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Price of Gold in USD moving right along


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26 minutes ago, Brunolem said:

As far as derivatives are concerned, they don't influence the price of the concerned commodities like the gold paper market does. 

that's one of the many unsubstantiated fairy tales pertaining to gold.

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16 hours ago, suzannegoh said:

Is the fact that the gold market is manipulated a reason why people should invest in gold or a reason why they shouldn't?

I´m not an investor, so I don´t know.. maybe Marc Faber can tell us what to do?

 

https://marcfabersblog.blogspot.com/2018/03/marc-faber-gold-wont-collapse-unless.html

 

If Trump does indeed dismantle the FED and go back to a Gold Standard, as many US Patriots hope, then gold is the shiny new thing to have!

 

 

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9 hours ago, wilailuk said:

 

 

If Trump does indeed dismantle the FED and go back to a Gold Standard, as many US Patriots hope, then gold is the shiny new thing to have!

 

 

I wouldn't hold my breath on that one. 

 

Trump is for more intervention by the Fed, not less. 

 

The gold standard is a (financial) straightjacket that no politician wants...especially in countries crumbling under the weight of debt... 

 

 

 

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9 hours ago, Naam said:

if there was no demand that market wouldn't exist. as simple as that.

Sure enough... and the same could be said for heroin, prostitution or even slaves! 

 

With humans, there is always a market, never mind how pervert... the question is: should everything and anything be offered just because there is a market for it? 

 

Everyone knows why there is a paper gold market, starting with those who implemented it... just ask JP Morgan... 

 

 

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43 minutes ago, Brunolem said:

With humans, there is always a market, never mind how pervert... the question is: should everything and anything be offered just because there is a market for it? 

anything, whether legal or illegal, will be offered if there's a market / demand for it.

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4 hours ago, Brunolem said:

I wouldn't hold my breath on that one. 

 

Trump is for more intervention by the Fed, not less. 

 

The gold standard is a (financial) straightjacket that no politician wants...especially in countries crumbling under the weight of debt... 

 

 

 

Trump wants to be re-elected, that´s why he want´s to postpone the crash/reset, by having FED doing more QE.

 

Maybe those "crumbling countries" actually could need a straightjacket on their spendings? Oh, but that´s so very boring and old fashioned!

 

 

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28 minutes ago, wilailuk said:

Trump wants to be re-elected, that´s why he want´s to postpone the crash/reset, by having FED doing more QE.

 

Maybe those "crumbling countries" actually could need a straightjacket on their spendings? Oh, but that´s so very boring and old fashioned!

 

 


It would take a lot of political will to push through a new gold standard.  The first thing that would happen upon the idea being floated is that the New York Times, Washington Post, and CNN would have a tantrum.  Then they’d come up with reasons that it’s racist and only benefits the rich.
 

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50 minutes ago, suzannegoh said:


It would take a lot of political will to push through a new gold standard.  The first thing that would happen upon the idea being floated is that the New York Times, Washington Post, and CNN would have a tantrum.  Then they’d come up with reasons that it’s racist and only benefits the rich.
 

A gold standard, initiated by no less than Isaac Newton, would certainly not be set by the US, which probably hasn't much, if any, gold by the way. 

 

In the event of a paper currency collapse, countries like China and Russia could launch gold backed currencies... probably the reason why they are hording it, while the Western grasshoppers are partying. 

 

Another possibility could be a gold backed cryptocurrency... there is a lot of talk about this, and that may well be the future... assuming there is a future... 

 

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I´m not an investor, so I don´t know.. maybe Marc Faber can tell us what to do?
 
https://marcfabersblog.blogspot.com/2018/03/marc-faber-gold-wont-collapse-unless.html
 
If Trump does indeed dismantle the FED and go back to a Gold Standard, as many US Patriots hope, then gold is the shiny new thing to have!
 
 
Faber lives in Chiang Mai and occasionally gives talks here. What he says at the start of that video is a pretty good point - that you can't make your financial plan assuming that WWIII will start tommorrow.
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1 hour ago, Brunolem said:

Another possibility could be a gold backed cryptocurrency... there is a lot of talk about this, and that may well be the future... assuming there is a future... 

 

Libra, aka "stable coin" has a better chance of being the future.  Not that that's a good thing.

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1 hour ago, Misty said:

Libra, aka "stable coin" has a better chance of being the future.  Not that that's a good thing.

It seems unlikely considering Facebook's record with (un)security. 

 

One would have to be very careless to hand one's wallet to Facebook. 

 

Facebook addicts may use it for small transactions, but the big money will stay out of it, as well as the 5 billion people who don't use Facebook... 

 

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  • 1 month later...
16 minutes ago, Gumballl said:

Gold purchases, over time, may hold their value... but are a piss poor investment. Invest your monies in other places other than gold.

It has been said over and over again that gold must be (is) seen as an insurance, not an investment. 

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3 hours ago, Brunolem said:

Better hold gold than currencies... 

cur_race.jpg

 

applies to idiots who kept their money under the mattress for 48 years (1971 till 2019) instead of investing it and generating an average of 12 to 15% p.a. ending up with several hundred percent and much more profit.

 

it also applies to idiots who consider others to be idiots because they did not follow theories which are clearly proven idiotic.

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Gold is not an investment. It is pure speculative.

These two graphs are eerily similar: the 20-yr historic gold price and a text book asset bubble. Yes you may make money trading gold, if another bubble forms and you have the ability to time it right.

