Gold

[WalksWithTurkeys]

Gold is bought when people think stocks and shares are too risky, as it has a fundamental value.

No it doesn't

It has a price, which is whatever someone is willing to pay for it.

Yes it has got a fundamental value. Obviously the price per unit varies.

Rubbish.

So what do you think is the fundamental value today, and what do you think was the fundamental value a year ago?

And what do you think will be the fundamental value in a year's time?

No, you are obviously right. Tomorrow it could be worthless. Not so long ago it was of so little value that it was being used to make railings, and cooking pans. Unlike shares in companies, which are always of high worth. I'm relying on my Woolworths and Comet shares for my retirement.

 

[JohnD]

Gold is bought when people think stocks and shares are too risky, as it has a fundamental value.

No it doesn't

It has a price, which is whatever someone is willing to pay for it.

Yes it has got a fundamental value. Obviously the price per unit varies.

Rubbish.

So what do you think is the fundamental value today, and what do you think was the fundamental value a year ago?

And what do you think will be the fundamental value in a year's time?

Not a question Turkeys can handle, but a year ago the price was about £773, today it is about £727, in year's time, nobody knows.

 

[WalksWithTurkeys]

Gold is bought when people think stocks and shares are too risky, as it has a fundamental value.

No it doesn't

It has a price, which is whatever someone is willing to pay for it.

Yes it has got a fundamental value. Obviously the price per unit varies.

Rubbish.

So what do you think is the fundamental value today, and what do you think was the fundamental value a year ago?

And what do you think will be the fundamental value in a year's time?

Not a question Turkeys can handle, but a year ago the price was about £773, today it is about £727, in year's time, nobody knows.

This is a bit pointless isn't it? I am sure you understand quite well the point that I was making. Gold has an intrinsic worth, although the amount of money someone will pay for a unit of gold will vary, whereas a share can lose all value overnight. Now can we move on from this pointless exchange?

 

[JohnD]

You claim gold has an intrinsic worth.

What do you claim it is, today?

What do you claim it was a year ago?

What do you imagine it will be in a year?

I assert that it has no intrinsic worth, and will only fetch what someone what is willing (and able) to pay for it.

 

[EFLImpudence]

I assert that it has no intrinsic worth, and will only fetch what someone what is willing (and able) to pay for it.

That is true but it is rare, or there is a finite amount, and so people buy in troubled times as they know it will keep its value when times improve unlike a piece of paper with numbers written on it.
That is an intrinsic worth.

 

[JohnD]

no, it's not. Gold has no more intrinsic worth than cowrie shells or cigarettes, or pretty coloured rocks or other shiny things which are rare or difficult to obtain.

If it had an intrinsic worth, it would still have a value if another gold meteorite fell on the earth and doubled the supply, or if improvements in mining or refining allowed it to be produced at half the current cost.

 

[EFLImpudence]

So you are being semantic.

Ok, it therefore depends how you define naturally.

 

[WalksWithTurkeys]

He is arguing for the sake of arguing. You get that on t'internet.

 

[JBR]

I've just seen an advert on Sky News for a company that sells gold coins, so I sent for one of their free books. I've never really been interested in buying gold and I admit to knowing nothing about it but, as prices seem to be at a low ebb, I thought I'd look into it.

 

[WalksWithTurkeys]

Avoid gold in my view, unless you really do know what you are doing. Shares are in the long run a good bet, unless civilisation goes belly up, in which case a shotgun is the best investment. I have invested in shares for 20 years and I do not regret it at all. Very worth while. Pensions are okay, but pension providers take a healthy cut. I am sure the very wealthy buy a private island with well, and food supplies.