buying gold online in your smsf, page-17

Pintohoo

You have brought up some very valid points,

I think it is unlikely gold confiscation will be an issue in the short to medium term, with less than 1% of fiancial assets globally invested in gold, there is just not enough money there, and of that 1%, how much is in central banks, india, china, museums and private collections, that will not return at any price.

If the gold price rises considerably, gold confiscation may become an issue then, but there will be points of exit along the way for the cautious investor IMO.

What do you think is more likely to happen in the next 3 years, confiscation of gold or a bear market in stocks cutting down super accounts again?

The main rationale for gold confiscation would be a return to the gold standard, which i think is very unlikely considering how much fiat there is in circulation relative to gold.

The amount of fiat currency in circulation are rising much faster than the supply of gold to the market.

To back all the USD fiat produced you would need a gold price in the tens of thousands, but remember bankers do not want limits imposed on banking, and a gold standard is the ultimate monetary limitation, so they will fight it to the death.

There is a reasonable argument out there for a partial backing of fiat with gold, but again what would that say to people who have confidence in a fiat system.

This is why a precious metals hedge within super may work well, so,

for example a fund investing 10% of its assets in hard precious metals could allocate equal thirds to silver, gold and platinum, in the unlikely event that one of the metals is confiscated, the others will likely rise considerably, dont you think?

It will be difficult to confiscate silver and platinum without disrupting significant industries.

Gold confiscation would make silver and platinum for INVESTMENT purposes much more scarce.