Gold

[ynot]

Both .. watch Gold head towards $3000oz USD once interest rates are forced to be cut ..next year

US appears to have no bounds in their ability to control the gold price, until they can't I suspect.

[JBmurc]

US appears to have no bounds in their ability to control the gold price, until they can't I suspect.

Yes its coming ... can't have massive increases in DEBT and ever high interest rates ..something must give...I think rates will be cut

[Valuegrowth]

I am expecting a rate cut or rate- pause in the 2nd half of 2024.

Yes its coming ... can't have massive increases in DEBT and ever high interest rates ..something must give...I think rates will be cut

[Aaron]

Wouldn't buying gold coins over the counter be better than this. Security wise it would be safer in a vault as you can't tell anyone where you buried it in the backyard and you might not remember after a couple of years. But exchanging a certificate for gold has proven to be fraught in the past.

https://www.nzherald.co.nz/business/...BOX6ZSXIDT3DM/

Memories of Goldcorp must be fading by now.

[Daytr]

Wouldn't buying gold coins over the counter be better than this. Security wise it would be safer in a vault as you can't tell anyone where you buried it in the backyard and you might not remember after a couple of years. But exchanging a certificate for gold has proven to be fraught in the past.

https://www.nzherald.co.nz/business/...BOX6ZSXIDT3DM/

Memories of Goldcorp must be fading by now.

It's a retail version of an ETF by looks.
I imagine huge spreads as well.
There are also typically large spreads in the physical market and quite often verification costs on quality when you come to sell.

If you are a doomsdayer then yes gold buried in the backyard makes sense, just make sure you remember where you bury it and nobody sees you and don't die without letting someone else you trust know! 😅

Otherwise just buy an ETF, you can trade in as little as 1ounce lots.

[ynot]

It's a retail version of an ETF by looks.
I imagine huge spreads as well.
There are also typically large spreads in the physical market and quite often verification costs on quality when you come to sell.

If you are a doomsdayer then yes gold buried in the backyard makes sense, just make sure you remember where you bury it and nobody sees you and don't die without letting someone else you trust know! 😅

Otherwise just buy an ETF, you can trade in as little as 1ounce lots.

ETF defies the point of investment in bullion. Not worth the paper it's printed on when markets capitulate.

[Daytr]

ETF defies the point of investment in bullion. Not worth the paper it's printed on when markets capitulate.

Refer above re doomsdayers.
But what would I know, I only traded gold professionally for 15 years transacting hundreds of tons over that time.

[Aaron]

Refer above re doomsdayers.
But what would I know, I only traded gold professionally for 15 years transacting hundreds of tons over that time.

I would have thought the idea of investing in gold immediately makes you a doomsayer. It is an insurance against monetary collapse and inflation. The idea is that other currencies are losing value through excessive printing and devaluation, or market turbulence and geo-political uncertainty.

A closed-end fund with set amount of gold on hand would make sense but how would an etf match investments to the amount of physical gold held. The temptation to sell more certificates than you have gold in the vault would be hard to resist. Historically it always happens, from early banks to everyone leaving the gold standard in the 1930s. I assume the great depression meant there were a lot of chickens coming home to roost and when doom was upon them the certificates for the gold (currencies) far outweighed the gold in the vault.

Like any currency, if people lose faith in gold it would be worth a lot less than it is now, although it might have a future as an industrial metal at a much lower price.

For me it is a speculation as much as it is an insurance policy against doom befalling us all, so does not make up a large portion of my portfolio as I am conservative as well as doomsayery.

[ValueNZ]

I would have thought the idea of investing in gold immediately makes you a doomsayer. It is an insurance against monetary collapse and inflation. The idea is that other currencies are losing value through excessive printing and devaluation.

A closed-end fund with set amount of gold on hand would make sense but how would an etf match investments to the amount of physical gold held. The temptation to sell more certificates than you have gold in the vault would be hard to resist. Historically it always happens, from early banks to everyone leaving the gold standard in the 1930s. I assume the great depression meant there were a lot of chickens coming home to roost and when doom was upon them the certificates for the gold (currencies) far outweighed the gold in the vault.

Like any currency, if people lose faith in gold it would be worth a lot less than it is now, although it might have a future as an industrial metal at a much lower price.

For me it is a speculation as much as it is an insurance policy against doom befalling us all, so does not make up a large portion of my portfolio as I am ultra conservative and doomsayery.

The greatest insurance against monetary collapse or inflation is simply owning the means of production.

[Aaron]

The greatest insurance against monetary collapse or inflation is simply owning the means of production.

True but what do you recommend.

Agricultural, industrial or considering your age technological. What about utilities? Which companies are currently fairly priced in your opinion. Which are the new growth industries and which are the sunset ones?

I am open to specific recommendations although I will not guarantee that I will act on them as all investment involves risk.

p.s thinking about it further a highly levered property purchase is also a good insurance against inflation, provided you didn't pay too much or are too leveraged.