Gold

[Bjauck]

Gold back towards all time highs.
I've been long silver which has a lot of catching up to do with gold.

Gold stocks should have a great day.

In NZD terms, Silver has a comparatively recent surge, and is up by about 450% in 20 years. Gold is up by about 530%.

In that 20 yr period NZ inflation CPI is up by 67%; Housing cost index is up by 246%; NZX50 Gross is up by about 350%.

Wages are up 110%

[Daytr]

In NZD terms, Silver has a comparatively recent surge, and is up by about 450% in 20 years. Gold is up by about 530%.

In that 20 yr period NZ inflation CPI is up by 67%; Housing cost index is up by 246%; NZX50 Gross is up by about 350%.

Wages are up 110%

Yeah the turn in gold almost coincided with my commodities career. I remember when gold was about USD220/toz and gold had been going down for 20 years but now was below production costs.

Central banks including NZ had finished their selling & miners stopped hedging and in some cases bought back their hedge books.

Gold topped out just below $2000 in 2011 and silver $49.
Gold now 20% higher than that, silver still has 60% to go just to match those previous highs.

The gold / silver ratio is currently circa 77.
In the last 20 years it's traded on average about 67 so just on that basis silver should be 20% higher.

[Bjauck]

Never a dull moment in commodities! I wonder if China has resumed buying gold again.

[ynot]

Never a dull moment in commodities! I wonder if China has resumed buying gold again.

Hopefully soon. That will give the market some momentum.

[Aaron]

In NZD terms, Silver has a comparatively recent surge, and is up by about 450% in 20 years. Gold is up by about 530%.

In that 20 yr period NZ inflation CPI is up by 67%; Housing cost index is up by 246%; NZX50 Gross is up by about 350%.

Wages are up 110%

Where did you get those stats from?

[Bjauck]

Where did you get those stats from?

They are approximate. Reserve Bank Inflation calculator https://www.rbnz.govt.nz/monetary-po...ion-calculator and https://goldprice.org/

[Aaron]

They are approximate. Reserve Bank Inflation calculator https://www.rbnz.govt.nz/monetary-po...ion-calculator and https://goldprice.org/

Thanks, not sure how you analyse them but using my negative outlook.

A bulls*it CPI figure that the RBNZ uses to justify pushing up asset prices, with workers falling behind the owners of capital. And we wonder why wealth and income inequality keeps getting worse (or better depending on your view).

It might indicate that owning some gold to protect against monetary debasement is worthwhile at least in recent history. Today is not too shabby, mind you all assets probably going up atm with the promise of rate cuts and more monetary debasement.

Alokdhir probably jizzing in his pants after the latest from Adrian Orr.

[Bjauck]

Thanks, not sure how you analyse them but using my negative outlook.

A bulls*it CPI figure that the RBNZ uses to justify pushing up asset prices, with workers falling behind the owners of capital. And we wonder why wealth and income inequality keeps getting worse (or better depending on your view).

It might indicate that owning some gold to protect against monetary debasement is worthwhile at least in recent history. Today is not too shabby, mind you all assets probably going up atm with the promise of rate cuts and more monetary debasement.

Alokdhir probably jizzing in his pants after the latest from Adrian Orr.

The figures do not take into account tax ramifications for the various asset classes. It does show that those who could have invested in any of those asset classes twenty years ago have done quite well. Gold has been a good performer in the period. With housing many would have a boost from leveraging too.

When looking at the lower inflationary increase for wages, it certainly makes you realise the disadvantage for younger folk trying to accumulate their savings and assets, and how much more dependant they will be on inheritances, compared to the older generation, if they are lucky enough.

The Reserve Bank just operates within the remit given to them by the government. Both Labour and National have supported this in-built inflation. The exclusion of much of the inflationary asset price increases from CPI figures has certainly been helpful for keeping interest rates lower. Of course international institutions are known for considering the NZ tax system an anomaly in the OECD, but it is toxic electorally to propose fundamental reform.

[Daytr]

Gold back to record highs.
Back over NZD4k & AUD3.6k.
Giddy up!