If I take the story change from Year 2001 to 2011, then its different story....

2001 ,its about $ 280,
2002 , its about $330
2011, (NOW) its about $ 1600. (AVERAGE)

It increase about 550 % in more than 10 years.
Inflation presumely 60% ? in these 10 years ??

Certainly, GOLD have little movement during the 1980s to 2001. (overall)

Hi,

This is right & wrong...

gold has been a backbone of monetory system for thousands of years...
but yes, it is not since 1971.

Cheers...

exactly... when i first jump into gold, i never really study the history....

then i start to look at the trend over the years..and i noticed that back in 1980 to 2002, just as your example, those who invest in gold never really get a good return...

it is the past few years only when we see the gold price soaring and shooting up... so ... those who never experienced the old days, they won't know that buying gold does not necessary mean can get better return or hedge against inflation...

what if we return back to the scenario in those years when the price of gold remains flat or increase slowly?

yeah...it hardly go down in price...but if the price rise steadily and slowly.... then????

Are you refering to the the 1980 peak?

Are you saying now is equivalent to that peak?

If not, then its a flawed comparion.

I don't know what is peak or bottom. I never know, I am not a good predictor.
I don't know how gold price will be in the future, can be USD 5000, can be USD2000, I am not good in predict those.

But during late 70's, 1980 or early 80's, people also said the same thing, invest gold will protect your money value.

So there were people follow what being said (whether it was me or not, never mind, as this is not the point), now they feel being cheated by this statement for 20+ years or even after 20+ years until now.
Because the last time 0.0002 oz that can buy, now need 0.0008 oz already, where is the value protection or preservation.

Exactly....thats why its a flawed comparison....

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Added on November 29, 2011, 3:07 pmIn 2005, a mee soup cost me .00175 oz of gold. Now its .00127 oz of gold.....so value has been preserved between those years

This post has been edited by prophetjul: Nov 29 2011, 03:07 PM

Conclusion
Gold is a value preservation is a flawed statement to start with.

Gold is selectively preserve value depended on your entry point.
The timing and level of entry is important to determine whether it can protect your value or not, so it is an investment class asset as same as other investment class/asset/object like property, stock etc.

I think what cherroy trying to say is, we should feel sad when we see the "return of investment" from gold because of the depreciation of paper money.

Yes and No....which you answered in your next breath!

In your past statement, you mentioned gold has no intrinsic value,no returns?

You are right...an oz of gold will FOREVER be an oz of gold; no more, no less. So essentially, its not an investment.
WHICH brings us back to value preservation........

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Added on November 29, 2011, 3:31 pmWhy should we feel sad?
Afterall paper money(fiat) is a manmade inflationary TOOL used by the powers that be to screw the honest public.

This post has been edited by prophetjul: Nov 29 2011, 03:32 PM

Yes, gold is just a shinning yellow metal that is scarce.
It has no fundamental, no valuation point, you cannot value a gold what price should be. It depends on willingness to buy or sell only.

So you own gold because you want to see the shinning yellow reflection of the metal?
Aka you want to own 1kg of gold for the sake want to have 1kg of the yellow metal?
Preserve the 1kg?

You don't care about gold value?
So why inflation hedge statement, can protect your wealth statement come out?
This is money term already.

righto but not many realize that when they venture into precious metal, they feel the return is drop from the sky.

many people here wants to invest in precious metal for those gain.

What I want to highlight is don't be naive to think by investing in gold will preserve your money value or a wealth preserve.
Or don't need to worry about inflation or an inflation hedger.
Yes, it can make even more money for you, just like period from 2004-2011, exceed inflation hedge.
But it can fail you totally in inflation hedge as well.

I had seen many this kind of statement gold protect value, gold is inflation hedge etc.

In reality, it is just another investment class asset, your entry point and exit point is the criteria that dictate whether money is preserved or can hedge the inflation or not.

It can make even more money for you, it can fail to beat inflation.
It never "preserve".
If it really preserve, then 1980-2011 lose of value shouldn't happen at all.

Hi potenza10, thanks for your reply... but I have a doubt here... how do I ensure gold bar from Public Gold is really 99.99%? I believe this Public Gold has nothing to do with Public Bank?

If you say its has no fundamentals, then why call it an investment?
Would you invest in a one oz granite stone?

Did i say i dont care about gold value?
i said an oz is an oz....isnt that 'value'?

Dont understand yer last bit............

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Added on November 29, 2011, 3:47 pmMaybe those are wrong reasons?

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Added on November 29, 2011, 3:50 pmCan you define investment class when you mention "it has NO FUNDAMENTALS"?
Are Tupils "investment class" assets?

Whattabout 1900 to 2011?

This post has been edited by prophetjul: Nov 29 2011, 03:50 PM

Who said cannot invest into something that has no fundamental?

Value is money term like USDxxx.xx.
1kg of gold is 1kg, just like 1kg of stone is 1kg. There is no "value" in it. Until we define or someone willing to pay for it in money term.

Undeniable, 99.99% of people own gold because of reason?
Because of money issue circulating us.
We buy gold using money, if said the gold cannot converted to money after you buy with the money, do you willing to buy gold?
If the answer is yes, then I agreed on your statement you are willing to own the gold, and 1oz of gold is value at 1oz, but not RM170.

Yes, anything got buyer afterwards, that you can sell at profit, is considered an investment. At least my noob definition.
Investment - something you can make money from it.

Probably the fundamental I can find from gold, is about gold perception by everyone, aka always got people want to buy it.
Fundamental of gold - got people to buy it, just we don't know what price they are willing to pay in the future.

These 2 days, gold price increase .....

Is this a bullish trend beginning ?

Or overall is still bearish ?

thanks

all public gold products come with assayer certificate...same as well with other brands.

Is there any site that show a history of gold prices buy/sell by our locals bank; not the gold price as commodities.

I want to check how every local bank valued their gold compare to spot price. Thank you.

Try search goldabout.blogspot or something like that.i'd bookmarked the site in my lappy.but now lying in my bed, online using phone only.cannot recall the exact url...

just started investment on gold. well, will be keep following this thread from now onward. =D

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Added on November 30, 2011, 1:17 ambtw, is MBB's kijang emas a worthy investment? just curious about the difference between an actual gold and paper gold. did google around but yet, still wish to hear comments from guys around here.

This post has been edited by billy_overheat: Nov 30 2011, 01:17 AM