That isn't risk. It is opportunity cost. You receive a dividend return because you are risking your capital.
There are fees with everything. Including cash in the bank. Everyone makes a big deal about the cost of storage. A checking account costs money. So does a savings or brokerage account
Thailand Tales:
1) A friend of mine had a mother-in-law who didn't trust banks. One day, she went to fetch some gold from her safe, intending to sell it and use the proceeds to bail out a wayward son who had been arrested for possession of amphetamines. The safe was empty. This solved the mystery of where the useless little turd had been getting the money to buy drugs.
2) Walking back to work after lunch one day, I heard a man screaming from some way down the side street where my assistant lived. I have honestly never heard anybody so angry. Confident that my interference would not be in any way helpful to anyone, and being a dreadful coward, I continued to my workplace, where I related all this to my assistant. The following day, having caught up with the local gossip, she told me the story....
Her neighbour had owned quite a lot of gold. As was his habit, he had gone to work that morning leaving his home in the charge of his housekeeper. When he returned for lunch, he was surprised to find the woman standing on the roof. She had been there for some time. Apparently, a chap had come to fix the television, and had asked her to hold the satellite dish steady while he worked inside. There had, of course, never been anything wrong with the television. There was, of course, no sign of the TV repair man, or the gold.
As evidenced elsewhere, you haven't entirely grasped the concept of zero, have you?
Obviously I am talking about the nominal performance of the asset. And not freaking theft of the asset. Jesus Christ.
But at least gold has to be physically stolen. There's a hell of a lot easier ways to get fleeced. And it happens every day.
Tell me what the chances of physical gold in your hand going to zero is..... I'll wait.As evidenced elsewhere, you haven't entirely grasped the concept of zero, have you?
It would depend on the initial quantity, the environmental conditions, and how long I kept it in my hand before I got bored or tired. Assuming a manageable quantity, an optimum environment and infinite patience, my best guess is that if I kept it quiet, and didn't put it down, most of it would still be there at cessation of life, after which somebody would probably remove it.
There would be some decay, since gold (79Au) has 36 radioisotopes, the most stable of which is 195Au, with a half-life of 186 days.
I'll let you do the math.
...I have free checking and savings accounts at BofA...free storage of cash...gold: fees for secure storage reduce profits (if any) after an indeterminate wait...but go ahead and speculate...try pork bellies next: at least you can eat those if there's a market downturn...
I resume you have deposited funds into your accounts. On which you receive a financial return.
You may be content with those returns.
Your bank manager certainly enjoys the returns his bank makes every second of every day lending your money out to all and sundry. From old ladies to underage children's pimps, unsavory politicians, companies whose products fall out the sky and kill people ....
Some banks are broken into, some deposit boxes are stripped. Some banks go bankrupt.
Some enjoy the thrill of both watching and betting the price of things, including THB and gold, that go up and down. If they know their stuff and some do, profits can be booked irrespective of price direction.
Your bank deposited savings "investment", at risk for 1 year, pays what, 5-10%/year on your "investment".
If you had bought a gold necklace "investment", at risk for 1 year, in a Thai gold shop last year it would have gained 25-40% on your "investment".
If you had bought a gold futures "investment", at risk for two hours, at 2pm today (USD 1887) and sold at 4pm (USD 1895), the amount you bet would have gained 80%, on your "investment".
Your "investment" provides peace of mind, if accessible when you desire access. Some also like to wear/drive/sail in their investment and allow others to awe at their wealth. Some, if an unplanned expense occurs, require instant access.
Does your "investment" meet those criteria?
A tray full of GOLD is not worth a moment in time.
^ That's right Ohoh. For my bank accounts , the $14 a month fee is only waved if there is $5000 deposited.
And yes. Some bank could very well be taking depositers money , and buying gold with it. It will become a common practice when gold really starts to move.
Gold prices now is managed by the major banks. But this wall they've built around it won't last forever
Last edited by Backspin; 31-12-2020 at 09:56 PM.
Hang 0n....
80% of 1887.00 = 1509.60
1887.00 + 1509.60 = 3396.60
3396.60 - 1895.00 = 1501.60
Yup, someb0dy made a big pr0fit today. If you guys are buying and selling, I'm br0king.
Guy calling himself Pragmatic voted to sell gold
And buy what ?
Win!
Any 0f y0u fellas wanna buy a bridge?
Think about this for a minute. You are making fun of me for liking the most marketable good. I should be making fun of you. You are just proving that you haven't thought very much about money and economics.
It's like sitting in the middle of the desert and telling someone they are a fool for liking water. Look at these morons with their water. Water bugs.
Last edited by TheMadBaron; 01-01-2021 at 11:35 AM.
Since 1950 gold like everything else has risen in price and gold goes from strength to strength, but the TD market analysists question golds value. WTF!
Just looked, as last bought gold in 2013 as a long term (20 year) gift.
Gold Price History
$1,300 to $1,900.
Happy enough with that.
The gift has since been topped up with a wide range of cryptos, which may be worth nothing or may be worth millions, and anywhere in between
Syb's fascination with my finances continue unabated into 2021.
I fairly regularly buy the missus Thai gold jewelry. Keeps her happy, but most importantly, when bored wearing it, it gets stashed in various locations around the house - bit like a squirrel. Combined it is a fair catastrophic emergency fund for her that can be easily liquidated if needs be.
More insurance than investment.
Do you still need that wifi extender fitting Nid?
^ and ^^ No worries guys. You know those programs about people who never throw anything away - think like that.
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