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  #1201  
Old 14.01.2020, 00:14
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Re: Gold Buying

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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.
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  #1202  
Old 14.01.2020, 01:28
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Re: Gold Buying

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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
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Old 14.01.2020, 10:29
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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?
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Old 14.01.2020, 10:33
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Re: Gold Buying

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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
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  #1205  
Old 14.01.2020, 11:56
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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.
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Old 14.01.2020, 14:44
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Re: Gold Buying

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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.
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Old 14.01.2020, 16:04
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Re: Gold Buying

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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?
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