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gold vs us dollar
Posted: Mon Jun 29, 2015 4:35 am
by mathjak107
it can be interesting to see the effect a rise or fall in the us dollar has on gold prices since gold is priced in us dollars.
kitco has a nice break out showing at any moment how much gold went up or down vs how much it went up or down by the dollar changing.
http://www.kitco.com/kitco-gold-index.h ... mpaign=KGX
Re: gold vs us dollar
Posted: Tue Jun 30, 2015 10:25 am
by chesser
This is neat to see.
Thank you for sharing it.
Re: gold vs us dollar
Posted: Tue Jul 07, 2015 4:39 am
by PureSoul
I am always optimistic on gold as it is the best alternative and is considered to have some trusted value during the time of financial crisis
Re: gold vs us dollar
Posted: Tue Jul 07, 2015 7:58 am
by Cortopassi
Yeah I sure feel a lot better that the drop to 1160 this morning is actually a rise...
Re: gold vs us dollar
Posted: Tue Jul 07, 2015 8:48 am
by ochotona
The time to buy gold is coming... under $1000 an ounce. Maybe even $500 an ounce. I will buy the gold that today's gold bugs will sell in a panic and not tell anyone about.
Re: gold vs us dollar
Posted: Tue Jul 07, 2015 9:29 am
by Cortopassi
Well, if that happens, I suspect gold will be at or under 15% in the PP bands and I'll be buying as well.
It is quite amazing how at every turn in the past few years when you think gold should go one way due to world events it ends up going significantly in the other direction.
Which is why I do not trade anything anymore.
Re: gold vs us dollar
Posted: Tue Jul 07, 2015 9:49 am
by mathjak107
which is why as an investment gold has the worst track record of them all.
it hasn't done such a great job as an inflation hedge either being quite random in its response . in retrospect it really has not been as predictable as old harry thought it would be.
Re: gold vs us dollar
Posted: Tue Jul 07, 2015 10:02 am
by Pointedstick
mathjak107 wrote:
which is why as an investment gold has the worst track record of them all.
it hasn't done such a great job as an inflation hedge either being quite random in its response . in retrospect it really has not been as predictable as old harry thought it would be.
Gold hedges against
high inflation, and we haven't really had that since the 1970s. The recent big run-up was, we suspect, due to market expectations that inflation was going to rise due to QE and all the other fed programs. For years all the goldbugs have been predicting massive hyperinflation just around the corner but it just hasn't happened. But when that didn't happen, gold started to correct downwards.
Re: gold vs us dollar
Posted: Tue Jul 07, 2015 10:13 am
by mathjak107
it would take high inflation and a weak dollar. so far that combo has been off the radar.
Re: gold vs us dollar
Posted: Fri Jul 10, 2015 3:58 am
by mathjak107
Pointedstick wrote:
mathjak107 wrote:
which is why as an investment gold has the worst track record of them all.
it hasn't done such a great job as an inflation hedge either being quite random in its response . in retrospect it really has not been as predictable as old harry thought it would be.
Gold hedges against
high inflation, and we haven't really had that since the 1970s. The recent big run-up was, we suspect, due to market expectations that inflation was going to rise due to QE and all the other fed programs. For years all the goldbugs have been predicting massive hyperinflation just around the corner but it just hasn't happened. But when that didn't happen, gold started to correct downwards.
even the run up in the 1970's wasn't accurate since gold just came off the gold standard so moves were greatly exaggerated as money panicked in to a very thin gold market.
today the big benefactor would be short selling , currency hedging and stock options instead of gold if higher inflation happened again .
over time gold is being looked at with less and less value as a currency and a source of insurance. you can see that today when it barely reacted to the Greek financial crises .
currency's get all the action and bets not gold.
personally i think holding so much money in such a poor performing asset is a waste of good investment dollars. long term once again i would bet dollars to donuts gold will be left behind.
Re: gold vs us dollar
Posted: Fri Jul 10, 2015 12:09 pm
by Libertarian666
mathjak107 wrote:
Pointedstick wrote:
mathjak107 wrote:
which is why as an investment gold has the worst track record of them all.
it hasn't done such a great job as an inflation hedge either being quite random in its response . in retrospect it really has not been as predictable as old harry thought it would be.
Gold hedges against
high inflation, and we haven't really had that since the 1970s. The recent big run-up was, we suspect, due to market expectations that inflation was going to rise due to QE and all the other fed programs. For years all the goldbugs have been predicting massive hyperinflation just around the corner but it just hasn't happened. But when that didn't happen, gold started to correct downwards.
even the run up in the 1970's wasn't accurate since gold just came off the gold standard so moves were greatly exaggerated as money panicked in to a very thin gold market.
today the big benefactor would be short selling , currency hedging and stock options instead of gold if higher inflation happened again .
over time gold is being looked at with less and less value as a currency and a source of insurance. you can see that today when it barely reacted to the Greek financial crises .
currency's get all the action and bets not gold.
personally i think holding so much money in such a poor performing asset is a waste of good investment dollars. long term once again i would bet dollars to donuts gold will be left behind.
So you are going with 25% donuts?
Re: gold vs us dollar
Posted: Fri Jul 10, 2015 12:20 pm
by mathjak107
even donuts may pan out better than gold has . whats the risk there ? you get cruller blind ? lol
Re: gold vs us dollar
Posted: Fri Jul 10, 2015 3:47 pm
by Reub
I'm switching my physical gold for Louis Vuitton handbags. Now there is a real store of value!
Re: gold vs us dollar
Posted: Fri Jul 10, 2015 7:25 pm
by buddtholomew
Reub wrote:
I'm switching my physical gold for Louis Vuitton handbags. Now there is a real store of value!
My wife has more LV than I have gold coins
Ever seen the multi-level LV store in Las Vegas? Shoes, golf club bag, roulette table, watches, etc.