GOLD 0.51% $1,391.7 gold futures

Hi Biggle’s and all, “I disagree that gold has protected your...

  1. 3,971 Posts.
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    Hi Biggle’s and all,

    “I disagree that gold has protected your purchasing power in fact you're going underwater at a colossal rate compared with say Sydney property or the DJIA. The DJIA chart only goes to 2013 and gold has plunged since then and the DJIA doesn't include dividends.”

    For the moment you may have a point; however, you must member that Sydney apartments and also in many other places in Australia are currently priced so high due to all the new printed money causing such a bubble.

    You and I and other of our generation can still afford these million dollar units in our major cities and for the moment the price may hold.

    The next generation of house and unit buyers are now approaching their thirtieth birthday, some if they have been smart have paid off their education loans and managed to live without buying up new cars and flat screen TV’s on their all too easy to obtain credit cards. Conversely they may also have help from their parents. Of course this group in MHO are only around 20 to 25% of their generation the balance are not university educated and may have reasonably paid jobs but they live for today and don’t ever expect to own a home at all. That’s why on-line gambling is growing in Australia as is recreational drugs and hours spent playing computer games.

    Now I dare say some of these buyers can put together a $100,000.00 deposit providing they have partnered with someone with a similar salary making around $75,000.00 PA each and have the ability to take a 30-40-50 year mortgage and buy a million dollar unit.

    Now bearing what I have said above do you think there will be sufficient million dollar unit buyers for our generation to sell them to and make out like bandits?

    Personally I think not and if there are not enough willing bidders at some auction in the future what do you think will happen to prices I think we will see the million dollar unit act like the way the BHP share price has moved recently.

    Really it just a matter of thinking things through one does not need a crystal ball so why not just sit back and observe.

    The unit prices will fall, the DOW will fall, the US dollar will fall in value first and later will hand on the baton of reserve currency onto the next runner, the Gold price will rise.

    And those people with five or six units or houses will all try to sell them around the same time as they realize they are asset rich and cash poor as they won’t qualify for any type of government pension as wealthy property owners.

    It’s the same thing I said to my mate at the Goodwood revival festival in September when an old Bentley sold under the hammer at the Bonham’s auction for GBP: 740,000.00. Beautiful car and well done to the seller the current owner will do well to find the next generation of car buyers being so prosperous after buying their London home. (If they can even do that.)

    Of course just my own thoughts shared in good faith.

    Cheers and very best regards: Andy
 
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