Gold

[upside_umop]

No that right SKOL Silver is a much better investment percent wise even my Silver bullion holding is up over 20%pa in real buy sell free market terms an thats the stupid metal that goes into so many important parts of your planes that cannot be replaced by other metal of the same Quality
I heard on news recently their has been 26 Airlines gone toes up over the last year.

But back to GOLD the big Gold picture --the trend is your friend

Would you fancy posting that chart in real prices?

[elZorro]

Quite a tidy site, interesting comments on the recent gold/equity correction, watching silver.

http://goldscents.blogspot.com/2010/...s-brewing.html

[JBmurc]

Would you fancy posting that chart in real prices?

In real prices I'm talking the average selling an buying prices here in NZ from the likes of NZ mint,Trademe,Silver recovery ACB etc that I made not the spot prices which have actually been better but as we seen when silver was at it's lows $15-$17oz NZD the real margin over spot were much more than now the cheapest I was buying for per oz was round $24 now the average per oz selling price is $32-$35

[upside_umop]

No, I fully accept the price it was traded at, but I don't accept it in todays prices. I.e. You need to take into account inflation.

[JBmurc]

No, I fully accept the price it was traded at, but I don't accept it in todays prices. I.e. You need to take into account inflation.

An how much inflation have we had in the last couple years ? housing wise I'm building a better home locally for cheaper than I did with the 4 others I built 4-7yrs ago crazy but true so in that respect their has been some deflation here in property build prices--
But I guessing your talking on the fact of fiat money inflation (say I left my funds of the last year into my local bank say at a high 5% p.a instead of Silver bullion i'd have turned my 40k into 42k less 33% tax + bank charges $40 - on the 2k p.a so if I was lucky I might have made round $1300 or low 3.25% but instead my 40k went into a long term silver bullion investment i.e non-taxable
An say paid average $25oz(which I did) an say now the free market average selling price is $30oz(12 months later which it was) my nett paper profit 20% less true Fiat money inflation I would have recieved at the bank of 3.25% so for that year I was 16.75% better off after Inflation savy

[Skol]

If you had bought gold in 1967 you would have made a 7% return if you sold it now.
Then you should deduct the opportunity cost, i.e. the cost of storing and insuring, and not forgetting that you could probably have done better putting the money in the bank. The volatility on gold makes it a much riskier 'investment' , so the return should have been much greater.

[Skol]

An say paid average $25oz(which I did) an say now the free market average selling price is $30oz(12 months later which it was) my nett paper profit 20% less true Fiat money inflation I would have recieved at the bank of 3.25% so for that year I was 16.75% better off after Inflation savy

No I don't savy. Silver being advertised for $28oz on Trademe but no one's taking the bait.

[elZorro]

I found these charts for gold using two inflation adjusted methods. The standard CPI one implies a few percent gain p.a., ($1,000 over 40 years =500% gain) the other no real gain at the moment. But that would mean gold can go much higher, and has done so before.

http://news.goldseek.com/GoldSeek/1277150455.php

An excerpt from a goldbug site, sure, but a compound interest for gold itself is mentioned.

TGR: You mentioned inflation and, in your last interview with The Gold Report, you said: "Bernanke and the Fed are pursuing a loose monetary policy with a 0% interest rate. There's actually no way we cannot end up in inflation." We're starting to see signs of it now. How is gold going to act in an inflationary environment and, perhaps, even in a hyperinflationary environment?

John Doody: Gold's going up now; it's going to go up more. One of the uses of gold is to protect your purchasing power from inflation, and it's done a damn good job! It always drives me crazy when these talking heads on TV talk about gold now vs. $850 in 1980. They say, "Oh, look where it's gone!" It's gone nowhere. That was a one-day high. The next day the Gold Price was $738. More important is to look at the Gold Price from when it was set free in 1968. It was fixed at $35 for over 30 years. If you just took that $35 from March '68, and I did in a recent issue of the Gold Stock Analyst, and adjusted it by the Consumer Price Index (CPI), gold would have grown from $35 to about $225. That's your inflation protection; everything above $225 all the way up to the current price and the next $1000 – that's all investment gains. From '68 to the present, gold had had an 8.6% compound annual growth rate that was 4.4% above the inflation rate for the period.

TGR: But you hold Gold Mining equities, and you don't hold bullion. In the last market crash, everything crashed – even the gold equities.

John Doody: That's true. The reason that I hold gold equities is because you get better leverage to the Gold Price. We always have to remember that while the stocks are derivatives of gold, they are stocks first. If the buyers disappear for stocks, they disappear for gold stocks too. But when they come back, they come back with a vengeance. In 2009, the Gold Price was up 28% and the XAU was up 37% but the Gold Stock Analyst's Top 10 was up 130%. That's the leverage you can get from owning the right stocks.

The full link: http://goldnews.bullionvault.com/gold_mining_052420107

You can say what you like about gold, it might be a waste of space in a vault. But if I could turn $100k into close to $1mill by spotting (and investing in) another opportunity like OGC and many miners presented in the last 20 months, I want to know all about why that happened.

[Skol]

But that would mean gold can go much higher, and has done so before

Goldseek - remember EZ what I said about goldbugs being the most optimistic bunch on the planet.
I hope you read the disclaimer - 'Goldseek.com makes no representation, warranty or guarantee as to the accuracy or the completeness of the information ..........'.

The expression ' past performance is no guarantee of future returns' applies here.

[JBmurc]

Quite a tidy site, interesting comments on the recent gold/equity correction, watching silver.

http://goldscents.blogspot.com/2010/...s-brewing.html

from your link Elzorro is why I put F/A before T/A on buying shares
--This is one of the big drawbacks to relying solely on technical analysis. At bottoms the technicals will always look terrible. If one basis their trades solely on technicals they will forever be selling at bottoms and eventually they will destroy their portfolio

-yeah Skol good to see your keeping an eye on the free market their is aways a few bargins around that 50oz bar is real cheap basically at the same price the miners get paid for their silver they produce here--- The bar here in NZ mining terms would have taking pocessing of at least 600 tons of ore to getting enough silver to make that bar--
I am very temped to sell a few shares an buy that bar for my Kiwi saver plan

-Still holding the same shares SKOL I see TLS get hammered recently too bad you don't follow some of my picks SVL up over 40% for under a month my most recent buy