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jpidding

Gold Stocks Not Such A Good Bet...

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Gold production in South Africa last year was at a 82 year low. Aparently yields from mines are getting harder to extract. Many mines going out of business.

Is it going to be a similar thing with oil companies? Costs of extraction rise, plus hurricanes take out the platforms (very expensive).

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Tricky one isn't it. I've taken profits on my mining funds for now, kept a few individual favourties like Xstrata, Billiton, Kaz, but for the coal, copper, tin, lead that they mine rather than the gold.

Gold seems to have hit a resistance point, and Indian imports halved last year, which is a worry. The jewelry buying seems to stop at around $560, and much of the recent buying has been the Japs, whose 0% rates might end soon and that would remove alot of support for Gold.

Thing about Gold is that it's by and large not much use for anything other than as an ancient form of money. Iv'e kept my physical gold ( 5% of my assets ) but that's just in case Gordon Brown freezes all of out accounts or decides that no money can leave the country.

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Guest boredwaiting

but that's just in case Gordon Brown freezes all of out accounts or decides that no money can leave the country.

Do you think that is realistic? Could Gordon Brown ever do that? I would imagine the country would collapse completely on that move. How would we trade?

But it does sound that Gold has reached a peak.... I have been wondering what would push it to $600. As i see it gold really isn't that valuable - we just put a lot of value on it. If all the gold on the planet disappeared tomorrow - apart from the loss of wealth, there would be no impact on industry or personal well being...

The governments would be screwed though.

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Do you think that is realistic? Could Gordon Brown ever do that? I would imagine the country would collapse completely on that move. How would we trade?

But it does sound that Gold has reached a peak.... I have been wondering what would push it to $600. As i see it gold really isn't that valuable - we just put a lot of value on it. If all the gold on the planet disappeared tomorrow - apart from the loss of wealth, there would be no impact on industry or personal well being...

The governments would be screwed though.

No I don't think even he could or would do that, much as he'd like too. ;)

Must agree I think that Gold has had a great run, I got in at $410 on average and the $150 up has been nice, as has the 40% increase in the Merrils Gold and General fund since I bought in ( it was already up about 60% then ).

Right now I can see more downside than upside potential. Still might be wrong.

I do like Silver though. And copper, zinc, tin, lead.

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so what happens to the price of gold then?

I think that the price of physical will continue to rise. Any restriction to supply will help the price. From research I've done, even if gold went above 750 US (the point where mines would come back into profit), it would take years before investment in new mines would add to the supply. The industry has suffered a chronic level of underinvestment due to the surpression of the gold price.

Also bear in mind that as crude oil and hence energy prices rise it will become increasingly more expensive to mine.

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No I don't think even he could or would do that, much as he'd like too. ;)

Must agree I think that Gold has had a great run, I got in at $410 on average and the $150 up has been nice, as has the 40% increase in the Merrils Gold and General fund since I bought in ( it was already up about 60% then ).

Right now I can see more downside than upside potential. Still might be wrong.

I do like Silver though. And copper, zinc, tin, lead.

I couldn't disagree more. Yes gold has had a good run, but the public has hardly become aware of it.

Remember, the US economy is terminally ill. It can no longer service its debt or balance its trade/budget deficits without getting into more debt. It is a similar situation in the UK, but now quite as bad.

The US must keep issuing bonds in exchange for goods. The fed must buy back these bonds with paper money. As the debt gets worse IRs will have to rise to keep the appetite for debt alive. More debt will have to be redeemed with yet more paper money. The result of all of this is a flood of money into the system. As inflation runs away a meltdown will occur with real assest spiralling in nominal value.

Why do you think the fed will stop publishing M3? they want to keep the party going as long as possible.

Why do you think that Gordon keeps moving the goalposts on borrowing? He wants the keys to number 10. He only needs a bit more time.

The longer it goes on the worse the final unwinding will be.

I'm sure that our governments will try to hyperinflate their way out of their debts.

Remember the inflation adjusted gold peak in 1980 was around 1800 USD in todays money.

The bull run has only just begun, but thats not to say we wont see a pullback or two along the way.

James.

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I couldn't disagree more. Yes gold has had a good run, but the public has hardly become aware of it.

Remember, the US economy is terminally ill. It can no longer service its debt or balance its trade/budget deficits without getting into more debt. It is a similar situation in the UK, but now quite as bad.

The US must keep issuing bonds in exchange for goods. The fed must buy back these bonds with paper money. As the debt gets worse IRs will have to rise to keep the appetite for debt alive. More debt will have to be redeemed with yet more paper money. The result of all of this is a flood of money into the system. As inflation runs away a meltdown will occur with real assest spiralling in nominal value.

Why do you think the fed will stop publishing M3? they want to keep the party going as long as possible.

Why do you think that Gordon keeps moving the goalposts on borrowing? He wants the keys to number 10. He only needs a bit more time.

The longer it goes on the worse the final unwinding will be.

I'm sure that our governments will try to hyperinflate their way out of their debts.

Remember the inflation adjusted gold peak in 1980 was around 1800 USD in todays money.

The bull run has only just begun, but thats not to say we wont see a pullback or two along the way.

James.

quite so.the US still has a rather large defecit,which will be exacerbated further with any more military action.......in order for the US to remain a good investment climate,then there needs to be sufficient demand for US goods......GM and co are hardly providing that,even financial services look shaky now,and the consumer wil re-trench(this might not be as bad as everyone fears but if military action goes badly,overseas demand could easily dry up,and customers look for alternatives)

...this sort of scenario would cause the dollar to tank,and a scramble out of bonds and currency....the result,hyperinflation in the US.

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  • 302 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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