What effects will Putin’s War have on the price of gold?
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97 posts in this topic

On 3/9/2022 at 5:13 PM, RWB said:

But, how much have you lost is real value by holding a dead asset?

I think -- I HOPE -- most people consider it "disaster insurance" rather than an investment. 

Plus, you have the enjoyment factor if it is coins and numismatics. (thumbsu

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On 3/9/2022 at 5:13 PM, RWB said:

But, how much have you lost is real value by holding a dead asset?

Roger, I wish I new.  I have looked at the Gold a couple of times but since I bought that Silver I put it away and never looked at and never bought anymore.   IMO a waste of money.

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On 3/9/2022 at 6:36 PM, Alex in PA. said:

Roger, I wish I new.  I have looked at the Gold a couple of times but since I bought that Silver I put it away and never looked at and never bought anymore.   IMO a waste of money.

That's one reason why the silver I buy is usually a nice coin or commemorative.  I especially like the Saint-Gaudens National Park commemoratives.

I wish I could afford the gold, but the silver is a nice consolation prize. xD

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On 3/9/2022 at 5:13 PM, RWB said:

But, how much have you lost is real value by holding a dead asset?

It all depends on timing. When the music stops - would you rather own Russian paper, the rouble - or gold? It could happened to the dollar, although doubtful. If everything goes to pot - you can always use it as a projectile in your sling shot to get some dinner. But then again, you could burn your dollars to keep warm I guess.

 

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During the "gold standard" era, banks did not keep gold on-hand unless required to for reserves or customer convenience. It was, and remains, a dead asset that earns no interest and generates no profit except for speculation and chance. The $400 gold of 40 years ago is now valued at $2,000 - 5-times the dollar value. But, it will not purchase 5-times more -- it will actually purchase much less -- and thus has a negative return. The common "gold-for-food" scenario is a false analogy since small scale real world examples show that barter and trade of necessities quickly overcomes any slight assumed value of gold or any other thing that is not immediately useful.

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On 3/10/2022 at 10:01 AM, RWB said:

During the "gold standard" era, banks did not keep gold on-hand unless required to for reserves or customer convenience. It was, and remains, a dead asset that earns no interest and generates no profit except for speculation and chance. The $400 gold of 40 years ago is now valued at $2,000 - 5-times the dollar value. But, it will not purchase 5-times more -- it will actually purchase much less -- and thus has a negative return. The common "gold-for-food" scenario is a false analogy since small scale real world examples show that barter and trade of necessities quickly overcomes any slight assumed value of gold or any other thing that is not immediately useful.

Roger, I believe you could lend gold out for small rates of interest to those borrowing it for commerce or shorting purposes.

But yes, gold -- like almost all commodities -- does poorly as an investment because too many times it is boom-or-bust and rolling periods of investment returns are negative or lousy for many years.  Then you have a few glorious years like the 1970's and everybody gets sucked in again.

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On 3/10/2022 at 10:06 AM, GoldFinger1969 said:

Roger, I believe you could lend gold out for small rates of interest to those borrowing it for commerce or shorting purposes.

But yes, gold -- like almost all commodities -- does poorly as an investment because too many times it is boom-or-bust and rolling periods of investment returns are negative or lousy for many years.  Then you have a few glorious years like the 1970's and everybody gets sucked in again.

...owning gold does not equate to being an investment.....also having gold is not a "dead asset" thats a very narrow minded opinion n obviously a very uninformed one at that....ur interpretation as gold being more of a "disaster insurance" is well founded n a much better informed opinion...

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