 | | | 
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
| | Re: Gold Buying | Quote: | |  | | | 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.
| 
14.01.2020, 01:28
|  | 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
| | Re: Gold Buying | Quote: | |  | | | 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
| 
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
| | 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?
| 
14.01.2020, 10:33
| | Re: Gold Buying | Quote: | |  | | | 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 | The following 2 users would like to thank for this useful post: | | 
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
| | 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.
| 
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
| | Re: Gold Buying | Quote: | |  | | | 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.
| This user would like to thank spalebärg for this useful post: | | 
14.01.2020, 16:04
|  | 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
| | Re: Gold Buying | Quote: | |  | | | 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?
| This user would like to thank Phil_MCR for this useful post: | | 
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
| | Re: Gold Buying
1646 per OZ
| 
22.02.2020, 17:36
|  | 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
| | Re: Gold Buying | Quote: | |  | | | 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.
| 
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
| | Re: Gold Buying | Quote: | |  | | | Well, you'll probably have about Chf 150k give or take a bit in 10 years time  | | | | | Doing fine so far smart ass
| 
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
| | 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"?
| 
13.03.2020, 00:51
|  | 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
| | Re: Gold Buying | Quote: | |  | | | 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.
| 
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
| | Re: Gold Buying
gold also went down right after the 2008 crisis as holders had to sell it to cover losses and create lquidity
| 
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
| | Re: Gold Buying | Quote: | |  | | | 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.
| 
16.04.2020, 23:06
|  | 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
| | Re: Gold Buying | Quote: | |  | | | 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 | 
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
| | 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. | This user would like to thank spalebärg for this useful post: | | 
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
| | 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)?
| 
17.05.2020, 20:54
|  | 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
| | Re: Gold Buying | Quote: | |  | | | 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.
| 
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
| | 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 | 
17.05.2020, 21:35
|  | 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
| | Re: Gold Buying | Quote: | |  | | | 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 |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | | Thread Tools | | Display Modes | Linear Mode |
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts HTML code is Off | | | All times are GMT +2. The time now is 02:23. | |