Re: Will people come back to gold - page 7.

RealMalatesta

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Quote from: Sithara007 on May 09, 2019, 11:56:35 PM

During the past 6-7 years, gold has lost its importance as an investment asset, partially because investing in other assets were much more profitable. For example, during 2011-19, gold gave a return of -20%, while DOW JONES gave a return of +136%. Among the major assets, gold was the only one which gave a negative return. All the others (real estate, treasury bonds, commodities.etc) gave positive returns to their users. And the future outlook also looks discouraging for gold.

Well, I have never really like Gold that much, the hype is just too much and there is nothing that much to really gain from gold because of its very low volatility, no matter how long you keep gold, the value one later convert it to in future is not that encouraging,

I see gold as an asset that is just good for one t use in tying money down against spending, or savings. i.e. if I have a money I don’t want to spend, it would be easier for me to convert it to gold and keep till I am in need of it turn to at any time, I could then be lucky that the value would have appreciated a little bit by the time I need it or t could even depreciate.

For now, I would rather use whatever money I have for a volatility market in cryptocurrency which has better return rate, and I think government should be looking towards this area too.

deisik

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Quote from: Sithara007 on May 11, 2019, 01:14:50 AM

Quote from: Barbut on May 10, 2019, 02:28:26 AM

Quote from: Sithara007 on May 09, 2019, 11:56:35 PM

During the past 6-7 years, gold has lost its importance as an investment asset, partially because investing in other assets were much more profitable. For example, during 2011-19, gold gave a return of -20%, while DOW JONES gave a return of +136%. Among the major assets, gold was the only one which gave a negative return. All the others (real estate, treasury bonds, commodities.etc) gave positive returns to their users. And the future outlook also looks discouraging for gold.

I always thought about gold as a way of keeping your money safe, not as long term investment, more like to keep money to lose its value cause of the inflation. I agree with you that some other investments can bring much more profit, and people now days are more technology oriented than ever before. People will have gold, but in future majority will get into crypto, after that they will buy gold with crypto if they wish to have some gold, or diamonds, or any precious metal.

When the rate of return for a particular asset is in negative, you can't use it to store your wealth. For such a purpose, the returns should be higher than the inflation rate. And this current bearish trend for gold can't be dismissed as a temporary phenomenon

In fact, that has been going on for nearly 40 years

Even if we take into account the rise of 2009-2011 (which was caused by massive printing of dollars via a few rounds of QEs), gold hasn't been able to beat the dollar inflation during that timeframe. It means that if you kept, say, US government inflation-adjusted bonds (TIPS, or how they are correctly called), you would be better off now than if you kept gold all that time (not speaking of other investments)

However, even if gold was an underdog all these years and its returns adjusted for inflation are mostly negative, this doesn't in the least strip it off of its store-of-value use. The decline in value is quite negligible in and of itself, especially if you aim at protecting yourself from events which would devalue anything but gold. In a nutshell, gold is still a good store of your wealth even if it has been somewhat undeperfoming recently

Falgorn

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Gold symbolizes the stability and reliability of your savings. It also brings us the average yield from the growth of its course. Gold has always attracted people with this, so people have always trusted him and will continue to trust him. In this regard, the expression that people will return to gold is a bit wrong. People did not leave him anywhere. Smart people have always kept some of their money as a reserve in gold. I think that this will happen in the future.

playboy654

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The situation will only decide about the future how we can go with the Bitcoin are gold because both having a huge expectation for the future if the Bitcoin fails then people definitely go with the gold only but I am sure about the Bitcoin is having a great future so the possibility of getting into gold was little bit low

Sithara007

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Quote from: Barbut on May 10, 2019, 02:28:26 AM

Quote from: Sithara007 on May 09, 2019, 11:56:35 PM

During the past 6-7 years, gold has lost its importance as an investment asset, partially because investing in other assets were much more profitable. For example, during 2011-19, gold gave a return of -20%, while DOW JONES gave a return of +136%. Among the major assets, gold was the only one which gave a negative return. All the others (real estate, treasury bonds, commodities.etc) gave positive returns to their users. And the future outlook also looks discouraging for gold.

I always thought about gold as a way of keeping your money safe, not as long term investment, more like to keep money to lose its value cause of the inflation. I agree with you that some other investments can bring much more profit, and people now days are more technology oriented than ever before. People will have gold, but in future majority will get into crypto, after that they will buy gold with crypto if they wish to have some gold, or diamonds, or any precious metal.

When the rate of return for a particular asset is in negative, you can't use it to store your wealth. For such a purpose, the returns should be higher than the inflation rate. And this current bearish trend for gold can't be dismissed as a temporary phenomenon. The demand for gold is declining all over the world, especially in the top two markets (India and China).

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Quote from: shinratensei_ on May 10, 2019, 08:24:06 PM

Quote from: fabiorem on May 10, 2019, 04:24:01 PM

I think not. Gold and silver supplies are controlled by central banks, and as such, they dictate the price. The only way for people to go back to them would be if governments started to sell gold to buy bitcoin, and the buyers of such gold would be private companies with the intention of establishing a new market, not controlled by central banks.

But sadly the government will never to do that consider about they are using it as their reserves. Washingon was announcing if the US was holding the biggest gold in the world. But everything controlled by the central bank. The Fed will not try to do that caused by it can give impact to the dollars.

right, of course the government will continue to make gold as the last weapon, where I don't think we will return to gold to invest, but gold remains as a reserve as it is today, of course, as US does not want dollar control to end

mersal

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People will not completely go with the Bitcoin they already had the connect with the gold in all the time so the Bitcoin is not performing well then they can definitely ready to go with the gold.

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Quote from: fabiorem on May 10, 2019, 04:24:01 PM

I think not. Gold and silver supplies are controlled by central banks, and as such, they dictate the price. The only way for people to go back to them would be if governments started to sell gold to buy bitcoin, and the buyers of such gold would be private companies with the intention of establishing a new market, not controlled by central banks.

But sadly the government will never to do that consider about they are using it as their reserves. Washingon was announcing if the US was holding the biggest gold in the world. But everything controlled by the central bank. The Fed will not try to do that caused by it can give impact to the dollars.

Boh manok

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Indeed, on the basis of the past, many people invested in gold and silver, but nowadays other investment places have emerged, such as in digital currencies or among other international currencies, and most of those who have invested in digital currency have returned to gold which is more reliable for make long-term and safer investments because of insignificant price changes

LeGaulois

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Because Gold isn't for a long term investment? When you invest in gold you do for at least 20 years, otherwise, it may don't worth (from someone looking for profits I mean, not someone seeking to save a capital), it's like the real estate.
Also, people argument that cryptos are digital, which is true, and gold, not, but there are investors investing in digital gold/gold paper. With the OP I was more interested with the mass population and the average Joe, not really investors or companies.

Zadicar

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Quote from: finaleshot2016 on May 10, 2019, 11:14:17 AM

Gold is a physical thing that can be seen and touch and for me it's considered as a valuable thing especially when someone give it to you. For me, people will get back and buy gold because you can mortgage some gold items to some luxury shop. Unlike in cryptocurrency, you can't see and touch it but it's also a very valuable thing that you must have. The cryptocurrency have an advantage of being hold and might have a great profit in the future. Gold is a precious thing and to be save for emergency or for the future but the cryptocurrency is for long-term investment.

Why would really need to choose if we would able to possess both things? Comparing Gold and Crypto isnt really that right.
We have known that crypto are digital asset and gold is a natural mineral that can be found on earth which is really having that physical
form.We cant say that gold investors did fully switch to crypto when we do talk on coming back to gold.People would just normally go to
assets which do have security when it comes to price increase in future but well having out crypto is also a good option as well but somehow more
riskier in terms of investment.

fabiorem

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I think not. Gold and silver supplies are controlled by central banks, and as such, they dictate the price. The only way for people to go back to them would be if governments started to sell gold to buy bitcoin, and the buyers of such gold would be private companies with the intention of establishing a new market, not controlled by central banks.

1Referee

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Quote from: alyssa85 on May 10, 2019, 01:03:10 PM

Markets are tanking at the moment due to trade war fears. But gold hasn't moved yet - perhaps it will in the next few weeks if investors start to get really scared.

Gold is an amazing indicator to measure fear; if it doesn't move in times where people do expect it to move, there just isn't enough fear in the market.

Another aspect is that most of the money that's being printed largely flows straight into the stock market. In that regard, it makes sense to ignore Gold, because hey, Gold might be a safe haven asset, but if stocks offer more short term reward potential, investors will ignore Gold until they see the stock market run out of steam and make lower lows, which it hasn't done.

Most people before the US stock market firmly rebounded were strongly of believe that it was the beginning of a massive correction ultimately leading to a crisis. Turns out, it was an amazing buying opportunity. Roll Eyes

alyssa85

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Quote from: Wayan_Pedjeng on May 10, 2019, 10:53:34 AM

Gold is always regarded as a low-return asset. Therefore, the investors will become interested in gold only when the other assets losses their preference. Now the problem is that the markets are doing pretty well currently. The last time we had a recession, was way back in 2008-09. Unless there is some event like a recession, people will continue to overlook gold.

Markets are tanking at the moment due to trade war fears. But gold hasn't moved yet - perhaps it will in the next few weeks if investors start to get really scared.

sheenshane

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Quote from: finaleshot2016 on May 10, 2019, 11:14:17 AM

Gold is a physical thing that can be seen and touch and for me it's considered as a valuable thing especially when someone give it to you. For me, people will get back and buy gold because you can mortgage some gold items to some luxury shop. Unlike in cryptocurrency, you can't see and touch it but it's also a very valuable thing that you must have. The cryptocurrency have an advantage of being hold and might have a great profit in the future. Gold is a precious thing and to be save for emergency or for the future but the cryptocurrency is for long-term investment.

Definitely yes! Gold is the most sustainable and stable asset a person could ever have. Also upon checking, the gold is more profitable and the tycoons are currently moving their assets and converting it to gold already.

The people are not yet convinced about the possibilities the cryptocurrency could give. Considering it as an investment is still a risk. If you will try to check the news, the government are already deciding to ban cryptocurrencies in the US and they are alleging it to be affecting the international rules and laws.

Well, gold is the most used asset ever since in this world. Also, you can definitely make it as jewelry.

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Quote from: Wayan_Pedjeng on May 10, 2019, 10:53:34 AM

Gold is always regarded as a low-return asset. Therefore, the investors will become interested in gold only when the other assets losses their preference. Now the problem is that the markets are doing pretty well currently. The last time we had a recession, was way back in 2008-09. Unless there is some event like a recession, people will continue to overlook gold.

Unlike the recession as well other economic factors people always give importance to gold as a safe investment. With this each and every user will have certain percentage of their investment onto gold. Another thing is the profiting from bitcoin as well other cryptocurrencies, one who have experienced the good earning out of bitcoin will never think of gold even though cryptocurrency network has got lot of consequences.

finaleshot2016

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Gold is a physical thing that can be seen and touch and for me it's considered as a valuable thing especially when someone give it to you. For me, people will get back and buy gold because you can mortgage some gold items to some luxury shop. Unlike in cryptocurrency, you can't see and touch it but it's also a very valuable thing that you must have. The cryptocurrency have an advantage of being hold and might have a great profit in the future. Gold is a precious thing and to be save for emergency or for the future but the cryptocurrency is for long-term investment.

Wayan_Pedjeng

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Gold is always regarded as a low-return asset. Therefore, the investors will become interested in gold only when the other assets losses their preference. Now the problem is that the markets are doing pretty well currently. The last time we had a recession, was way back in 2008-09. Unless there is some event like a recession, people will continue to overlook gold.

Barbut

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Quote from: Sithara007 on May 09, 2019, 11:56:35 PM

During the past 6-7 years, gold has lost its importance as an investment asset, partially because investing in other assets were much more profitable. For example, during 2011-19, gold gave a return of -20%, while DOW JONES gave a return of +136%. Among the major assets, gold was the only one which gave a negative return. All the others (real estate, treasury bonds, commodities.etc) gave positive returns to their users. And the future outlook also looks discouraging for gold.

I always thought about gold as a way of keeping your money safe, not as long term investment, more like to keep money to lose its value cause of the inflation. I agree with you that some other investments can bring much more profit, and people now days are more technology oriented than ever before. People will have gold, but in future majority will get into crypto, after that they will buy gold with crypto if they wish to have some gold, or diamonds, or any precious metal.

Sithara007

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During the past 6-7 years, gold has lost its importance as an investment asset, partially because investing in other assets were much more profitable. For example, during 2011-19, gold gave a return of -20%, while DOW JONES gave a return of +136%. Among the major assets, gold was the only one which gave a negative return. All the others (real estate, treasury bonds, commodities.etc) gave positive returns to their users. And the future outlook also looks discouraging for gold.

Topic: Re: Will people come back to gold - page 7. (Read 1658 times)