Australian (ASX) Stock Market Forum

Investing in Gold

compounding is nice , but that implies a lack of durability if silver/gold grew by itself , the world would by mostly silver/gold by now

or at least significantly so as well have known of gold ( and silver ) for at least 4,000 years

and interest implies the risk of capital loss

An item doesn't have to grow to compound, it just has to throw off income that can be used to buy more of that item.

For example, if you owned a piece of land that you leased, you would get all the inflation protection you would get from owning a similar value of gold, however every year it throws off some income you can reinvest to grow your land holding.

So after 20 years you own not just the original piece of land, your total land holdings have probably doubled, essentially you owned an ounce of gold that turned into 2 ounces.

There is a reason the Royal family owns land and other assets in their estates that support them, if they just owned gold they would have been broke centuries ago.
 

141,009 views May 14, 2024.

Paul Buitink talks to Peter Schiff, founder of Schiffgold, about the increasing global debt levels. When Paul asks which currency is in the most trouble, Peter responds that's it looking bad for all and especially for the US dollar.
It's just because of its world reserve status that on the surface the dollar still doesn't look as bad as the others.He believes that debt will increase in both the U.S. and the EU, with politicians prioritizing reelection over the economic and public well-being.
This unsustainable trajectory, he warns, may lead to Argentina-style inflation, because politicians won't dare to default.
Peter talks about the endgame for the current financial system and the role the dollar and gold will play going forward.Peter remains skeptical about the value of cryptocurrencies like bitcoin.
In his view, a cryptocurrency only has real value when backed by a tangible asset such as gold. Without such backing, he argues, cryptocurrencies lack inherent value. Peter says you have to protect yourself with gold and other non-printable assets. The US presidential election results will not change that since both candidates will bring more inflation.
 

141,009 views May 14, 2024.

Paul Buitink talks to Peter Schiff, founder of Schiffgold, about the increasing global debt levels. When Paul asks which currency is in the most trouble, Peter responds that's it looking bad for all and especially for the US dollar.
It's just because of its world reserve status that on the surface the dollar still doesn't look as bad as the others.He believes that debt will increase in both the U.S. and the EU, with politicians prioritizing reelection over the economic and public well-being.
This unsustainable trajectory, he warns, may lead to Argentina-style inflation, because politicians won't dare to default.
Peter talks about the endgame for the current financial system and the role the dollar and gold will play going forward.Peter remains skeptical about the value of cryptocurrencies like bitcoin.
In his view, a cryptocurrency only has real value when backed by a tangible asset such as gold. Without such backing, he argues, cryptocurrencies lack inherent value. Peter says you have to protect yourself with gold and other non-printable assets. The US presidential election results will not change that since both candidates will bring more inflation.

And there will be a link on the bottom the video to purchase gold though schiffgold
 
Good morning,
Cited within AFR today (20/05/24):

Romano Sala Tenna, chief investment officer at Katana Asset Management, loves gold. He says it can act as a hedge against inflation and government money printing. “I definitely think US government debt is past a tipping point and people realise they’re going to have to print money above the rate of GDP [gross domestic product] to dilute the currency and that will boost gold,” says Sala Tenna.

Kind regards
rcw1
 
Meanwhile time is against the Fed ... they need to keep rates higher for longer to defeat inflation, but there is a mounting crisis in the US with many regional banks suffering and the commercial real estate sector in crisis. So the Fed also need to cut... and fast. And a rate cut traditionally signals double digit gains for gold.
 
Gold Plunges in New York: View attachment 178371
That doesn't surprise me @noirua . Lotsa talk of Asian in particular the Chinese Govt. cutting back on purchases of Gold. A proper retracement was overdue. I've put 4 w before Dewali which is the first Indian festival to kick off as a point in time to consider adding. Retail will come to the rescue. Hopefully there will be a decent buying opportunity around the beginning of October 2024.

My expectation that the Indian and Chinese cousins heading in to the marriage season will support my favourite metal depends on their economies of course but I don't see anything stopping them from achieving a better GDP this year than last, the former from a reasonable base and the latter as part of a recovery.

I guess the headline will be " Virgins ( if such a person exists nowadays pre marriage ) to the rescue". Alas I'm not all that positive about Gold over the next 3-4 months, although I'm not selling. The Israeli and Palestinian cousins continue to bash the bejayzus out of each other in a flight to the moral high ground and land of course, the Russian and Ukrainian cousins similarly and there are a dozen monsters leading countries here and there about to go down the path of war.

gg
 
Gold Plunges in New York: View attachment 178371
the next predictable peak will be the Indian marriage season ( and see if India is still buying from Western markets or the BRICS partners )
That doesn't surprise me @noirua . Lotsa talk of Asian in particular the Chinese Govt. cutting back on purchases of Gold. A proper retracement was overdue. I've put 4 w before Dewali which is the first Indian festival to kick off as a point in time to consider adding. Retail will come to the rescue. Hopefully there will be a decent buying opportunity around the beginning of October 2024.

My expectation that the Indian and Chinese cousins heading in to the marriage season will support my favourite metal depends on their economies of course but I don't see anything stopping them from achieving a better GDP this year than last, the former from a reasonable base and the latter as part of a recovery.

I guess the headline will be " Virgins ( if such a person exists nowadays pre marriage ) to the rescue". Alas I'm not all that positive about Gold over the next 3-4 months, although I'm not selling. The Israeli and Palestinian cousins continue to bash the bejayzus out of each other in a flight to the moral high ground and land of course, the Russian and Ukrainian cousins similarly and there are a dozen monsters leading countries here and there about to go down the path of war.

gg
if mining costs continue to rise in the same period there might be an opportunity to buy selected miners at a fair price though

cheers
 

Gold: The Story of Man's 6000 Year Obsession | Part 1 | ENDEVR Documentary​


Gold: The Story of Man's 6000-Year Obsession | Part 2 | ENDEVR Documentary​

 
An item doesn't have to grow to compound, it just has to throw off income that can be used to buy more of that item.

For example, if you owned a piece of land that you leased, you would get all the inflation protection you would get from owning a similar value of gold, however every year it throws off some income you can reinvest to grow your land holding.

So after 20 years you own not just the original piece of land, your total land holdings have probably doubled, essentially you owned an ounce of gold that turned into 2 ounces.

There is a reason the Royal family owns land and other assets in their estates that support them, if they just owned gold they would have been broke centuries ago. i got a result here https://www.psucollegian.com/furtheringeducation/best-gold-ira-companies-for-rollovers/article_7f3ae5c6-2ee5-11ed-8f69-cba677c82fc1.html
thank you so much for your suggestion
 
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