what is better gold/silver or stock or property? For me I choose silver and gold. long time back.
OK lah. We need some specific result.
Point 1.
Cherroy.
Can you give us some local stocks where if we have brought in any year
2000 - 2009. it beats our investment in gold. Gold average about 12.5% / per annum since 2001.
2001 :- gold is USD260/- Kijang emas about RM1,100/oz . Now it is RM5000/- approx 5x.
2001 :- Double storey terrace house in KL, 22 x 75 :- RM250K.
Now about RM500K. 2x increase. So gold beat property.
Let said you pay by leverage 5x1, zero down deposit, maybe you be able to beat the gold after deducting the legal fee, stamp duty etc but gold does not need to do lot of work one just buy and store in safe box. Totally passive income from inflation point of view.
The point I want to make is, if you see growth from inflation point of view or from actual growth point of view.
With one exception, if you have brought during 1998 crash then I think U R millionaire lah. this one has to be excluded because it's an argument from extreme (best case scenario).
Point 2. Cherroy.
Who is as smart as you that they managed to brought all the stock you have brought in Point 1.
Point 3.
Ya, oil company make lot of money but the money cannot buy back the oil they sold and burnt.
there is a book . "The end of growth" and "Peak Everything" by richard heinberg.
Point 4. oil price
High oil price will lead to higher property price in some sense
a) Construction is more expensive. Big truck lorry need lot of diesel.
b) material need oil to construct, transport, maintain.
=> Higher property price.
but in long run it may lead to lower property prices as there is no oil to sustain such cities of concrete.
only certain properties will be super valuable and the rest will be of value much much less than it's actual construction cost.
QUOTE(cherroy @ Jul 18 2011, 01:13 AM)
Inflation will spark up the stock market as well. Company make more profit, eventually higher share price.
A USD150 oil price definitely will make the oil company make tons of profit.
So does properties, if properties price sky-rocketing, properties stocks also booming.
Same with other commodities.
Inflation will make money value become smaller, it won't become zero.
Zero?
Add a few more zero at the back may be.
We are talking about interest or yield, not capital appreciation.
Be it paper gold or physical gold, both are not going to yield you any interest.
A 100g gold won't become 101g of gold.
End of story.
Price is more stable for silver? LOL, see the graph how the price spike to 50 then down to 34, then shoot up again, it is very volatile. Volatile comes from where?
Only highly speculated stuff has high volatility.
And this topic is about gold, we have existing topic on silver if want to talk about silver.
This post has been edited by GoldChan: Jul 18 2011, 11:19 AM