Very amusing. So the greatest capture in the magnitude of movement among the respective indexes in is in the gold price. In terms of interest, ownership, investment and speculation from from the average Australia, it would likely have the least association; whereas Sydney house prices are likely to have the greatest association.
You do not have spare money. You have leverage in property. You have a theoretical nett worth based on what you consider your property to be worth less your debt obligations.
You are not in a position to buy Gold.
For those of us who have real liquid assets, it is worth holding something as a hedge against systemic failure.
That pretty much sums up the whole arguement. The property speculators have massive debt and no free capital, even the small amounts of cash they do hold are tied up in offset accounts, in other words, all the eggs are in one basket and they only own part of the basket.
When gold goes up in price they are furious because they see profits going into other peoples pockets. It's not a matter of should they inv est in gold, they CAN'T
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
I'm not sure what your reasoning is? You don't like Gold because you can't afford it. You certainly don't understand Gold or know anything about the market.
We are still considering moving away and it all depends on what happens with the local economy. No point having a nice house if I haven't got a job.
We have had to move several times for work - I hope your job is ok Jimbo - despite all the banter on here I really do wish you the best.
I am just bearish on gold Jimbo that really is my honest view, just as it is my honest view that the Perth market won't crash.
The Whole Truth
19 Mar 2015, 07:30 PM
That pretty much sums up the whole arguement. The property speculators have massive debt and no free capital, even the small amounts of cash they do hold are tied up in offset accounts, in other words, all the eggs are in one basket and they only own part of the basket.
When gold goes up in price they are furious because they see profits going into other peoples pockets. It's not a matter of should they inv est in gold, they CAN'T
You are a card Goldbug. You use any excuse to try to keep your gold ponzi scheme alive.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
We have had to move several times for work - I hope your job is ok Jimbo - despite all the banter on here I really do wish you the best.
That is why I have never been unemployed. I move to where the work is. But you can't do that unless you can dispose of your house. The company I work for is heavily reliant on the oil and gas industry for the big dollars work. We do other stuff to keep the workshop full. We will stay in business, but we will have to trim down. I am keeping my options open. As Brad Pitt said in WWZ, "to survive, you have to keep moving".
As for Gold, it did exactly what it was supposed to do yesterday when Yellen hinted that the Fed may not raise rates in June after all (surprise, bloody surprise).
You maintain faith in a paper, debt based system and I am happy to use that system and profit from it. But I am not going to keep all of my stored energy in an experimental concept that has only been running for 40 years.
I prefer to hold a percentage of my stored energy in a tried and tested system that has outlived empires, wars and every fiat currency that has ever existed (save for the current batch).
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Very amusing. So the greatest capture in the magnitude of movement among the respective indexes in is in the gold price. In terms of interest, ownership, investment and speculation from from the average Australia, it would likely have the least association; whereas Sydney house prices are likely to have the greatest association.
Which only goes to show that the average Australian is a hopeless investor. The Herd generally always lose on investments, that's how the rich get rich, by milking the herd.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
Come on goldbug, show us what a gun investor you are and explain how money in an offset account is "tied up"
Kuyuss
19 Mar 2015, 07:06 PM
Very amusing. So the greatest capture in the magnitude of movement among the respective indexes in is in the gold price. In terms of interest, ownership, investment and speculation from from the average Australia, it would likely have the least association; whereas Sydney house prices are likely to have the greatest association.
What's really funny is that's nothing but movement in the AUD, not the value of gold.
Which only goes to show that the average Australian is a hopeless investor. The Herd generally always lose on investments, that's how the rich get rich, by milking the herd.
In a recent BBC survey, 65% of respondents could not differentiate between deficit and debt and 85% could not give a basic answer to the question "what is Gross Domestic Product?"
I was around in 1979 when every man and his dog was rushing out to buy KR's and Sovereigns because Gold had gone up by so much in such a short space of time. They didn't realise that they were the exit strategy of everyone who had bought Gold two years before.
Money is energy and energy cannot be created or destroyed. It can only be moved from one form to another.
Understand that, and you are half way to not ending up flat broke.
Trollie
19 Mar 2015, 08:43 PM
What's really funny is that's nothing but movement in the AUD, not the value of gold.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
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