Isn't it obvious that 'overpriced' is used on a term that is longer than a moment/day? Gold was $1900 on 22 august 2011 and 5 september 2011. Your 'present market forces' (actually some people making bad decisions for themselves and good decisions for others) brought that price. The subject is not the price mechanism. The subject is the present price relative to an average price over a period.
It's much more than 'no guarantee', silvers average price quadrupled over the past decade-now, and unless someone can show me industrial production silver demand rose that way too, industrial production was just a minor element. About gold: Net Government Sales (positive means it's [SUPPLY], negative means it's [DEMAND]) 1997 326 <- selling away higher prices when we don't want to buy 1998 363 1999 477 2000 479 2001 520 2002 547 2003 620 2004 479 2005 663 2006 370 2007 484 2008 236 2009 30 2010 77 2011 -455 <- buying away lower prices when we want to buy 2012 -544.1 2013 -368.6 Recycling 1997 631 1998 1108 1999 620 2000 619 2001 749 2002 872 2003 985 2004 878 2005 897 2006 1126 2007 956 2008 1217 2009 1672 <- recycling +100% (silver only +25%) probably due to gold stocks being way bigger than price ratio suggests. 2010 1653 2011 1611.9 2012 1590.8 2013 1371.4 ETFs and similar products 1997 0 1998 0 1999 0 2000 0 2001 0 2002 3 2003 39 2004 133 2005 208 2006 260 2007 253 2008 321 2009 617 2010 367.7 2011 154.0 2012 279.1 <- accumulated to 2634.8 2013 -880.8 <- 1/3 dumped, 2/3 to go (silver ETFs held their stock so 3/3 to go) Yes, silvers price is more volatile. More people making bad decisions, and others taking advantage of it, to then draining off the money away to for ex the gold market. That's why it is so important to be very cautious when deciding silver purchase moments. If people would, the price would stabilize more, and alot more money may stay.
Agreed 100%. I don't really hide mine from her, she just doesn't show any interest in my "coin collection" and I don't volunteer information. Seems like a win win
In a crash I think that gold will go down at first. Good to buy then. Thats the best option. But will it be available (I think so) Where to to hold the cash while waiting? Maybe the bank will no longer have it.
DCA so YES same date, every month some days I get more, some days I get less It all works out in the end
Yep - price is stable @ ~$1300USD, however as valuecreator alluded to - look for long term stability and realistic growth that is ANNUAL (sorry for the caps). Theses are single figure percentages @~5% (annual growth factor). Unless your are betting on another GFC - don't get your hopes up. (And IMO I don't think that wars of any kind other than total obliteration will effect the price of gold significantly). <disclaimer> IMO </disclaimer>
I started out only buying Pure gold Britannia's ( No Capitol Gains Tax ) then bought 1 2013 sovereign. Bad move I got interested in Mint marks and different designs. I now have quite a collection, with some rare coins as well. Earliest so far is an 1842 shield. And 1909 Canada 1856 Sydney half sov 1867 Sydney full sov 1989 4 coin proof set 1984 quinty PROOF etc,etc But.. I only buy old sovereign's generally (pre 1930). Dare I say it........... I don't trust the modern day ones, too copper looking for me So, I suppose I buy 'em for the numismatic value, as well as the gold content. And they look sweet when all laid out together (very rarely) But, I may well but a couple of Britannia's today, as no interesting sovs around ATM. I try not to buy coins other than UK issue, as they would incur CGT when sold, and also, maybe.......... induce collecting fever. I'm under no illusions with the sovs, some are common dates, bought for normal price. These would get sold if conditions/circumstances dictated. The rare ones I'll keep till I'm old and grey (2014 1/4 oz proof 25th anniversary Kangaroo anyone ???) Sort of a pension plan no bank/government can meddle with Everything I buy is as an investment. I own the coins, they don't own me.
Or 'locked' until further notice. I have family here that has 6000 euro locked since october 2011. There are 800.000 others in the same situation.
Yes, it's 'freezed'. Basically it was promoted as a savings account, with state guarantee / no risk. In reality, it was a shares-alike system, so called used only for 'local economy' and 'social' projects, and heavily promoted/benefitted by a political chain. However, during the 2008 crisis, they used the money 'behind the scenes' to rescue a system bank, one where State departments (including towns, villages) parked their money. Late 2011, the second EU crisis, the system bank still failed in the end, and the central planners (in the name of the local country ofc) took it over (read: bail it out), the very day of the year that the ability for the cooperative shares holders / account holders to withdraw their money, ended. In order to allow the local politician to get away with it (in the face of the public), the EU central planning level intervened, and 'suspend' (ofc they were happy to be forbidden) state guarantee. The EU legal case lasted a couple years and, very predictable, only some month after the countries local elections passed, the EU level forbade state guarantee. Yet, it's still 'not sure', according to local policians. That's what they do: putting things on the long term. By the time the story finally ends, most people will already have gotten used to the idea of having lost the money. And that was their very goal from the beginning.
Yes, but I like gold. I buy gold because I like buying gold and I like owning gold not for capital gains. If I have capital gains that's even better.
If I earned more I would buy more gold instead of silver. That said my favorite metal is platinum and if you ever worked with it you would know why. But I agree gold properly finished bullion coins and proofs are pretty awesome - especially those stuck by PM. But being pastey and all - metals of the white kind look better on me as far as jewelry is concerned.
