chinas big gold rush , page-72

morning all, hi gravscan -

the whole discussion on houses versus gold is pretty well red wine stuff so I don't take it too seriously - more hypothetical really.
That being said - I was assuming that the house was an investment as opposed to it's real use - which is to live in and stay dry etc. (a different sort of investment in my view and a more important one).

But if you look at it as an investment (wealth wise) - then I think you have to look at maintenance costs etc.

for eg. if you have a house that you keep compared to if you have a block of gold out the back in a hole.

if you forget to pay your house insurance and the house burns down - a large part of your investment is gone - kaput.
With gold - not so. Sure you can insure it also - for theft or loss - but if you do that then someone else knows where it is.

The point is that to keep your investments in top condition - with the house you have to

a. insure it
b. paint it
c. keep the rot out
d. keep the roof maintained
- it just goes on and on and on - and there is risk of it being compulsory acquired by some authority - a risk also with a block of hidden gold - but if you wanted to flaunt the law - I know which would be easier to hide.

Gold is a damm good store of wealth long term through unknown risks. AND, it is portable.

I have no idea and no interest in working out how much it would cost to maintain an investment in a house over 100 years - but even the slightest thought tells me it would be a bundle - whereas the cost of the gold would be nothing if you just hid it somewhere safe and kept your mouth shut -

Of course with the house there is also the rental income that would be factored in (but that is really a business) - but then you would have to factor in the effort - there is a hell of a lot of work in 100 years of having tenants - god, what a nightmare.
All the while the gold sits quietly and well mannered in the back yard - hmmmmm

it seems simple to me - but perhaps I am wrong.

Of course none of this accounts for lost opportunity costs - but that applies to both or any investments.

have a good day

Pinto