Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1201  
Old 14.01.2020, 00:14
Forum Legend
 
Join Date: Apr 2008
Location: Zurich
Posts: 4,236
Groaned at 94 Times in 70 Posts
Thanked 4,612 Times in 2,482 Posts
rainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond repute
Re: Gold Buying

Quote:
View Post
When it goes out of fashion as it did after it's peak of around $800 in 1980, it then lost more than 75% of it's value in real terms, it's never recovered in real terms since.
OK, but is a similar devaluation conceivable, today?

And if it's such a bad investment, why are central banks buying up gold?

Last edited by rainer_d; 14.01.2020 at 00:25.
Reply With Quote
  #1202  
Old 14.01.2020, 01:28
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,365
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Gold Buying

Quote:
View Post
OK, but is a similar devaluation conceivable, today?

And if it's such a bad investment, why are central banks buying up gold?
Sure, it's down to demand.

Central Banks don't have a clue, they were mostly heavy sellers around $300.
Unless there is going to be high inflation then Gold is not going to be a good investment, long term interest rates tell you that inflation is unlikely.

Gold is still well below it's peak price in late 2011 in USD & CHF
Reply With Quote
  #1203  
Old 14.01.2020, 10:29
Forum Legend
 
Join Date: Apr 2008
Location: Zurich
Posts: 4,236
Groaned at 94 Times in 70 Posts
Thanked 4,612 Times in 2,482 Posts
rainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond repute
Re: Gold Buying

The question is also if there is still a correlation between inflation and interest rates.


Would central banks actually raise interest rates if there was significant inflation? Could they, without risking to bankrupt their country?
Or the EU in case of the ECB?
Reply With Quote
  #1204  
Old 14.01.2020, 10:33
k_and_e
 
Posts: n/a
Re: Gold Buying

Quote:
View Post
Would central banks actually raise interest rates if there was significant inflation? Could they, without risking to bankrupt their country?
Or the EU in case of the ECB?
I don't know, but I'd rather invest in money printers than in gold
Reply With Quote
The following 2 users would like to thank for this useful post:
  #1205  
Old 14.01.2020, 11:56
Forum Legend
 
Join Date: Apr 2008
Location: Zurich
Posts: 4,236
Groaned at 94 Times in 70 Posts
Thanked 4,612 Times in 2,482 Posts
rainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond repute
Re: Gold Buying

I don't think we'll ever see the kind of money-printing we know from the history-books (Weimar-style) or from recent history (Zimbabwe) with any Western country.
Reply With Quote
  #1206  
Old 14.01.2020, 14:44
Forum Veteran
 
Join Date: Aug 2011
Location: Bern
Posts: 665
Groaned at 19 Times in 12 Posts
Thanked 464 Times in 294 Posts
spalebärg has a reputation beyond reputespalebärg has a reputation beyond reputespalebärg has a reputation beyond reputespalebärg has a reputation beyond repute
Re: Gold Buying

Quote:
View Post
I don't think we'll ever see the kind of money-printing we know from the history-books (Weimar-style) or from recent history (Zimbabwe) with any Western country.
Oh man! Exactly then when statements like this are made is when the chances of it happening are greatest.
Reply With Quote
This user would like to thank spalebärg for this useful post:
  #1207  
Old 14.01.2020, 16:04
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Baselland
Posts: 15,883
Groaned at 312 Times in 210 Posts
Thanked 20,391 Times in 8,575 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Gold Buying

Quote:
View Post
I don't think we'll ever see the kind of money-printing we know from the history-books (Weimar-style) or from recent history (Zimbabwe) with any Western country.
why not? we already have QE maybe the next thing they will try is helicopter money?

maybe print money and UBI it, or forgive student loans, give tax breaks or free medical insurance.

inequality is increasing. populism is increasing. surely only a matter of time before a politician responds to this?
Reply With Quote
This user would like to thank Phil_MCR for this useful post:
  #1208  
Old 22.02.2020, 11:36
Junior Member
 
Join Date: May 2009
Location: Zurich
Posts: 86
Groaned at 5 Times in 4 Posts
Thanked 105 Times in 52 Posts
henk has earned some respecthenk has earned some respect
Re: Gold Buying

1646 per OZ
Reply With Quote
  #1209  
Old 22.02.2020, 17:36
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,365
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Gold Buying

Quote:
View Post
1646 per OZ
It was higher in both 2011 & 2013 in CHF & 2013 in USD thats hardly what I call a good investment v something like Fundsmith.
Reply With Quote
  #1210  
Old 22.02.2020, 22:12
Banned
 
Join Date: Nov 2019
Location: Lake Zurich
Posts: 94
Groaned at 70 Times in 36 Posts
Thanked 42 Times in 28 Posts
redbanner is considered unworthyredbanner is considered unworthyredbanner is considered unworthyredbanner is considered unworthy
Re: Gold Buying

Quote:
View Post
Well, you'll probably have about Chf 150k give or take a bit in 10 years time
Doing fine so far smart ass
Reply With Quote
  #1211  
Old 13.03.2020, 00:10
Forum Legend
 
Join Date: Apr 2008
Location: Zurich
Posts: 4,236
Groaned at 94 Times in 70 Posts
Thanked 4,612 Times in 2,482 Posts
rainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond reputerainer_d has a reputation beyond repute
Re: Gold Buying

It's interesting that in this market, everything is going down, even gold.

Does that make sense?

It's perhaps again a question of "Is it still a market"?
Reply With Quote
  #1212  
Old 13.03.2020, 00:51
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,365
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Gold Buying

Quote:
View Post
It's interesting that in this market, everything is going down, even gold.

