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The nice thing about gold is ...

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Not applicable
that they cant print it. A 10 Dollar bill you may hold in your hand could only be worth $9.50 for all you know ! The more paper money the central banks print the less worth is the value of that currency already in circulation. You know , just like in Zimbabwe. Magabe thought that the more money he printed the more money would be available. By printing those bank notes he ruined the economy of once prosperous Zimbabwe. It has become to easy to print paper promissory notes that are not really worth there face value. Gold is the real thing. Gold will dramatically rebound when people realize that the trillions upon trillions of paper money promissory notes circulating may become broken promises and worth a whole lot less.
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34 REPLIES 34
Super Contributor
after trouncing three FX accounts and losing a packet I finally learn't to never ever try to 2nd guess the USD. It will eventually get it's come uppance but not before it ruins every dollar bear out there. It's a simple fact that the USD is still the world's reserve currency and that is proven by it's amazing run against just about every currency bar the JPY. For now, if you bet against it, you do so at your own peril
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Super Contributor
Lol. Here's a theory. Inflation is hitting the mining sector in a hard way, in RSA's mining, we also have BEE and labour action to contend with. I don't know how things are looking for mining in China, but what if, in the next year or so, a whole lot of mining operations start getting shut down. And no more gold is coming out the ground, and no-one has faith in banking anymore. If the masses have a knee-jerk reaction to spread their portfolio outside of banking asset classes, where do you think they'd want to put a portion of it? Lol, imagine what that could do to the gold price.
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Not applicable
That will weaken the rand and keep most mines in business.
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Super Contributor
mmm gold rather than banks? But ASAs chart looks way better than GFIs. Not even sure you can chart GFI, looks like Niagra Falls.
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Not applicable
H&S on Absa down to R40... Not sure if it looks so pretty.
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Valued Contributor
but the gold you hold in your hand could also be worthless (unless you have some holes in your teeth). An so far the market is way lovign the printed paper more then the yellow relic ?
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Super Contributor
at the moment,yes,but just wait and see,the coming months!
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Super Contributor
Not much pretty now V, but ASA is holding support. GFI didn't even know it had support.
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Super Contributor
Most people who are invested in gold also only have a piece of paper. If the banking system (supply of cash and credit) did collapse I reckon the government would probably take ownership of all physical gold and issue a promissory note. What would you do with a gold ingot anyway? Will Pick n Pay accept it as payment for those tin cans and bottled water?
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Frequent Contributor
Gold is inflation hedge just like other tangible assets, which is why it will go to +1000$ again. Its clearly not the safe haven of choice at the moment.
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Super Contributor
in 1980 gold was $800 now 30 years later its ar $700 if that is inflation proof you are serrrrrrriously mistaken...If you want an infation proof investment buy chappies chewing gum..it will always sell a cent or 2 above cost( infalation) its liquid over 3 million trade every day and it will be arround in 20 yeras time..
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Carol_1
New Contributor
That is correct. However you know how things can turn rather dramatically - this might just be the time for gold. Even although i must say things will have to get worse.
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Carol_1
New Contributor
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Frequent Contributor
Gold price will rise going into next years inflationery figures
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Highlighted
Super Contributor
For buying gold, you must select rare gold coins, some of them have tremendous values and increase much faster than gold only, but thats not because of gold price only... its also very interesting as a hobby. lol...
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Super Contributor
If u bought the all mighty DOW 10 years ago...u sitting on a negative return right now.
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Super Contributor
not if you bought it in 1980 GOLD pays no dividends and cost money to store..if this is the best investment you think you can make right now prehaps markets are not for you..Like I said before if you want inflation fighters buy chappies...over 5% of our population eats one every single day...there is a wholsale and retail market. It will always sell above costs and it is liquid you can turn your stock many many times in a year...this is my advice to the boys putting gold under the matress.
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Super Contributor
medium term john...medium term...Gold has always been a dog between 1980 to 2000. But the fact is that even with the current sell off it still posts gains of 300% for the past 8 years. The best prt of Gold is yet to come. I was never a gold bull before that. If u wanna short it...go ahead. Or maybe buy the DOW!
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Not applicable
work it out for me Wiz , and if we bought 1 kilo of gold 10 years ago then where would we be today ?
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