Gold Reserves

[vagabonddreamer]

i read an article that showed by calculation that if you purchased gold during the last "high" of the early 80's...that in terms of nominal value you wouldnt be breaking even on your investment yet at todays prices...the article didnt do the same calcs for realestate (probably because there tend to be too many regional fluctuations)...but i would imagine that in most parts of canada you would be significantly farther ahead with land....vs

[cottonpicken]

No kidding,why own gold when interest rates hit the
high teens?

[ado089]

I have the chart on realestate in Calgary from the last highs in the early 80's. If you bought then you were underwater until 2006 based on inflation adjusted dollars. The price of gold never changes, just the value of what you buy it with does.

[ColevilleH2S]

ado, I don't quite follow your statement about Gold, "The price of gold never changes, just the value of what you buy it with does."

The last I checked most everything was priced in U.S. dollars not ounces of gold.

[vagabonddreamer]

this is an interesting discussion...because by extension it is a good example of the "theory of relativity" as it affects economics...some people think that gold is the measure...some people think that land is the measure because without the land you cant mine the gold...some people believe strongly in currency...what is also interesting is that all three are largely commodity based...intellectual knowledge doesnt enter the equation although some theorists beleive it will be the "currency" of the future...

the dark horse is military supremacy...because the only thing that stands in the way of the "bully" being the richest and most powerful...is civility...(although some might even argue whether that tennet holds true... because what IS civility??...it is a relative measure as well!!!)...you have to think of the various ways that "wealth" is accumulated and what your perspective is on the definition of "wealth"...if you were an isolated tribe would "money" mean anything??? vs

[ado089]

Coleville, even though there ae no gold backed reserves gold is still the ultimate when it comes to percieved inherant value. What that means is that once you take into account inflation, US dollar index, opportunity cost and time value of money the real return on gold over longer time frames is zero. The same goes for land, by the time you take into account financing charges, or opportunity cost if you pay cash and inflation unless you have farm land that suddenly becomes a development intrest you're probably sitting at a zero return using average intrest rates and land values. Hence at the end of the day when you look at the assets such as gold or land the "dollar value" changes but in reality the relative value tends to only change slightly in a very long (30yr) cyclical fashion.

[parsley]

Silly me courting gold when I should have been buying<p></p><p class="EC_style8ptBK"><strong>[URL="http://trak.in/india/nortel-networks-bankruptcy-news-issue-no-21/economy-47701/"](shares)[/URL]</strong></p>

[bduke]

Parsley..... Silly you, indeed!

If you had purchased 1000 Nortel and 1000 Apple
shares in Dec. 2008.... prior to the shutting down of
Nortel ... seeing you are comparing gold to Nortel...

You would have lost about $400 on Nortel and you
would have gained about $123,000 on Apple.... an
average gain of about 135%.

Are you are up 135% on Gold?

We can usually find figures that give us warm, fuzzy
feelings.

Like your figure does to men!!!...

LOL... LOL .... Bill

[Hopperbin]

Bduke not sure about you and parsleys figure sounds like your married to each other or something, nothing wrong with guys liking womans figures. Anyone got any insight on HRG High River Gold? They were actually trading for .10 cents a share just not quite 2 years ago. Now they are at .62 or that is what I just paid first purchase on my own, Perhaps if it don't work out my kids RESP will be worthless haha and they will have to learn a third or forth language and work in Kazakstan. Before their crash they were at 3 dollars.

[bduke]

Hopperbin..... Nothing wrong with liking women's
figures is my motto also!

Parsley and I are friends... have been for many
years.

Regarding High River, I suggest you check out John
Embry's perspective.... he is with Sprott Asset
Management.... and he is highly regarded as a gold
investor expert..... and is a first class gentleman as
well.

The point I was trying to get across in the above
post is that we have various options of investments
and investing instruments from which to choose.

We can generally also make comparatives that agree
or disagree with our preferences.

Surely is nice to have some choices.... Bill