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  1. #21
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    Excuse my ignorance, but if the price of gold has dropped now, can't it drop again? This downfall in price is hardly an aberration, so what is to say that gold is secure as an investment? More secure than money deposits, yes, but it isn't exactly invulnerable though, is it?

  2. #22
    Lesser Hivemind Node fiddlesticks's Avatar
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    Quote Originally Posted by Shane View Post
    Excuse my ignorance, but if the price of gold has dropped now, can't it drop again? This downfall in price is hardly an aberration, so what is to say that gold is secure as an investment?
    Nothing. In fact, I feel confident in saying that the gold price will drop again, it's just that no one exactly knows when.

    Malawi has the most sound advice in this thread. Always diversify your portfolio. Putting all your money in one investment is a very bad idea, unless it's one of the handful of investments that can be considered more or less completely secure (government bonds from a first-world country for instance). Those tend to give a low rate of return, however.

  3. #23
    Secondary Hivemind Nexus Jesus_Phish's Avatar
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    Or do what I do.

    Enjoy life and don't try worry about making a tonne of money.

    If we're all lucky we'll end up in Mad Max scenarios anyway.
    "Halo is designed to make the player think "I look like that, I am macho sitting in my undies with my xbox""

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  4. #24
    Secondary Hivemind Nexus Heliocentric's Avatar
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    Quote Originally Posted by Jesus_Phish View Post
    If we're all lucky we'll end up in Mad Max scenarios anyway.
    I'm not sure if we share definitions of luck.
    I'm failing to writing a blog, specifically about playing games the wrong way
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  5. #25
    Secondary Hivemind Nexus Nalano's Avatar
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    Quote Originally Posted by Heliocentric View Post
    I'm not sure if we share definitions of luck.
    I think he's talking muscle cars and studded leather - and, god willing, Tina Turner in a chainmail evening dress - not so much the whole Mel Gibson thing.
    Nalano H. Wildmoon
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  6. #26
    Lesser Hivemind Node Timofee's Avatar
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    Quote Originally Posted by Colonel J View Post
    This. To demonstrate, here's a graph of the price of oil measured in grams of gold and in currencies from 1950 to 2009

    Attachment 3039

    I grabbed that from an excellent essay in the The Idler magazine a few years ago on why gold is the only worthwhile investment of the free man. I googled and what do you know, the author has reprinted it online. It's worth your time.
    Thanks for the link. I'd say he makes some interesting points at the beginning and then traipses off into cloud cuckoo land. He also demonstrates a deeply disturbing fetish for gold.

    I was also given to understand that actually over the coming years the price of gold will change because electronics consumption of gold is steadily increasing while our the effort required to recycle/reclaim it is prohibitive, so essentially the gold stocks will slowly dwindle.

  7. #27
    Secondary Hivemind Nexus sabrage's Avatar
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    0:30-0:50

  8. #28
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    I always wondered about those Cash for Gold shops that have been popping up everywhere in the last few years. After all, why would people who can afford lots of gold want to sell it now? But then it occurred to me, they need the cash because they spent their money on gold.

  9. #29
    Secondary Hivemind Nexus Lukasz's Avatar
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    Value of gold dropping is a good thing... when it skyrockets then we have an issue. Currencies are getting stronger especially USD which was undervalued for past four years in my opinion.

    squirrel:
    "All those paper money printers are printing banknotes and pumping them into our economies like hell, diluting the value of our hard-earned currency"
    I believe you are referring to inflation which you once pointed that you don't fully understand, you refer to massive printing of worthless money? Am I right?
    That would result in INCREASE of the price of the gold.

    Furthermore: price of gold fluctuates based on demand and supply of the ore as well as stability of world economy and growth in production.
    You did not check price of gold from just few years ago did you? It had been rising. Current price is not lower than the price in 2009
    over five years ago before the recession the price of gold was worth a third what is now. Gold is overvalued at the moment and price is slowly going back to proper place

    http://goldprice.org/

    Quote Originally Posted by BjolkeDeBjeer View Post
    I always wondered about those Cash for Gold shops that have been popping up everywhere in the last few years. After all, why would people who can afford lots of gold want to sell it now? But then it occurred to me, they need the cash because they spent their money on gold.
    They were expecting the gold price to rise even higher and because they were buying the gold price did rise. People saw lost in confidence in American banks sans they decided to buy gold as investment instead of locking their wealth in EUR or USD. Prices almost tripled in five years and people decided to simply sale it knowing that prices won't rise further.
    First:
    less gold on market
    higher prices
    Now
    more gold on market
    lower prices

    simple supply/demand relation


    Fun fact: according to the article on ARS gold particles are used in home pregnancies tests.
    Last edited by Lukasz; 16-04-2013 at 10:24 AM.

  10. #30
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  11. #31
    Secondary Hivemind Nexus squirrel's Avatar
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    Quote Originally Posted by Lukasz View Post
    I believe you are referring to inflation which you once pointed that you don't fully understand, you refer to massive printing of worthless money? Am I right?
    That would result in INCREASE of the price of the gold.
    If gold traders are honest, then you are right. Problem is most are trading on extremely leveraged paper gold. Price of gold is no longer reflecting the true demand/supply.

    I am angered, and then saddened (tonight's rebound is nothing. Old story, small rebound then deep fall, than small rebound and then deeper fall, this repeats again and again until we have no chance but to admit that it is truly bearish), but not one bit worried. I hold SOLID gold. I can hold as long as I want.

    And over here, the price drop has triggered a gold rush. I see many uncles and aunties rushing to buy SOLID gold. It's even on some headlines. Many even fly to Hong Kong (for some reason, it's much easier to buy gold in Hong Kong than in here). Prudence is the spirit our country never loses.

  12. #32
    Secondary Hivemind Nexus Lukasz's Avatar
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    Quote Originally Posted by squirrel View Post
    If gold traders are honest, then you are right. Problem is most are trading on extremely leveraged paper gold. Price of gold is no longer reflecting the true demand/supply.
    yes it does. to reasonable extent and to extent people believe whether the price will go up or down.
    why would you think otherwise?


    and again:

    Gold is too expensive. the price of it was artificially raised when people stopped trusting american dollar. it is reasonable that the price cannot raise to infinite and has to come back down. which is happening now.
    why do you have an issue with inflated price going back to norm?

  13. #33
    Secondary Hivemind Nexus Skalpadda's Avatar
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    I don't see why this is something to be so upset about. Did you invest all your savings in gold?

  14. #34
    Secondary Hivemind Nexus Jesus_Phish's Avatar
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    The way he's spinning it, it sounds like a lot of people in his country invested in gold.
    "Halo is designed to make the player think "I look like that, I am macho sitting in my undies with my xbox""

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  15. #35
    Secondary Hivemind Nexus Zephro's Avatar
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    Quote Originally Posted by Skalpadda View Post
    I don't see why this is something to be so upset about. Did you invest all your savings in gold?
    He has savings to invest?

  16. #36
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    Quote Originally Posted by mickygor View Post
    Nothing that selling it off a little at a time won't solve.
    Problem is people don't sell it off a little at a time; they wait until the price hits a high value then dump their stash onto the market leading to the price dropping off.

    Hence why there's been gold panics fairly regularly over the past century; primarily down to those South Africans and their pesky gold mines.

  17. #37
    Secondary Hivemind Nexus Drake Sigar's Avatar
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  18. #38
    Network Hub Rath's Avatar
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    The most interesting thing I read about gold value was in one of Cory Doctorows' novels. Now I can't remember what it was. And it also may have been fictional. But it was damned interesting.

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