Then I am confused, why the battle between that that does (shares, term deposits, property) and that that does not (gold)? This seems to go on and on and on and on without actually making a point. Then in the case of The Whole Sockdrawer it comes back as Assumptions.
Seems a pointless argument to me.
My only hope for my three boys is that they turn out nothing at all like Chris.
Then I am confused, why the battle between that that does (shares, term deposits, property) and that that does not (gold)? This seems to go on and on and on and on without actually making a point. Then in the case of The Whole Sockdrawer it comes back as Assumptions.
Gold has no yield as you acknowledge. Other investment classes (not just Property) have yield, as you acknowledge.
Gold is a wildly variable investment as opposed to cash and property (and in some cases currency) which rise and fall gradually.
And if you went to the bank and asked for a $500k loan to buy gold they would look at you like you have three heads and no brain where as you could make a case for a loan for shares or property base don yield.
So why all the debate about whether property or gold is a better investment?
Over time Gold is shit. You are better off as an investor to hold anything else in the long term. It is a short term speculative / defensive play at best.
So with the above clear facts in mind why is this topic getting so much airplay in a property forum? It is a waste of time.
Gold has no yield as you acknowledge. Other investment classes (not just Property) have yield, as you acknowledge.
Gold is a wildly variable investment as opposed to cash and property (and in some cases currency) which rise and fall gradually.
And if you went to the bank and asked for a $500k loan to buy gold they would look at you like you have three heads and no brain where as you could make a case for a loan for shares or property base don yield.
So why all the debate about whether property or gold is a better investment?
Over time Gold is shit. You are better off as an investor to hold anything else in the long term. It is a short term speculative / defensive play at best.
So with the above clear facts in mind why is this topic getting so much airplay in a property forum? It is a waste of time.
Thankyou
My use of gold is to diversify rather can concentrate the class,of assets i hold.
The fact that gold has no yield is valid, however that is not the reason people buy it.... obviously.
When people talk about property and its amazing yield compared to gold, well big deal, it is stating the obvious... however when pressed, they often omit the ongoing costs to deliver that rent.
Pointing that fact out is a valid comment, however some people wish to ignore the reality that it's not simply a matter of buying a property and then getting rent.. there are outgoings that need to be considered, and they are sometimes quite significant.
I have had IP's and am well aware of how much it costs over a decade to ensure the property remains attractive to tennants for a good rent... i don't understand the denial from some of the simple reality or their inability to accept that costs of having a property are adversly impacting yield (real or theoretical).
The property ages, the demands of modern tennants are not the same as those 50 years ago, try offering a 50 year old house that has not had renovations or extensions to the renters now and expect minima, returns. Try offering an old house that still does not have an indoor toilet to rent out and see what kind of rent you get.
After all, the ATO sets a depreciation of 2.5% over 40 years on new builds and renovations on IP's.. these properties are not going to last forever and the reality is that a build from the last 20 years may not not last as long as some from 100 years ago... give it 50 years, and many will simply be demolished to be rebuilt... that means a large cash injection.
Gold, with it's zero yield, does not require maintence, extensions, renovations or treatments to ensure it's inherent structure does not deteriorate... it can sit burried in the soil for 300 years and still be in a condition where it's value is not greatly altered from a freshly minted bar.
Gold is not a normal commodity coz it can be bought for financial safety. Gold is gold when some can buy it as a marked ingot etc from a Swiss bank....
The question is about understanding if gold has more to run and could increase in price?? 2 things in my brain.. * impact if IR rise costs of carrying gold does increase * how much investment funds buy & when will they liquidate? Do buy jewellery, still Los money but at least one can wear it! Currency wars tend to dent the savings, been there seen it.. Look at what the Cental banks do exactly or not do.... Is perceived value higher than actual value?
Wealth is somewhat relative really. Someone in the xx% of wealthiest people having invested in gold may not have maintained their piston relative to OTHERS who invested in other stuff.
Gold and RE has its good and bad. It's about dealing with the dips that matters. The right info, opportunities and acumen. Higher rewards do involve some risk taking sometimes. Wealth is what one can truly keep.***** It's Real Estate and naturals resources which includes gold, but also other stuff like silver, intellectual property etc..
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
Gold has no yield as you acknowledge. Other investment classes (not just Property) have yield, as you acknowledge.
Gold is a wildly variable investment as opposed to cash and property (and in some cases currency) which rise and fall gradually.
And if you went to the bank and asked for a $500k loan to buy gold they would look at you like you have three heads and no brain where as you could make a case for a loan for shares or property base don yield.
So why all the debate about whether property or gold is a better investment?
Over time Gold is shit. You are better off as an investor to hold anything else in the long term. It is a short term speculative / defensive play at best.
So with the above clear facts in mind why is this topic getting so much airplay in a property forum? It is a waste of time.
Quite a bit of irony there.
-- Banks are probably some of the biggest traders of gold out there, so while they might turn a blind eye to the suburbanite who wants a loan to buy gold or a jet ski, they are dabbling on a level beyond the comprehension of your narrow understanding.
-- The idea that gold is "shit" over time is a strange one. How a suburbanites defines "time" is out of my expertise, but anyway. Life is about aggregates and it wouldn't bother me to have the following component (but that's just me and the suburbanites have a different perception of performance).
The idea that gold is "shit" over time is a strange one. How a suburbanites defines "time" is out of my expertise, but anyway. Life is about aggregates and it wouldn't bother me to have the following component (but that's just me and the suburbanites have a different perception of performance).
The thing to remember about Gold is that its performance is for every single ounce of Gold on the planet.
It may not have performed well versus (say) Sydney property or (say) Arcadia (ACAD) but it has outperformed Port Hedland property and BHP shares.
Gold is one of the least speculative plays I know of. It doesn't matter where it came from, where it was bought. Gold is Gold.
Over time, it holds buying power, will never be worth zero.
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.
The thing to remember about Gold is that its performance is for every single ounce of Gold on the planet.
It may not have performed well versus (say) Sydney property or (say) Arcadia (ACAD) but it has outperformed Port Hedland property and BHP shares.
Gold is one of the least speculative plays I know of. It doesn't matter where it came from, where it was bought. Gold is Gold.
Over time, it holds buying power, will never be worth zero.
Yes, but it's a stupid argument. If an asset class outperforms another, say property over gold, it doesn't diminish the value of the "inferior" asset. There lies the problem with suburban thinking and why many are loaded to the gills with mortgage debt. They can't really see anything else and their critical thinking doesn't really involve a wider perspective. Similarly, that is why the mining crash is largely absent from the BBQ dialogue. They don't really have any idea of the implications.
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