The AUD will only fall so much as the lower it goes the more support it gives to the economy and revenues of both businesses and the federal government
The only thing it does is make Aus labor more competitive because its takes a pay cut in relation to world markets.
There is no "the economy". Economy is specific to different entities.
The economy of importing goods gets harder. The economy of exporting goods get easier.
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
The problem with gold is that even if you are an expert on the metal, it not endower you with any additional ability to predict its future. Gold is a central bank issue. Personally don’t see it as an investment, rather I see it is a holder of wealth, much the same I see owning your house. Now-days people see houses as forms of investment, which is completely fictitious. In fact LT studies have found that houses have typically increased with wages, but not out-performed, which makes intuitive sense. But in life, one should have a house, maybe an investment property, antiques/art, equities, etc. Gold is definitely part of that mix.
In recent decades, gold has been strongly correlated with the general market – which has made me doubt its diversity value. I still believe it will make a drop toward $900/oz in the next market correction. If you are going to purchase – I would wait until then. Its not far away.
The problem with gold is that even if you are an expert on the metal, it not endower you with any additional ability to predict its future. Gold is a central bank issue. Personally don’t see it as an investment, rather I see it is a holder of wealth, much the same I see owning your house. Now-days people see houses as forms of investment, which is completely fictitious. In fact LT studies have found that houses have typically increased with wages, but not out-performed, which makes intuitive sense. But in life, one should have a house, maybe an investment property, antiques/art, equities, etc. Gold is definitely part of that mix.
In recent decades, gold has been strongly correlated with the general market – which has made me doubt its diversity value. I still believe it will make a drop toward $900/oz in the next market correction. If you are going to purchase – I would wait until then. Its not far away.
A house pays you income and you buy it with someone else's money. It's a vastly better investment than gold.
Well stan I for one own a substantial amount of physical gold, and have probably investigated the market more than half of the gold bears here put together, so let me give you some of my insights.
First of all you can pretty much ignore the analysis of the crowd trying to link gold to interest rates. Hey haven't a clue and are just parroting what the media touts. There is a far better correlation between the price of gold and the price of oil than between it and interest rates, that has been patently obvious since the first gold bubble of the 1970's.
But you have to ask yourself why people even bother with gold in these modern esoteric financial times. When you do ask you will discover that it is for the same reason they have for thousands of years, it is the safest place to store large amounts of money in a liquid form that by and large keeps pace with the inflation caused by the debt based money system we are forced to live under.
The $US as as has been pointed out is in its final days as the world reserve currency, and like the British Pound of its day, is losing the safe haven premium that has given it strength since the end of WWII. But like its predecessor it is not going down without a fight and that explains the volitility in it.
As I type this the australian price of gold is back to $1390, almost back to the $1400 price which I think is the average price it must have to adjust for the inflation that has occured since 2001 when the oil price began to rise rapidly, after 20 years of stability around $20 a barrel. Almost everything is derived from oil in our modern economy so when oil goes up, everything else does too.
Because oil is priced in US dollars the Americans can buy more for their buck when their currency is stronger, and as a consequence their gold price falls to match this strength. With our currency weakening against theirs our oil becomes more expensive and we will see this at the petrol pump in another couple of weeks if the trend continues. If our oil price goes up, so will our gold price to match the inflationary effects. It might lag, as it did when oil rose to $148 a barrel and triggered the gfc, but it will rise to cover, it always does.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
A house pays you income and you buy it with someone else's money. It's a vastly better investment than gold.
Sure is Tenant pays for everything and I get a handful of cash each week off of each property giving me a 20%+ return on my cash.
Gold returns ZERO
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
It often moves like that. Both up and down. Sometimes much more extreme on no news at all. It just looks big on the chart when there are a few days of trading in a tight range.
It often moves like that. Both up and down. Sometimes much more extreme on no news at all. It just looks big on the chart when there are a few days of trading in a tight range.
the Euro is also tanking, so something is happening.
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