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Originally Posted by Zuts
Sure keep your money in gold, put it in a bank safe-deposit with no interest at an effective interest rate of negative many %, as you don't get interest and have to pay for storage. So $88,000 Aud a kilo. Convert your savings to Gold, say you have $500,000 in super around 4.5 kg of gold., so convert. ATM its around 2600 aud an ounce. But a few months ago it was around 2000 Aud an ounce. Eventually it will settle down to this, so bang you lose %20, worse than the stockmarket crash.
Gold is never a way to to make money. It's a scared man's way of saving some value in times of stress. I would never call it an investment. People invest for many reasons, one is to have a comfortable retirement. Comfortable is not shaving a bit off your gold bar so you can buy a pack of smokes.
To be brutally honest, maybe generally people may have $10,000, $50,000, $100,000 in gold as part of their super. So what, it's hardly enough to retire on and worse will never provide an income stream as it provides no interest.
In the zombie apocalypse try getting to that bank vault, in any case why would you bother...
I have around 10Kg of silver and some gold. It's in my draw and just sits there, like my remaining partial bitcoins which I cant be bothered cashing out coz they might go up and i may not have to realise my loss. So currently my silver holdings are about $8,000. A few months mortgage. I got the bars for around $610 per kilo. Now around $800. A 30% gain, great but they have been in the draw for around 5 years, what is the lost opportunity cost if i purchased shares or other investments and cashed out before this. Next year it will probably be back to around $600 per kg. So again in the draw for 6 years and no change.
You invest to make money, not just to stay safe in bad times for a few months, of course you can do both, but i reckon Gold is pretty poor money, at least a dollar will always be a dollar, especially in these times of minimal inflation.
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Originally Posted by multiweb
I wonder how long the banks are going to last this time with all the loans and debt. Are we going to have to bail them out again?  |
I don't think we bailed out the banks before, did we?? Hell would freeze over before the big 4 would fall over.
Greg.