Fluctuated in currency terms is more accurate because fiat currency is not money.

I was hoping that was what you meant

Sorry, but no, you can't be certain of that. You think you know what the next five years will bring, and hey, you might be right, but to claim certainty is just dumb.

I'm certain of one thi

Hi Guys

Thanks for your help and advice on a post I wrote in 2009 albeit somewhat premature when I wrote it.

Yes I am so glad I didnt get a mortgage on arrival because I now know Perth isnt for me thankfully. We are all different and I don't want to offend others otherwise.

But seriously give it at least 1 year plus all you newbies before you decide on getting on a mortage and I am so glad I didn't go down that route.

Good luck to all those who are thinking otherwise. I so can't wait now to go home to England.


Debs

Sorry it isn't working out for you. Good luck back home.

Now that is silly,a quick check of history.All ords 500 in 1980,gold at $850,call it $500 shall we,you got in just before the irrational exuberance.All ords today around 4300,gold at around $1750.gold has not produced any income while the all ords would average say 4% annual income over that period.

Keep it in constant dollars,use the Dow,around 700 in 1980,gold at the same price,got in just before the top.Dow now around 12500,gold at 1750,and of course both have wide fluctuations on a daily and annual basis.gold hasn't produced any income,the dow has,say 2% annual.

A house in Perth easily bought for 40K in 1980,tomorrow is exactly the same as 1980,a house in Perth iseasily bought for 400K,where are you going to put 400k,buy a house or buy gold,same step into the dark every day.Same choice every day,which will turn out better.

Then of course the accumulation index(dividends reinvested0.all ords was around 36000 last time I looked,from a base of 1000,is gold worth 36x what it was in 1980.Same choice tomorrow,where to put money.

Wage inflation,another easy one gold at 850 in 1980,I earned around 10k per year in 1980 in oz,if I worked now I would probably be earning around 84k in fab shops in Perth doing a bit of overtime.So 1 ounce of gold cost around 4 weeks wages in 1980,now it costs aroud a weeks wages,good hedge against inflation isn't it,so the gold salesmen keep telling me.

Tax implications,well again easy.tomorrow iI get the choice,100k into say CBA shares or 100k into gold.same step in the dark every day.!00k buys me 2000 shares in CBA roughly,this produces an income of around $6600 this year ,a gross income of just under 10K on an annual basis.I can borrow money @ 5.7% fixed for 3 yrs IOA.I get an income of close to 10K and a tax deduction of $5700.

Buying gold I get no income and no tax deduction as the investment does not produce income.Which one would you buy?

On the short side of it iican do a covered short sale on the CBA shares next friday and pick up 2k on monday when buying the shares back,I'll pick up around 3k on a covered short on CBA in August so an easy 5K.

I CAN SHORT GOLD ,BUT I HAVE NO IDEA WHAT GOLD IS GOING TO DO,go up,or go down,I'cant predict the future.I am 99% certain that CBA shares go down mon 20? feb.

Same step in the dark,where would you put money?

geordie downunder