Someone who bought only equities in late 2001 would've been severely hurt by 2005. For that time frame, owning gold would've seriously relieved their inflation burden. You might call turning €500 into €1000 small beer, but it's serious money for most people.
Nobody "needs" a hedge, anyway. Hedges are about risk appetites, mostly. Also, the fact that it's tax-free is also important.
Seriously though, at 10k I'd concentrate on building wealth before adjusting strategy to conserving wealth. Turning €500 to €1000 is like an extra weeks wages for most people in Ireland now - it is small beer, no matter how you look at it. And that's coming from someone who isn't wealthy by any stretch of the imagination.
It's the only thing that's valuable today that you know for absolute certain, will be valuable to people in 2107.
Seeing as gold has outperformed equities altogether this decade so far, I think the numbers don't stack up behind the "put it all on equities and don't put any gold in until you're very far over 10K".
Gold is likely to be the single common optimum performer behind the majority of portfolios of which it's a part.
I'd say there's no portfolio so small it should be gold-free. Even professional equity-pickers are powerless to beat its results with any consistency.
It's kind of inevitable, when money supply constantly outpaces equity markets.
Sure, if gold gets to €1000/oz before 2010, it'll probably be a good idea for people to reduce holdings. But right now, very few asset classes can touch it.
It's the only thing that's valuable today that you know for absolute certain, will be valuable to people in 2107.
Gold is an element.
A type of atom, not a type of molecule. To produce gold on demand, you'd need to be able to configure protons, neutrons and electrons into the precise configuration of gold.
They'll invent a time machine and cure death before that can be done.
What about Warren Buffett, Peter Lynch, Benjamin Graham, Philip Fisher and emmm ... oh yeah, every yahoo who bought any of the US indices in the late seventies ...
At what pace would the money supply have to grow so it didn't "outpace" equity markets?
If you include all the other professional stock-pickers, their average goes way down below gold's 2001-2005 performance (which is the time at issue, not 1975-present).
Equity markets grow at 7% annually on average. So for money supply not to outpace it, it'd have to be below that. But, in fact, money supply is growing at anything from 9% to 20% annually all over the world. Only in Japan is it low.
This creates an inevitable scenario where too much money will chase too few goods and services. This means that, as the Marxists used to say, that a structural tendency towards crisis exists in the global economy.
You still haven't answered the most important question - if you think gold will continue to outpace equities, why are you so keen to sell? Perhaps you're just trolling and I'm stupid for wasting time replying.
Rebate schemes work very profitably for all kinds of products, so why not gold?
Gold and silver can be bought for as little as €1/ $1/ £1 with Gold Money:
[broken link removed]
Also there are discussions with jewellers in Ireland in order to allow small investors/ savers to buy and sell small bars and coins on an incremental basis.
Spain's central bank just dumped 28 tons of gold on the market. It seems Spain is having some kind of difficulty making ends meet. Does anyone know about this?
Spain's central bank just dumped 28 tons of gold on the market.
In fairness the futures markets are bemoaning gold's performance. Oil and equities in the USA are soaring, and despite the continuing deficits, gold is a laggard.
The small-time investor has left the market.
As well he might, given the fact of the barriers to entry.
When Joe Nobody can wander in off the street and buy a 5 gram pure gold wafer for no more than 2% over spot, gold will soar again, but not until then.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?