May be they hope after banks fail and send fear to the market, by then gold price can become USD10,000.

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Added on March 9, 2012, 2:05 pmWho care 2000 years?
I only care the most 50-60 years, now about 30 years has passed, left half only.
The rest time frame, I am dead body, why care?
I don't care bank fail after 100 years, I don't care gold price is how much after 80 years as well.

I waited 30 years, yet purchasing power by owning gold is not restored.
Standard, what standard?
I cannot buy goods and foods out there using gold, I need to convert to fiat money first before I can buy.
People keep on saying own gold can maintain the buying power, but I cannot even after 30 years.
Another 30 years cannot restore the purchasing power, I am a dead man. Money, gold is useless to me by then.

This post has been edited by cherroy: Mar 9 2012, 02:05 PM

Who said I view gold is useless.
It is another investment that can make you money.

OK, sell my gold to you at Rm200/g. Want ar? valid until this month.
Then I use the money to buy McD share.

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Added on March 9, 2012, 2:37 pmFrankly speaking by that stage, life is more important.

This post has been edited by cherroy: Mar 9 2012, 02:37 PM

I listened to gurus-gurus said, gold can protect my wealth, gold can hedge you inflation, gold can let your buying power remain the same, gold is better the money etc., just like many posts here.

As said, I am a simple person, people said especially from gurus-gurus one, I listened loh. Then, 25 years pay the price for it.

Rm200/g non-negotiable.

This post has been edited by cherroy: Mar 9 2012, 03:23 PM

Last time, no internet, talk in kopitiam, in function loh.
Yes, weight the same, (this is teasing statement? ) gold cannot corrode like steel one, at least I have metallurgical knowledge a bit.

For sure increase in fiat value, even FD after 25 years also increase in fiat value.
But I cannot buying the same bowl of mee, purchasing power is not maintained or restored.

I don't know, people talked like gurus, I listened loh.
Just now change to internet talking only. No offence.

Even at 7.3% it is still poorer than stock market and just a notch higher than FD, as FD last time prior 1997 was always around 5-8% one.

How do I know I chase the rocket? I only know it is rocket after being burnt for 25 years, just like price shoot up from USD300 to USD1900, is it a rocket? or history repeat itself?
I don't know. But I know many will say this time is different due to money printing around etc.
Even though I know there are massive QE out there and inflation pose a serious threat, I still give an answer, I don't know. I had a painful experience of 25 years, don't tell me in this 25 years, there is no inflation for this 25 years period.

Only after 5-10 years later, we only know whether it is a rocket or not. I am just ordinary person, I am not predictor, nor a good investors, nor has lot of foresight like many gurus out there.

Even FD gave at least 5~7% interest. Expect zero increase in fiat money?

I don't want profit, I just demanded the same equivalent a bowl of mee, as many claim gold remain the same value, hedge you inflation one, aka hedge me the bowl of mee.

I can buy a bowl of mee with RM0.20~Rm0.50 back then, ok give the upper price to you, Rm0.50 which was equivalent to 0.01g of gold value (as posted USD20/gm so roughly Rm50/g) can buy you a bowl of mee.

Now is Rm5.00, with the same 0.01 g gold I had, you need to pay me RM500/g.

Ok deal, sold to you at Rm500/g.

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Added on March 9, 2012, 4:02 pmEven bought earlier at USD250, still return is far from promising and far from inflation hedge.

This post has been edited by cherroy: Mar 9 2012, 04:02 PM

I don't know, I was noob, I heard gurus said gold can protect my wealth, hedge me inflation, then I shouldn't worry if I holding gold according to gurus I spoke to.

A thing that being claimed that can protect my wealth, hedge me inflation, there was no reason for me to sell.
People talked, I listened. As said before, I am a simple person, not as sophisticated as others.

2 weeks?
It was neither go up nor down for 20 years+ prior before.

I don't know others, but for me, selling back genuine pure 999 gold bar is not a major issue, but storing of physical gold bar risk is my main consideration as risk, aka theft, accident/disaster event.

Bad economy, all things/commodities goes down including gold.

But due to the fact, many central banks willing to print money or QE to prop up the economy, so gold price react to the QE.

Gold price doesn't react to bad economy, or so called bad economy, gold price up, this theory is wrong in the first place.

Gold price surge mainly because QE, not because of bad economy.
It is bad economy that may drive QE.

Point 2/3 doesn't make sense.
USD can only drop, if Euro or the rest currency rise against USD.

A currency cannot drop alone. Currency exchange rate is in pair.

If Euro and US economy down, it is almost impossible for Asia countries economy still up.
Asia economy rely on US and overseas export market to keep it going.

Yes, Eastern countries are growing, economy size become bigger and bigger, and got opportunity, but it is far from overtaking or big shift.
Look at GDP size, average income per capital.
Eastern countries still long way to catch up.

Gold cannot yield you passive income, but property can, stock market can.
Stock market valuation is not that expensive especially in US, some good blue chips are trading in low teen PER and having dividend yield of 3-5%, but one has to be selective.

While gold is totally different breed of investment.
It is totally unpredictable especially in current situation.
Gold valuation is depended on people willingness to own gold, and this willingness is difficult to know, you know, human behaviour is hard to predict one.

Gold price has no basic fundamental backing like stock, properties. It all depended on willingness or people want to rush in or not, (yes, although) it largely depended on inflation and QE situation as well.
There is no such thing that current price of gold is cheap nor expensive. USD1500 can be both expensive and cheap, so does USD 10,000.

FD value also won't depreciate...
Either you make little interest or a lot of interest...

Safe heaven?
Gold bar being stolen time <--- safe heaven?

For those camp that criticise paper gold
Bank selling paper gold goes bankrupt <---- safe heaven?

Prior before financial crisis 97, FD interest was 7-8%.
This is not little, compounded every 7-8 years, your FD figure become double already.

A RM1200 FD during 80's now after 30+ years, with average 5% compounded, also become Rm5000.
FD also earn a lot, if one said gold bought RM1200, now worth Rm5000, mean earn a lot.

This post has been edited by cherroy: May 30 2012, 10:41 PM

Gold hedge against inflation?

Gold price was USD300-500 for almost 20 years while a cup of tea rise from Rm0.20 to RM1.00 in this period of time.

Physical gold price and paper gold pricing is the same.
If paper gold is not being defaulted, they are both the same.
If one said paper gold can't hedge against inflation, so does physical.

Gold does not?

Gold was USD 500 in the 80, now USD 1600.
But a cup of tea that cost RM0.30, now RM1.20
A bowl of mee, that cost RM0.50, now Rm4.00

How to explain this.

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Added on June 5, 2012, 5:03 pmA 500 FD in 80's after 30 plus year compunded, also become around 1600

This post has been edited by cherroy: Jun 5 2012, 05:03 PM

Money devalued?

A FD 500 also become 1600 after 30+ years, same gain with gold price!

Based on my example given is to point that gold can be a poor hedge against inflation.
Unless one bought gold in the early 2000, or prior before gold surged from USD300 level, after "hibernating for 20+ years.

If a 500 FD, now become 1600, while the price of item has higher inflation, it means devalue, so does gold.

Because Gold was 500 in the 80, now become 1600.

Please open a V5 topic if anyone wish to post further. Ty.