 

Annotation 2019-08-06 191737.jpg

Annotation 2019-08-06 190554.jpg

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1 hour ago, suzannegoh said:

Gold going from $35 per ounce in 1971 to $1500 per ounce now works out to an average annual return of about 8%. That's better than nothing, but nothing to get excited about.

that's correct. but i wonder whether any of the participants in this forum had 48 years ago enough money to invest a significant amount in Gold. i'm one of the oldest farts (age wise) in Thaivisa and finished university in 1971. one can easily imagine how big my savings were. :crying: 

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1 hour ago, suzannegoh said:

Gold going from $35 per ounce in 1971 to $1500 per ounce now works out to an average annual return of about 8%. That's better than nothing, but nothing to get excited about.

 

Please refer to post #107. 

 

Ditto for the troll reacting below your post. 

 

Strange how gold haters insist on considering it as an "investment" when it is presented as an insurance... one doesn't buy gold to make money, but to avoid losing money in the event of a crisis... 

 

Obviously, for gold haters there are no crisis, in the same way that for those who don't buy health insurance, there is no such thing as getting sick... 

 

 

 

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i have never had gold in my portfolio. Been through 2000 dot com crash, been through 2008 real estate bust. Always had cash reserve for a few years expenses. That is insurance enough for me. If there is a crisis that will make US currency became worthless i have bigger things to worry about.

$35 invested in S&P 500 in 1971 would be $3439 at the end of 2018, about twice as much as gold. 35 / 1.19 x 116.94 = 3439. https://en.wikipedia.org/wiki/S%26P_500_Index

 

 

$290.78 invested in the index in 1971 would have been cool $1,000,000 in 2018, plus another 15-18% year-to-date 2019.

1971, i was 11.

 

 

 

 

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People keep saying that Gold is insurance without saying exactly what they are insuring against.  If the idea is to insure against a rapid devaluation of the dollar, the question then is how likely is that to happen, how likely is it that gold will move inversely of the dollar when that happens, and how much is that insurance worth.  And if it’s insurance against volatility in the stock market, then the question would be whether having x% of your portfolio in gold reduces a portfolio’s volatility better than having x% in bonds, and whether the volatility matters if you are a long term investor.

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On 8/7/2019 at 10:59 PM, Gumballl said:

Gold purchases, over time, may hold their value... but are a piss poor investment. Invest your monies in other places other than gold.

I admit I always smile when I read so many say this but then again

"Horses For Course" Not everyone see's things/understands things in similar fashion.

 

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7 minutes ago, suzannegoh said:

People keep saying that Gold is insurance without saying exactly what they are insuring against.  If the idea is to insure against a rapid devaluation of the dollar, the question then is how likely is that to happen, how likely is it that gold will move inversely of the dollar when that happens, and how much is that insurance worth.  And if it’s insurance against volatility in the stock market, then the question would be whether having x% of your portfolio in gold reduces a portfolio’s volatility better than having x% in bonds, and whether the volatility matters if you are a long term investor.

 

I do not know what folks mean "exactly" But I know many consider gold a hedge against inflation

 

You know that old saying an ounce can always buy a fine suit?

 

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3 hours ago, Thailand J said:

i have never had gold in my portfolio. Been through 2000 dot com crash, been through 2008 real estate bust. Always had cash reserve for a few years expenses. That is insurance enough for me. If there is a crisis that will make US currency became worthless i have bigger things to worry about.

$35 invested in S&P 500 in 1971 would be $3439 at the end of 2018, about twice as much as gold. 35 / 1.19 x 116.94 = 3439. https://en.wikipedia.org/wiki/S%26P_500_Index

 

 

$290.78 invested in the index in 1971 would have been cool $1,000,000 in 2018, plus another 15-18% year-to-date 2019.

1971, i was 11.

 

 

 

 

 

Well yes & like Kuhn Naam said most of us were likely to young to take advantage of the very long term buy & hold strategies ????

 

But you mention the S&P500 & a shorter term scenario & more in line with time frames many here could have taken part in would look like this for gold vs the S&P500 from 2000 till now (gold red/S&P500 blue)

 

Sorry was lazy to find a better chart & this is a screen grab off a recent video

 

 

 

Untitled.jpg

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15 minutes ago, mania said:

 

I do not know what folks mean "exactly" But I know many consider gold a hedge against inflation

 

You know that old saying an ounce can always buy a fine suit?

 

The problem with using gold as a hedge against inflation is that the old saw that “an ounce of gold bought a fine toga in Roman times and will buy a fine suit today” is only true it you carefully pick the dates on which you buy you gold and then sell it to buy that suit.  The inflation adjusted price of gold has been quite volatile over our lifetime.

uploads_1536602670694-goldinf.png

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1 hour ago, mania said:

a shorter term scenario & more in line with time frames many here could have taken part in would look like this for gold vs the S&P500 from 2000 till now

Gold vs S&P500 short terms 3, 5 and 10 yrs.

Gold-blue, Index- red.

 

gold3.jpg

gold5.jpg

gold10.jpg

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3 hours ago, suzannegoh said:

People keep saying that Gold is insurance without saying exactly what they are insuring against.  

Better than long and complicated explanations, just wait and see... 

 

The wait shouldn't be that long, say between 3 months and 3 years from now. 

 

Then you will get your answer, plain as day... 

 

Keep in mind that for many months now central banks, who are generally the first to deride gold, have been buying gold like mad, or repatriating it when it is stored abroad... why would they do that? 

 

The BIS also very recently amended its policy on gold selling by central banks... go wonder why... 

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