Goldbugs... what will you do with your gold? What's the point of holding gold?; Will you eventually convert it into real money, or just hoard it for ever?
it's funny Shadow, a common strategy held by metal bugs up until recently was to buy gold and silver then exchange it for property when the inevitable crash occurred. Of course the opposite happened and many people (myself included) got screwed. (FWIW i didn't believe house prices would crash but i did expect metals outperform them for a while)
robert kiyosaki (among many others) was quite vocal about supporting this theory
The goldbugs here seem to think it's always a good time to buy gold.
You never hear them saying it's a good time to sell
I could say exactly the same thing about property bugs.
From a personal perspective, I hold a little gold. I have held it for quite a while as a hedge against fiat inflation, and I have only lost around 8% on my investment in gold - irrelevant in the scope of the portfolio. At this stage, i'll be selling into AUD currency when it hits $2,000 AUD, which I believe is realistic within the next 5 years.
I could say exactly the same thing about property bugs.
No you couldn't. Property owners gain utility from their investment - they get somewhere to live without having to pay rent. Property investors get rental income from their investment - yield (a strange concept to PM investors I know!).
Quote:
From a personal perspective, I hold a little gold. I have held it for quite a while as a hedge against fiat inflation, and I have only lost around 8% on my investment in gold - irrelevant in the scope of the portfolio. At this stage, i'll be selling into AUD currency when it hits $2,000 AUD, which I believe is realistic within the next 5 years.
Fair enough - but losing 8% on your "inflation hedge" during a period when CPI increased by +??% doesn't sound like a particularly effective inflation hedge outcome to me?
For Aussie property bears, "denial", is not just a long river in North Africa.....
I could say exactly the same thing about property bugs.
No, as Sydneyite mentioned, and as I mentioned in the OP, property provides an income source (which rises every year), and the capital gains can be leveraged without selling.
Quote:
From a personal perspective, I hold a little gold. I have held it for quite a while as a hedge against fiat inflation, and I have only lost around 8% on my investment in gold - irrelevant in the scope of the portfolio. At this stage, i'll be selling into AUD currency when it hits $2,000 AUD, which I believe is realistic within the next 5 years.
Why would you sell when it reaches $2000? Surely it would still provide the same hedge against inflation (the reason you bought it) if/when it hits $2000?
No you couldn't. Property owners gain utility from their investment - they get somewhere to live without having to pay rent. Property investors get rental income from their investment - yield (a strange concept to PM investors I know!).
Try this quote on for size:
You never hear them saying it's a good time to sell... their gold spruiker mentors like Kris Sayce never advocate selling - Shadow on GOLD
You never hear them saying it's a good time to sell... their property spruiker mentors like Andrew Wilson never advocate selling - The Doctor on PROPERTY
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Fair enough - but losing 8% on your "inflation hedge" during a period when CPI increased by +??% doesn't sound like a particularly effective inflation hedge outcome to me?
As of this exact moment, it hasn't been effective for me personally. For others, it has been great. Its a longer term investment, a firm conclusion on it's effectiveness has yet to be reached in my regard.
The Indian people have lost 30% of their global purchasing power since March 2013 (though those who swapped their paper wealth to gold have seen their purchasing power rise 6% in Rupee terms).
this is just my experience and others made money on the trade, but take a close look at a silver chart and notice 2011. I took part and it was very exciting. I really enjoyed chasing it all the way to the top - it was all happening so quickly.
I believe my final significant purchase was less than 24 hours before the turn around (no bullshit).
God hates me, right?
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
this is just my experience and others made money on the trade, but take a close look at a silver chart and notice 2011. I took part and it was very exciting. I really enjoyed chasing it all the way to the top - it was all happening so quickly.
I believe my final significant purchase was less than 24 hours before the turn around (no bullshit).
God hates me, right?
Oooooohhh Poor Mel, that's soo shitty..!!!
Yes take it up with god.... ( I certainly have some issues myself when Im pushing up the daisies)..... Just remember.... Fools are people, who think they have no need to diversify their investments, who then get to retirement age & then complain the pensions not enough....
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.
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
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