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I wish the ATO would let me decide 'true' value' based on your...

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radson72

163 Posts.

24/04/15

11:34

Post #: 15148518
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Originally posted by goldbear77 ↑

nonsense. people buy gold because of its long term tendency to be a safe store of value - against devaluation in paper currencies (eg inflation).

it doesnt alway perform that function at precise points in time - as ive said elsewhere. eg in a crash gold tends to go down with equities

but equally - just because shares often go down for 6-12 months at a time - doesnt mean they don;t create capital appreciation.

a mistake a lot of researchers make for eg is they use USD gold price to research gold;s behaviour.

So when US interest rates rise to combat inflation - USD rises soUSD gold falls - and so they think gold price isnt effective vs inflation

But as weve seen in past 12 months - while USD gold price was falling AUD gold price is rising. Gold's value stayed pretty much unchanged,

Gold has to be seen through all major currencies to get a sense of its true value - not just USD

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I wish the ATO would let me decide 'true' value' based on your criteria. Could come quite handy for CGT purposes.
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