Skol wasnt it you that said gold offers no yield yet it seems now that $US's now have a negative yield
http://www.theaustralian.com.au/busi...-1226108870508
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Skol wasnt it you that said gold offers no yield yet it seems now that $US's now have a negative yield
http://www.theaustralian.com.au/busi...-1226108870508
Just goes to prove that when the worst come to the worst it's not precious metals punters flock too, it's the world's reserve currency, the USD. NZD down 5c in 5 days, probably had to happen, a crash. The chart was parabolic.
The Economist says the current POG is a bubble and should be $483, same as The Motley Fool.
http://www.economist.com/blogs/freee...011/07/bubbles
Hmmmm so theres safety in negatitve yeilding paper of a virtually bankrupted country.The $NZ v $us is still above 83c.
It's not nearly bankrupt and the USA is quite capable of paying its debts, which is why its paper has the highest rating. Some punters wonder whether debt should even be mentioned at all and is of little consequence.
Forbes magazine says the USA should sell gold to intervene and send the POG down and also pay off debt. Sounds like a good scheme to me.
Gold in AUD is at a record ATH, $1590/oz.
Normally gold would have also collapsed on a day like this. I suspect very big hungry hands are catching all sellers today.
Skol what do you reckon now? Not what you expected ay?
I doubt it, NCM down $1.45, XGD down 4.55%. If the Economist reckons gold's worth $483, only reckless punters would be dipping their toes in the water. Not what I expected, one of the worst financial routs in recent history and gold takes a dive. The serious money eaks out the USD.
Well in the 2008 rout gold went from 926 to 681 a 27% decline. When the DOW bottomed in March 2009 gold had already recovered to be higher than pre-rout. This time it's hardly been affected - yet. So it may end up higher even earlier after the sharemarket bottom.
Silver in NZ is still more expensive than it was at the start of the week due to the fall of the NZD, even though the price of silver in USD has fallen a bit.
Guess we're all wondering what shares are safe, what investments would be the best. I just had a search for an up-to-date chart for the Dow priced in gold, came up with this one..
http://dowgoldzoom.com/chart_dow_gold_zoom.shtml Note, this last week should be updated soon.
Click on the chart and see the longer-term ones. People like me, who have only tried investing in shares for less than the last 10 years, have been working against the devaluation of those shares compared to something as basic as a gold bar. Sure, some investments pay a dividend, but that decline has been savage. Based on the previous dips, this trend could continue for a while yet, but will eventually flatten off and rebound, and at that point shares will generally be a raging success.
I guess what I take from this, is that anyone who has been able to make a profit or retain their true capital on shares while the trend is backwards, while insiders play the market etc, has done very well. My hat goes off to them.