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Relativity on the Gold Price
Topic Started: 24 Sep 2015, 05:23 PM (800 Views)
Terry
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It's about time for another gold thread. Everyone's favorite whipping boy. While we're of its "dismal" performance, it seems that BHP has fallen 54% since 2011.

What's a better investment since 2011? Gold or BHP? Or if I wanted to buy gold and BHP, whak kind of split what you recommend (assuming 100 "units" of each). Remember the following:

- BHP pays dividends. Gold doesn't.
- BHP is entrenched in our super framework. Gold isn't (mostly).
- Ownership of both can be had at the click of a button. Tax treatment on a gold ETF is somewhat different.
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Poontang
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I wouldn't buy gold.

I'd buy $500 worth of BDR over $500 over BHP.

Shares in Gold mining compnies is a leveraged play on the Gold price. AUssie Gold Mining Compnies have a further benefit with a falling dollar.

NST, BDR, EVN, NCM pay dividends.
There are some people who seem angry and continuously look for conflict.
Walk away, the battle they are fighting isn't with you, it's with themselves.

The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it.
The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
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Terry
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Poontang
24 Sep 2015, 06:04 PM
I wouldn't buy gold.

I'd buy $500 worth of BDR over $500 over BHP.

Shares in Gold mining compnies is a leveraged play on the Gold price. AUssie Gold Mining Compnies have a further benefit with a falling dollar.

NST, BDR, EVN, NCM pay dividends.
OK, so you wouldn't buy BHP or gold.
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Poontang
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Terry
24 Sep 2015, 06:18 PM
OK, so you wouldn't buy BHP or gold.
Not yet. It is getting close to a price worth considering for a longer term hold.
There are some people who seem angry and continuously look for conflict.
Walk away, the battle they are fighting isn't with you, it's with themselves.

The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it.
The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
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Terry
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Poontang
24 Sep 2015, 07:35 PM
Not yet. It is getting close to a price worth considering for a longer term hold.
BHP?
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Syd
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Terry
24 Sep 2015, 05:23 PM
What's a better investment since 2011? Gold or BHP?
Sydney houses?
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Jimbo
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Poontang
24 Sep 2015, 06:04 PM
Shares in Gold mining compnies is a leveraged play on the Gold price. AUssie Gold Mining Compnies have a further benefit with a falling dollar.
It depends on why you are buying Gold. If you are looking at a speculative play, buy Gold mining shares. Big upside/downside potential. Not my cup of tea though.

I buy Gold to insure my speculative plays and to do this, my Gold must be physical and in my possession.

If my Gold reduces in dollar value, my speculative plays will have risen to more than cover it. If my speculative plays fall flat on their arse, Gold will save my arse.

I have had the best of both worlds this year with everything going up (apart from the thing I sold last year, which was my Perth property).

Meh Twat is itching.
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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The Whole Truth
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It doesn't matter how many times you try to explain to a property bull the dynamics of gold investment as an inflation hedge and or fire insurance, they just don't get it. I think it is a fault in their education, where at hotel seminars all they heard was yields, property doubling in price every ten years, and you don't need anything else..
"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
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Jimbo
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The Whole Truth
25 Sep 2015, 07:41 AM
It doesn't matter how many times you try to explain to a property bull the dynamics of gold investment as an inflation hedge and or fire insurance, they just don't get it. I think it is a fault in their education, where at hotel seminars all they heard was yields, property doubling in price every ten years, and you don't need anything else..
Physical Gold is a hedge against everything that isn't real.

It is also a hedge against anything that is bolted down.

Portable, fungible, divisible.

Simple.
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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