In 1980 the dollar was 2x the Rand and gold was $850 to the dollar. So an ounce of gold would cost you R1700...that same gold sold today would fetch a sum of R8000 rand. ....Now at the same time Chappies cost 2 Chappies for a cent so if you had spent your money (R1700) on Chappies you would have had a massive stash of 340 000 Chappies....now selling that at today's price of 30c would net you a return of R102 000 yes that's right the boy who bought Chappies is 10 times wealthier than the man who bought gold...Now ask yourself is it really a good time to buy Gold?
well, thats if you can sell them... lol... this is a cool thread! chappies vs gold. John, i agree, there was way better investments since then than gold. I did pay R3500 for my Krugerrand a few years back, it did quite badly for many years, but now its a bit better, actually not a loss... but thats not really that long time...
The point is who in his right mind will keep gold holdings for 27 years? It's a hedging product, and that is all. The truth is that if you bought NewGold EFT as a hedge against market risk you would have made 38% profit for the year. Can you mention just one other share matching or beating this for 2008?
Kwagga.. My point is over the long term GOLD is has not kept pace with inflation .....if you measure inflation relative to a basic product like a chappie(as you know it will always be sold at a price slightly above cost...... Secondly I see no inverse relationship between stock markets and Gold.....Gold was at a low in 2003 stock markets were at a recent low in 2002 gold peaked in 2008 so did the stock market both have sinse sold off so were is the hedge????