Guys..this is GOLD INVESTMENT thread.
Please keep to topic.

Sorry for OT. Back to gold investment related issue. Ty.

Believe the dealer need to pay his supplier in fiat money, the dealer need to exchange/sell his gold received for fiat money. Who is absorbing this cost, the dealer or buyer?

If the car is priced in cash equivalent, if compare current price with march 2014, number of 100g, pamp gold needed to buy the car remain the same or fluctuate?

it will fluctuate with the price of gold.. gold price go up, less grams needed to buy the car... usually seller give cash back called "petrol money" each month for a certain period
at least, with the right technical analysis, you can buy gold near its lowest and later when price bounce back, buy goods with your gold which is technically cheaper
kinda like bitcoin.. hehe but heavy

This post has been edited by Sham903n: Dec 12 2014, 11:28 AM

If a person has the right technical analysis, he could make thousands in a week or day.

IPhone which is supposed to be the start of the smart phone revolution was first released on Jun 2007
http://en.wikipedia.org/wiki/History_of_the_iPhone

Of course there are other smart phones around but then let's accept it, they are not a threat to Nokia.

The thing is, even though the iphone was release during that time, it would still take I think around 1-2 years to take steam.
Nokia was selling cheap phones even before 2008- 2009. You can get a very cheap phone for aroud RM200 plus. Let's face it. Even in 2008, iphone probably isn't even a threat to Nokia. Iphone was probably viewed as something that is cool at that time but then only geeks would buy it. Bought 1 phone with the simplest spec for 240 I think. And most people would still be buying Nokia rather then other china brands even if the other china brands are selling for say RM150 because of brand recognision.

Smart Phones did not cause Nokia phones to decrease in price because their price range is totally different. An iphone probably cost around RM2k plus. A ordinary but good Nokia phone cost around RM400-500 plus. So how can you even say that smart phone drove the price of Nokia down?

Companies espacially those that are of the size of Nokia do not sell phones at a loss. The reason why they lose out is because normal mobile phones are not popular. They could still generate a profit if they sell their phones at RM200 if say there is huge demand. The fact is that there is no more demand because people are now buying smart phones. Of course their operation is going to take a hit because of that. You still do not get it do you. It's not deflation that cause Nokia to go downhill, it's demand.

You are again twisting my words. I never said Nokia was always profitable. I said they could still make a profit selling a cheap phone. Obviously they took a hit because of the smart phone revolution. Everyone knows that. But to say that they will not generate a profit just because phones are getting cheaper is total nonsense. Besides, they could still sell higher spec phones at a higher price.

Now you call iphone the answer towards mother of deflation. Are you so desperate? The fact of the matter is, the cost of smart phones is decreasing. Even prior to XiaoMi, Samsung is able to sell a phone with better specs for around RM1200plus. Smart Phones are getting cheaper and cheaper. That is the trend if you take iphone out of the picture which most people pay a premium for not because it's the better phone but because of it's brand. The general trend for smart phone is that they are getting cheaper though. Just because of iphone, you generalize it to the entire smart phone industry. Of course common sense will tell you that if iphone can still remain hot selling at high price, there is very little incentive in the first place to lower the price. But then, if people do not buy iphone because of the brand, you can be pretty sure that the price of iphone will be coming down.

Your assumption here is that people just keep their wealth and do not spend it. The thing is that, people generally do not do that. When you are rich, you still buy things and continue to invest in things. Why can't a person be rich in a gold based currency system? If that person can invent something that everyone needs, people will still buy products from this person. Isn't that what free market is? Selling something that people need and profiting from this? You obviously know nothing about free market economics. If say I am able to come out with an idea and need funding, wouldn't someone who is rich put money into my idea? Why are you assuming that rich people will never spend what they have saved? But I really do not want to discuss this further because it seems your basic understanding of things is lacking.

The thing is, I can tell you are really desperate. So desperate that you are starting to make basic grammer mistakes. You are just trying to justify yourself using whatever means possible.