Does that make sense?

It's perhaps again a question of "Is it still a market"?
Sure, you can't eat gold, if 100 million Old people die then there will be a lot less buyers of gold, probably lots of sellers.

Cash at times is King, gold is just a speculative investment with it's price based on sentiment & nothing else.

Looking back in history gold lost 13% in 1 day Jan 21 1980, 10% on 24 August 2011 & 14% over 2 days in Feb 1983.
Reply With Quote
  #1213  
Old 16.04.2020, 22:41
Junior Member
 
Join Date: May 2009
Location: Zurich
Posts: 86
Groaned at 5 Times in 4 Posts
Thanked 105 Times in 52 Posts
henk has earned some respecthenk has earned some respect
Re: Gold Buying

gold also went down right after the 2008 crisis as holders had to sell it to cover losses and create lquidity
Reply With Quote
  #1214  
Old 16.04.2020, 22:52
Senior Member
 
Join Date: Jul 2016
Location: GR
Posts: 463
Groaned at 21 Times in 17 Posts
Thanked 150 Times in 128 Posts
wantone has no particular reputation at present
Re: Gold Buying

Quote:
View Post
It's interesting that in this market, everything is going down, even gold.

Does that make sense?

It's perhaps again a question of "Is it still a market"?
the explanation I hear is that many holders of gold had other investments in stocks and bonds for example that hit margin calls and therefore they had to sell some gold to cover the margin calls.
Reply With Quote
  #1215  
Old 16.04.2020, 23:06
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Baselland
Posts: 15,883
Groaned at 312 Times in 210 Posts
Thanked 20,391 Times in 8,575 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Gold Buying

Quote:
View Post
why not? we already have QE maybe the next thing they will try is helicopter money?

maybe print money and UBI it, or forgive student loans, give tax breaks or free medical insurance.

inequality is increasing. populism is increasing. surely only a matter of time before a politician responds to this?
looks like my crystal ball was working
Reply With Quote
  #1216  
Old 26.04.2020, 20:36
Forum Veteran
 
Join Date: Aug 2011
Location: Bern
Posts: 665
Groaned at 19 Times in 12 Posts
Thanked 464 Times in 294 Posts
spalebärg has a reputation beyond reputespalebärg has a reputation beyond reputespalebärg has a reputation beyond reputespalebärg has a reputation beyond repute
Re: Gold Buying

I wonder what this means for gold and silver prices in the near future?

Watch this video presentation with Andrew Maguire starting at the 22:00 mark and pay close attention.

Reply With Quote
This user would like to thank spalebärg for this useful post:
  #1217  
Old 17.05.2020, 20:42
Forum Veteran
 
Join Date: Aug 2011
Location: Bern
Posts: 665
Groaned at 19 Times in 12 Posts
Thanked 464 Times in 294 Posts
spalebärg has a reputation beyond reputespalebärg has a reputation beyond reputespalebärg has a reputation beyond reputespalebärg has a reputation beyond repute
Re: Gold Buying

Gold Chart: In Pounds since 2000 a 9 Bagger

Chards (the coins people) sent me an email recently saying that in pounds gold had surpassed its previous all-time-high.
You may have to adjust the time and currency in the chart above but since 2000 in GBP gold is a nine-bagger. Holy Moly!

In reality does this only indicate how paper currencies have been inflated by excessive monetary expansion (money printing)?
Reply With Quote
  #1218  
Old 17.05.2020, 20:54
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,365
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Gold Buying

Quote:
View Post
Gold Chart: In Pounds since 2000 a 9 Bagger

Chards (the coins people) sent me an email recently saying that in pounds gold had surpassed its previous all-time-high.
You may have to adjust the time and currency in the chart above but since 2000 in GBP gold is a nine-bagger. Holy Moly!

In reality does this only indicate how paper currencies have been inflated by excessive monetary expansion (money printing)?
Well below 1980 price in £ or USD after inflation, a double in 40 years let me think thats less than 2% compound, I suspect a Bank deposit would have performed better as interest rates were very high then.
Reply With Quote
  #1219  
Old 17.05.2020, 21:25
Forum Veteran
 
Join Date: Aug 2011
Location: Bern
Posts: 665
Groaned at 19 Times in 12 Posts
Thanked 464 Times in 294 Posts
spalebärg has a reputation beyond reputespalebärg has a reputation beyond reputespalebärg has a reputation beyond reputespalebärg has a reputation beyond repute
Re: Gold Buying

Nowadays many central banks have fixed interest rates at or below zero. Since the interest rate can be seen as the cost of fiat currency. That means that paper currency is worth ummmm nothing. I wonder what that might mean for gold, the only real money, when currencies are worth nothing.
Something divided by nothing = infinity
Reply With Quote
  #1220  
Old 17.05.2020, 21:35
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,365
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Gold Buying

Quote:
View Post
Nowadays many central banks have fixed interest rates at or below zero. Since the interest rate can be seen as the cost of fiat currency. That means that paper currency is worth ummmm nothing. I wonder what that might mean for gold, the only real money, when currencies are worth nothing.
Something divided by nothing = infinity
Gold has holding costs, safe keeping & Insurance so has always had a negative interest rate
Reply With Quote
Reply

Tags
gold, swiss franc




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
GOLD - Int'l recognition of swiss gold coins? Uncle GroOve Finance/banking/taxation 19 19.08.2011 19:04
Buying gold in Zurich Tiger Other/general 27 07.11.2010 15:21


All times are GMT +2. The time now is 02:23.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2023, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0