• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Page 1 of 243 1 2 3 11 51 101 ... LastLast
Results 1 to 10 of 2424
  1. #1
    Join Date
    Apr 2008
    Location
    Christchurch, New Zealand
    Posts
    1,125

    Default Speculation & Gold

    Speculation (in a financial context) is the assumption of the risk of loss, in return for the uncertain possibility of a reward. Only if one may safely say that a particular position involves no risk may one say, strictly speaking, that such a position represents an "investment." Financial speculation involves the buying, holding, selling, and short-selling of stocks, bonds, commodities, currencies, collectibles, real estate, derivatives, or any valuable financial instrument to profit from fluctuations in its price as opposed to buying it for use or for income via methods such as dividends or interest. Speculation represents one of four market roles in Western financial markets, distinct from hedging, long- or short-term investing, and arbitrage.

  2. #2
    Join Date
    Jun 2006
    Location
    Hutt City
    Posts
    1,305

    Default

    Yes it's all speculation, but a bet on growth without cashflow is generally regarded as inherently more speculative.

    For those buying gold, are you expecting growth or are you just expecting less loss compared to other 'investments'?

  3. #3
    Join Date
    Apr 2008
    Location
    Christchurch, New Zealand
    Posts
    1,125

    Default

    I think there is a wide range of views on that. IMO the basic attitude is to avoid losing wealth due to local collapses. Second comes coping with inflation/deflation. Lastly comes the insurance against total world financial collapse.

  4. #4
    Join Date
    Nov 2007
    Posts
    1,067

    Default

    I'll admit my naivety upfront, but I just don't get why people value gold. You can't eat it, it doesn't shelter you, and why would you trade it for food if food is more important and you were the one who had it?
    Sure, gold doesn't perish, and you can make nice jewellery with it, but who the hell wants jewellery when you're looking for your next meal?

  5. #5
    Join Date
    Apr 2008
    Location
    Christchurch, New Zealand
    Posts
    1,125

    Default

    This is such a common statement/view.
    It is a fact that gold is valued, and has been for centuries. It has also been used as money for centuries.
    Do you dispute that ?

    IMO you should ask yourself "if those are the facts, any view I have that conflicts with that must be wrong, so I should find out why I am wrong".
    Reading these might help:

    FUNDAMENTAL REASONS TO OWN GOLD
    BY: JOHN EMBRY, CHIEF INVESTMENT STRATEGIST OF SPROTT ASSET MANAGEMENT INC. &
    SPROTT GOLD AND PRECIOUS MINERALS FUND.
    http://www.sprott.com/pdf/reasons_to_own_gold.pdf

    This is a HUGE read for anyone interested in gold.
    http://www.gata.org/files/RedburnPartnersGoldReport_11-12-2007.pdf

    What's amazing is that not that long ago, people generally understood the value and use of gold. What's amazing is how that has been removed from the general learning process. It's almost like a whole generation 'forgetting' about wearing clothes, and not seeing the point.

  6. #6
    Join Date
    Nov 2007
    Posts
    1,067

    Default

    No I don't dispute that it has been used as money for centuries, nor that it is valued.
    Yes those are facts, and I don't dispute them, but that doesn't make my or anyone's point of view wrong, it just means I and others value other things more highly.
    My point is really that if there was a massive World event close to an armaggedon (or whatever) or a total World financial melt down, and I had an orchard of fruit, a stable of animals producing milk and meat, and that same stable providing shelter, I wouldn't give a rats arse about your truck-load of gold.

  7. #7
    Join Date
    Apr 2008
    Location
    Christchurch, New Zealand
    Posts
    1,125

    Default

    Quote Originally Posted by outspoken View Post
    My point is really that if there was a massive World event close to an armaggedon (or whatever) or a total World financial melt down, and I had an orchard of fruit, a stable of animals producing milk and meat, and that same stable providing shelter, I wouldn't give a rats arse about your truck-load of gold.

    I don't disagree with your sentiment. I'm not suggesting gold/silver are the only forms of safe haven. Resources such as you describe are valuable/useful.

    Don't forget the gun and amo to protect it though

  8. #8
    Join Date
    Nov 2007
    Posts
    1,067

    Default

    Good old 2nd ammendment (I think?) stuff! I like it!
    As for my Garden of Eden sentiment, I read one of your links and agree.
    We're hardly at a World Armageddon event, or total World financial melt-down stage. Well, not yet anyway that I know about.

  9. #9
    Join Date
    Jan 2005
    Posts
    1,129

    Default

    Quote Originally Posted by Steve Netwriter View Post
    I don't disagree with your sentiment. I'm not suggesting gold/silver are the only forms of safe haven. Resources such as you describe are valuable/useful.

    Don't forget the gun and amo to protect it though
    If you need guns to protect your gold then it's worthless.
    Gold is only valuable when things are running smoothly.
    Which defeats the purpose of holding gold?

    An idle question which just occurred to me:
    Is the price of gold manipulated?
    Can the 'evil empire' control the price?
    If so, isn't it risky to hold gold?

  10. #10
    Join Date
    Apr 2008
    Location
    Christchurch, New Zealand
    Posts
    1,125

    Default

    Quote Originally Posted by tricky View Post
    If you need guns to protect your gold then it's worthless.
    Gold is only valuable when things are running smoothly.
    Which defeats the purpose of holding gold?
    I was talking about "and I had an orchard of fruit, a stable of animals producing milk and meat, and that same stable providing shelter".

    Do you think someone with no food will let you just keep your farm/orchard ?


 

Thread Information

Users Browsing this Thread

There are currently 2 users browsing this thread. (0 members and 2 guests)

Similar Threads

  1. Speculation!!
    By nicsa122 in forum Property Investment (NZ)
    Replies: 2
    Last Post: 17-02-2016, 04:27 PM
  2. We need more property speculation
    By elguapo in forum Property Investment (NZ)
    Replies: 3
    Last Post: 16-10-2013, 05:41 PM
  3. Property Speculation tax
    By flyernzl in forum Finance, legal and tax (NZ)
    Replies: 17
    Last Post: 04-09-2013, 11:14 AM
  4. Replies: 2
    Last Post: 27-09-2012, 07:01 PM
  5. Speculation & Gold
    By Steve Netwriter in forum General (NZ)
    Replies: 2307
    Last Post: 02-06-2012, 01:44 PM
  6. Gold Bug! The return of gold fever
    By muppet in forum Other Investments
    Replies: 0
    Last Post: 18-11-2007, 12:37 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •