Comments on: Economic BBQ on the Credit Default Spit

By: Bindlepete

Bindlepete — Wed, 29 Apr 2009 17:47:38 +0000

Is there really any gold for sale? A lot of paper promises – sure. But the colored stuff that will match it’s brethern in my back yard coffee can?

By: Andrew M

Andrew M — Wed, 29 Apr 2009 09:04:35 +0000

Dunno guys
I think Mogambo is right – plus very funny.
Things have changed alot
What are the current choices as opposed to 2006?
1. Real estate – nope
2. Fixed interest/bonds – yup but depends on a variety of variables.
3. shares – nope
4. Currencies – which – the yuang?? not the US dollar or pound.
5. ??

Where is the real store of value under current condtions?
That is what the neophyte investor would like to know.
ie soon I might have a few grand $nz to invest

By: JMR ManDribble

JMR ManDribble — Wed, 29 Apr 2009 05:04:04 +0000

To Gen Yer, from JMR “I still have my purchasing power” which is all JMRs, which you are whether you like it or not! (Say it in the mirror, followed by LOOK AT ME)Dam you’re goooood!!!

Don’t buy gold because you want an ultra-return… at least as defined in the last 38 years. Think relatively, for the moment: If everyone and their mother has lost 20, 30, 40, 40…. 98.2%(!!!) of their “investment” and you, a gold SAVER maybe a dismally horrifying 5%, then you, the GOLD SAVER can declare: “WELL THAT INVESTMENT WAS EASY! WHEEEEEEEEEEE!!!”

By: Whee - this investing stuff is hard (particularly for Short Attention Spanned Gen Y'ers (SASGYs)

Wed, 29 Apr 2009 00:37:52 +0000

Hi Mogambo – love your column. I read the below extract yesterday and thought it may be of interest. Interested in your response.

Gold
The price of gold is currently almost exactly where it was about fifteen months ago in January of 2008 and yet over that time just about everything that a gold bull could have hoped to happen has happened. Fifteen months ago the hope was that the write offs that were then being announced relating to subprime losses would be ‘contained’ and limited to just a few hundred billion dollars. Now the world knows that the losses are substantially greater and possibly still growing, and that efforts to ‘contain the losses have failed with the financial catastrophe having clearly infected the real economy. In January of last year there was still a belief in both financial and automobile companies, Citigroup and GM both traded at about $30 compared to two or three dollars now and AIG was at $60, still only down 20% from its all time high rather than the 98.2% fall it has now suffered. At the same time as the catastrophe was unfolding central banks around the world embarked upon the most aggressive stimulus efforts the world has ever seen.

These efforts culminated last month with quantitative easing being employed by many central banks. If gold bulls had been told fifteen months ago, with the price of bullion approaching $1000 for the first time, that such cataclysmic events would lie in the immediate future, accompanied by central bank printing presses running, then expectations for the gold price would have been extravagant in the extreme. A continuation of the parabolic rise that had seen gold double over the previous two years would have been expected and yet, despite unprecedented turmoil and panic, the price remains the same. Perhaps the price had already factored in so much of what was to follow, possibly in the same way as equity markets have so efficiently done prior to the IMF issuing their bleakest outlook ever!