Black Monday

[SailorRob]

https://twitter.com/JamesEagle17/sta...183552514?s=20

Epic

[Bobdn]

What exactly are we to do with Gold?

Thats a good question. 99.9 percent of NZers would ask exactly the same thing. Why gold?

Helpful article here from the people at Visualcapitalist: Charted:30 Years of Central Bank Gold Demand:

https://www.visualcapitalist.com/cha...k-gold-demand/

[Baa_Baa]

What exactly are we to do with Gold?

Gold, real gold, physical, in your possession, is supposed to be an insurance policy against fiat currency collapse. Silver is as well. It's just insurance and for the devoted, it's usually a small proportion of portfolio except for the nutters who go overboard, as a hedge against the most extreme of financial outcomes. Which have been forecast to happen for decades, but haven't happened yet.

I used to post a lot about gold, putting up hypothesis and charts and all sorts of apparently fundamental analysis, for years, mainly to profit on a few miners who consistently produced gold and sold it at a profit, (I was trading their options), but when it all comes down to it ... there are a few who believe that holding a stash of the real stuff is insurance against collapse of fiat currency.

Until the Mob finds you and steals all of it. True story.

And they will. Especially if you post about what you have or intend to have on a public forum on the internet.

I don't have any more physical precious, it's not worthy of even a small % in my portfolio. The chances of all the global fiats collapsing at the same time and gold becoming the global currency de jour, is so far from credible that owning physical gold, or silver, in this unlikely event, is improbable.

Owning gold or silver miners, as some do as a proxy, is even less credible. Sometimes they do well, most times they don't.

[Bobdn]

True, gold can be a pretty crappy investment for an individual. But as the article above details, its not a bad thing for central banks to have.

[SailorRob]

Gold, real gold, physical, in your possession, is supposed to be an insurance policy against fiat currency collapse. Silver is as well. It's just insurance and for the devoted, it's usually a small proportion of portfolio except for the nutters who go overboard, as a hedge against the most extreme of financial outcomes. Which have been forecast to happen for decades, but haven't happened yet.

I used to post a lot about gold, putting up hypothesis and charts and all sorts of apparently fundamental analysis, for years, mainly to profit on a few miners who consistently produced gold and sold it at a profit, (I was trading their options), but when it all comes down to it ... there are a few who believe that holding a stash of the real stuff is insurance against collapse of fiat currency.

Until the Mob finds you and steals all of it. True story.

And they will. Especially if you post about what you have or intend to have on a public forum on the internet.

I don't have any more physical precious, it's not worthy of even a small % in my portfolio. The chances of all the global fiats collapsing at the same time and gold becoming the global currency de jour, is so far from credible that owning physical gold, or silver, in this unlikely event, is improbable.

Owning gold or silver miners, as some do as a proxy, is even less credible. Sometimes they do well, most times they don't.

All good points and well understood, plenty of times in 20th century history Gold would have been advantageous to many people. The post was about central banks though.

Certainly don't need any 'helpful articles', specially not that one which I can only assume is parody.

[Recaster]

Nice to be a nutter.

Gold is money. Things in gold terms don't increase too much in price going back a century at least.

Oil for example is even lower than it was in gold terms 100 years ago.

Fiat currencies are convenient but in the end they all go to zero even if it takes centuries.

Just in Buffett's lifetime the USD has lost 94% of its purchasing power.

Gold has a limited supply while fiat is essentially unlimited.

Anyone with cash is getting slaughtered by inflation currently but inflation is continuous.

The RBNZ will fold like all the other central banks will in the face of shrill cries from property owners and businesses.

But if your currency is not a store of value then your monetary system is both flawed and corrupt.

Gold just went over US$2,000.

[Tomtom]

https://twitter.com/JamesEagle17/sta...183552514?s=20

Epic

Yay, the inflation problem must be fixed! Let's roll out the bunting and mission accomplished flag.

[bull....]

https://www.nzherald.co.nz/business/...PIX7SCHQ6G6V4/

Fitch Solutions downgrades New Zealand GDP outlook

(Premium content)

It's official !

also NZ has been given warning by rating agencies over debt level's , with our current account at record levels and set to get worse with the economy going into recession.

Guess thats why mahuta is going to china to beg them to buy more goods from NZ

In the meantime nz50 is playing out a very bearish wedge pattern which foretell's much lower levels ahead.

[SailorRob]

Nice to be a nutter.

Gold is money. Things in gold terms don't increase too much in price going back a century at least.

Oil for example is even lower than it was in gold terms 100 years ago.

Fiat currencies are convenient but in the end they all go to zero even if it takes centuries.

Just in Buffett's lifetime the USD has lost 94% of its purchasing power.

Gold has a limited supply while fiat is essentially unlimited.

Anyone with cash is getting slaughtered by inflation currently but inflation is continuous.

The RBNZ will fold like all the other central banks will in the face of shrill cries from property owners and businesses.

But if your currency is not a store of value then your monetary system is both flawed and corrupt.

Gold just went over US$2,000.

And in Buffett's lifetime what has per capita GDP done and the standards of living?

What in his lifetime have common stocks done?

It's not designed as a store of value over the long term, cash is just for shifting around stuff - liquidity. Who sat on physical cash for 92 years?

Cash can be invested too you know. I have nothing against Gold and what you say is true but it misses the point.

Nobody needs to sit on cash and common stocks have over the long term outperformed Gold by 11,700% per year. Not a typo.

Shouldn't things in terms of Gold become much much cheaper over time as they become easier to produce?

If you hold Gold over the long term you'll get killed and if yo hold cash you'll get killed much worse.

[percy]

I have a spare $50,000 to buy something to hold for 10 years..
I could buy ;
A work of art and hang it in the lounge.....Enjoy it every day.
Buy yield shares ...................................Enjoy approx a daily yield of $8.20 a day ,and expect they have grown to 2 or 3 times my cost price.
Buy spec shares ....................................Enjoy hopefully that they have grown 10 to 15 times my cost.
Buy a bond...........................................Enj oy a yield of $8.20 per day and get my $50,000 back in 10 years.
Buy Gold Bars.......................................Nothing to enjoy here.Just hope a bigger fool will buy they off me.[ if I can remember where I buried them.]...lol