I think he try to explain in terms of using gold or silver directly in the trading between community. Our current fiancial model is based on fiat paper printing money.

No doubt gold can be purchased either as paper asset or physical side. But its usage in world economy is rather limited towards perceive 'investment', 'hedge', 'store of value'. If we can somehow integrate gold/silver into daily trade between ppl..im sure the value can go much higjer. Right now the current fiat system used in our community is isolating this physical asset with such limited usage.

What is Gold or to be more specific what is physical Gold? It is a PRECIOUS metal. It has little industrial use but has huge respect and demand especially in Asia. It is historically a currency (Many people especially the rich people would accept Gold as payment). It serves as a hedge against inflation and so bad news is good news for Gold and for this reason the rich like to keep 10% of their wealth in physical Gold, just in case. It is limited in supply, estimated to be only 174,100 tons above ground and 52,000 tons below ground. If all the Gold above ground was melted down it would make a cube of only 20 meters high. It takes eight years to get it from ground to counter.

If you want to make money trading or investing in Gold then it is no different than wanting to make money trading/investing any other asset i.e. shares, futures, property, commodities, etc. and requires you to acquire the knowledge, tools, skills and experience, no short-cuts. Further, need focus, patience, etc, etc. that is why 5% of the world population hold 95% of the global wealth and as always there are exceptions.

Bros, bros, bros......can we all step backwards a bit and chill.....all suggestions and comments given and taken on good faith please.
We are not here to criticise, accuse, etc....just sharing of information from our points of view...there is no right no wrong here.
Who can predict the future ? We are not witches, wizards, medicine-man, etc.
Each of us can believe what he or she wants...no harm to anyone else.
 

Banks and the feds gonna do all they can to suppress the value of physical asset like gold or silver.

Dont know how long this money printing business backed by nothing tangible will last...

icemanfx.

That is precisely why Gold is viewed as the best form of money. Because it has no industrialusage.
Because it has very little usage.

The amount of available gold that are currently open is very limited actually.

Based on your theory, gold should be near zero if gold is just something which is aesthetic and has no real value. The fact that 1kg of gold right now could probably buy you a Honda says otherwise.
If gold was so unvaluable, why is that so. Why is it that people still put such a premium on something that just looks nice on the outside. But has no usage as all in other things.

Well, the amount of gold that can be mined is very limited. I believe market forces has priced that in.

So where do you think you want to invest your money in? Stock Market? Do you know the stock market has been tanking recently? So are you proposing that you put your money right now into "good" company and when a crash comes, can come anytime based on fundamentals not only of Malaysia but of the whole world in general, that you just tell yourself that hey I am after all "contributing" to the economy.

Oh put in bonds whereby governments around the world has been inflating like nobodies business.

Or in the over inflated property market that we have which will most likely crash together with the stock market.

You seem to have an understanding of booms and bust. But then your understanding of Gold and the history of Gold is very limited.
The fact that central banks around the world accumulates Gold shows that the top people still put a premium on Gold. If gold was so useless, why are central banks accumulating something which is useless? Are they stupid?

As an economics student, why dun you understand terms like gofo rates instead of just being under the cave?

I think you should maybe try to look at the world not based on just what your professor says.

As I said earlier.

If gold is so useless, why is it that 1kg of it can buy you a luxury car.
Why would central banks accumulate this if the fiat system can really isolate this physical asset.
But logic is obviously not your forte.

I agree with you. At the moment, gold does not look like an "inflation" hedge. Any idiot can tell you that based on the chart of recent years.
But then, what if gold is indeed an inflation hedge but because it is currently suppressed and that is why it does not reach it's true value.
What happens when the suppression stops?

Fiat paper money printing is obviously fantasy. I mean unless you think you can really create wealth from thin air. It goes against the logic of things. The thing is. You got so caught up with the stock market which is tanking right now and which is showing signs of crashing that you forget about fundamentals.

As long as people accept fiat money, there is a value.
Gold is not unlike gem stone or paintings, lack of industrial use but there are collectors willing to pay for it, hence a value. Gem stone could worth more than gold by weight and even more limited in supply.

Most central bankers are holding less and less gold as a reserve. As paper money is no longer backed by gold, holding gold is more for perception value.

Gold price has no relation to inflation but speculation.

As over 80% of gold mined is recycled, it has never been a shortage of gold.

Gold price is not been suppressed but abandoned by gold fund investors. If one realised how gold miners orchestrated the last gold bull run, will abstain from buying gold.

Collectors. Collectors who are spending hundreds of thousands of dollars buying gold bars as a collectors item.
Great.
Ok. To be honest you are really out of tune.

Yeah. Spending billions even trillions of dollars just for perception value.
Ok.

Obviously never read the news about the recent repatriation request by countries.

Well, you obviously never paid attention to the charts.

Talk is cheap. Just be an academic. You are not fit for the outside world.

Nuff said.

Those who bought gold in the last few years are mostly under water. Given gold is on the downward trend, buying gold in the near future is likely to loss value for a number of years.

Those who bought gold in the last few years are mostly under water. Given gold is on the downward trend, buying gold in the near future is likely to loss value for a number of years.

Those who "invested" in Gold and still holding it because they are expecting the price to recover would be suffering losses (maybe just paper loss for now) BUT professional Traders never suffer such losses, they would have shifted to the SHORT position and would be making money on the downside. They make money whether the market is Up or Down and usually breakeven, make small losses or small profits when the market moves sideways.

Bros, bros, bros......can we all step backwards a bit and chill.....all suggestions and comments given and taken on good faith please.
We are not here to criticise, accuse, etc....just sharing of information from our points of view...there is no right no wrong here.
Who can predict the future ? We are not witches, wizards, medicine-man, etc.
Each of us can believe what he or she wants...no harm to anyone else.
 

From the comments its obvious we are dealing with a hardcore goldbug, not investor that looks at all type of investment instrument comprehensively...

Those who "invested" in Gold and still holding it because they are expecting the price to recover would be suffering losses (maybe just paper loss for now) BUT professional Traders never suffer such losses, they would have shifted to the SHORT position and would be making money on the downside. They make money whether the market is Up or Down and usually breakeven, make small losses or small profits when the market moves sideways.

Traders by nature, do not see things long term.

Also, most traders lose money. I think that is a fact.

If gold was at 1900, I would never have recommanded people to buy.

It is also pretty easy to look at "expert's recommandation". The thing is, they never realize that those expert could be wrong.

The expert said that gold will go to 900 by end of this year. Did it happen?

It is really easy to "point out mistakes" just because short term price action happens to go the other way.

The thing is, those people who "point out mistakes" are the one who just keep quiet once things happen against them.

If gold went up, I am pretty sure Max and icemanfx will just keep their mouth shut and pretend nothing happen.

I am pro gold.

How you know that I do not consider other investments.

The thing is. You do not know what you are talking about so your only defense is to attack others.

I doubt you made that much in your investments as well.