As I understood Arbroth the point he was making was that the individual holding gold in Iran has been able to protect himself from the 40% fall in value in fact in his own currency things just became 40% less costly for him in his own country.
Personally I feel the USA and their sanctions against Iran are just part of their normal interference in other countries possibly with some hidden agenda, maybe even cause Iran to strike out and give them or Israel a plausible reason for military action. The same tactic worked back in the early 1940’s by embargoing Japan and closing out their supplies of oil and other vital supplies. No reason to change a true and tested method.
Arbroth is correct I feel, neither he nor I can’t save Australia or its population from what is going to happen in the coming years all I can hope to do is protect my own purchasing power from such currency devaluations. As I said before in answer to your question. It is beyond dispute that the house I thought about buying a couple of years back now only requires me to sell less of the Gold I would otherwise need to sell back in 2010.
2010 my Oz dollar bought 42 UK pence: 2012 my Oz dollar buys 66 UK pence
2010 House GBP 1 Million: 2012 House still on market: GBP 800,000.00
To raise GBP 1 M 2010 @ 42 pence: $238,952.00 sell 2,000 oz of Gold.
To raise GBP 0.8 M 2012 $ 66 pence: $1,212,121.00 sell 677 oz of Gold.
So in fact my previous numbers where incorrect as that property if I wish to buy it today would only take one third of the number of ounces that I would have had to sell back in 2010. Plus just quietly after two years I think a cheeky offer of GBP 700K would do it.
Even if my numbers are a little out I still feel that someone with thirty or fifty years of banking experience will have trouble telling me that I am foolish to protect myself with Gold or that Gold is not working for me in the way I intended it to work particularly in view of this example.
However; I look forward to your explanation of just how I have got this all wrong.
