC? Of course it is completely relevant says the men who slowly but surely destroy this site by bombarding it irrelevant PM posts on a daily basis.

Except that we can say this, we can back up our assertions that it is different this time by strikingly obvious evidence which is rather difficult to discredit unlike the HPI arguement (HPI was small island, got to buy somewhere to live, lax bank lending, growing population etc)

PMs

I.e.

Interest rates can't go up as it'll cause a mass default

Printing is not going to stop EVER

Debt problems are being resolved with more debt.

All of the above = more inflation

China/India are hoovering up gold, their 1000 tons of gold official figure is way off the mark as they aren't as a stupid as gordon brown i.e. telling the world their intentions. Between 2006 and 2009 their reserves jumped 300 tons in one go rather than incrementally.

But as said a lot of us keep it for insurance purposes.

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This time it is different, says the man who holds gold and silver;

This time it is different says the man who owns a house;

"You could do with a hair cut Sir", says the hairdresser;

Relevance to HPC? Of course it is completely relevant says the men who slowly but surely destroy this site by bombarding it irrelevant PM posts on a daily basis.

What are you talking about?

Posting a pm question in the pm section of the forum is hardly "bombarding it irrelevant PM posts " (sic).

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So, We all know what happened in early 1980's... the price of gold shot through the roof, very rapidly, perhaps becaoiuse people feared inflationary colllapse.

But here's the question... was it really oversold? was the price at its peak really just purely driven by greedy investors thinking that the historic rise would vener end?

Or was it, deep down, a reflection on the true price of gold, with the price crashing due to the hand of unforseen forces?

Just asking ;)

Yes unforseen forces caused it to crash....

They wanted a world where monetary stability was stable... there was only one way to do this & allow everyone to bebefit for 30+ years... a deal was struck.

see my thread Watch In Absolute Wonder As The Demand For Oil Plunges & It's Price Goes Thru The Roof

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Ive always wondered how the currency of kings for thousands of years has become so cheap everyone can own some, does make me nervous about the illusion of paper, everyone i talk to seems to think all money is backed by the shiny shiny. and are a bit taken back when i show them fiat money on wiki

although i cant afford it anyway, its silver for Glabkrar. and in my hand of course, mabee im a little paranoid but if TS does HTF and were all using notes for fires then id like to own somthing people want

A deal was done in the 70's that allowed (so called) 30 + years of economic stability.

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...........But here's the question... was it really oversold?.........

No, it was not oversold.

It went high for a couple of days, this was the price that the bullion houses sold to each other.

The reports of queues around the block to buy, were in reality queues of people who were selling, not buying.

'We want your gold', is nothing new.

What few seem to grasp, is that the QE of the day worked.

Printy printy goes to the moon, and gold gets floored. Boom follows.

Printy printy, i.e., QE1980, worked.

Now it is the opposite , it's the bust.

QE from 1980-2008 went up eight fold, since then it has merely tripled. Food for thought, or what.

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  • 284 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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