This post has been edited by sylar111: Dec 12 2014, 12:48 PM

With that many stars on your avatar. I'm guessing you don't need to know the difference between GOLD thread and IPHONE thread.

yeap, bottom line is, there is people taking gold as payment for goods.

There are always some people taking alternative form of payment e.g. bitcoin, paypal and gold is only one of them.

Gold set for biggest weekly rise in 6 months as stocks, dollar slip

Gold is up 3 percent so far this week. Weakness in stocks has prompted some investors to buy the metal as an alternative asset, while a drop in the U.S. unit made dollar-priced bullion cheaper for other currency holders.

"Gold and silver have both had a very good week, going against the trend seen elsewhere," Saxo Bank's head of commodity research Ole Hansen said. "We have reached levels which short sellers have been attracted to in the past and this may slow the positive momentum that has emerged during the past week."

"Overall there is a feeling out there that traders are now going defensive on their positions and this is weakening the dollar, thereby adding some support to precious metals."

"The longer gold holds above $1,200, the more it may attract fresh buying and gold ETFs may begin to build," HSBC analysts said in a note.

if you ask me, its about to make a big move. Which way? God knows, but I have an idea..

Maybank Gold Investment Account
DATE SELLING (RM/g) BUYING (RM/g)
15-Dec-14 139.56 133.77
Last update : 15-Dec-14 at 09:46:35 AM

"Yes, look at those antique stuff, worth millions a single piece."
You're talking about numismatics. Our subject here is gold as "store of value".

Your own definition of money is rather "weak" I believe. No wonder besi buruk and pebbles can be a store of value. Fine, let's not get sidetrack or be sidetracked further.



Well, that's the theory, ideally by proponents of Keynesian. "Debt can be solved by inflation"? Really?No wonder you're okay with inflation. You even did the hard work of illustrating debt raising by generations which clearly shows how the worth of the currency is being shaved off gradually and yet it's ok? OK, I guess I'll stop here.

p/s: You might want to look at gold from a monetarist perspective. Check out Alan Greenspan's essay about gold and economy.

This post has been edited by sinbad2k: Dec 18 2014, 02:03 AM

So can buy kah, or wait 1 more years?

This is between me and cherroy.
Understanding of Gold involves hard economics.

So yes, it's relevant.

Bro, i agree with you that gold back currency would limited growth etc etc...

But it seems there are no solutions for inflation/deflation/hyperinflation/unlimited printing money/unlimited debt that could both drive the growth and ppl have confident on the money. these events repeated many many times thru out the history and we still come back to original and repeat the same thing.

I believe Japan, EU and USA have tried numerous attempt to resolve the current issues, it seems shaky and unconvinced. now even have -ve interest rate for depositors money.

I really have no idea what coming next and how this would affect us in the future. I have no idea the coming crisis.... what is the best asset class...... one of the asset i can think of are commodities (sugar, bread, oil, pm etc)

I believe many of us concern about the current issues

Please enlighten me

This post has been edited by Curious Guy: Dec 20 2014, 09:34 AM

Fiscal and monetary policy take time to be effected. u.s economy is already out of the wood, will be followed by e.u. japan will depend on extend of reform. china is following u.s, so will perform well.

many people are blinded by greed, there will always be some bull run (e.g. kv property) ended in a crash i.e. financial crisis from time to time. as long as one invest based on fundamental and not joining the herd should be safe.

To bet on gold, on my end the most important statistic i would look for would be:

1) How many still believe in it as a store of value (laymen)
2) Is the amount of believer in an upward rising trend or downward trend

I'm too lazy to search for it, but my general understanding is older generation tend to favour gold, predicting that the QE will further make gold appreciate in value, while the newer generation with their fancy education will come to conclusion that gold is not a good store of value. iPhone does it better.

But bulk of money still with the boomers, so short/mid term Gold will go up, while long term it may be drop by many as a store of value. Pardon for the noob analysis, but somehow simple facts make more sense to me than complicated theories.

Also to note, while the Russian economy is facing an evident collapsed in currency, i did not notice a huge spiked in gold, rather people are clearing furniture, staples good, iPads etc. So the only thing that can test the gold peak again would be a global crisis with USD facing extinction scenario ?