Another GFC looming in the next few years ?

i have my allocation in gold as gold mining shares. Is this the best way to put money in gold ? i know you can buy gold coins but how easy it is to sell these cold coins for cash later ?

 

If you had invested in the GOLD ETF, you would have returned 7.35% p.a over the last 10 years, the last 5 years, 4.62% according to sharesight.com. Not bad considering but very volatile.

I plan to have 5% Gold and 5% bonds. ...and on that note, returns on bonds are not as bad as some people would think

5 year return on VGB - 4.95% p.a, 10 year 4,98% p.a

 

Mining shares are much riskier, though can offer leverage to changes in spot price. However, they are not a safe haven, they are not the same as owning physical gold. It's easy enough to sell physical gold back to your dealer or privately (through a site like Silver Stackers), but you obviously then need to consider storing it somewhere safely.

 

So is there any safe deposit boxes around that is guaranteed for the safety or some sorts in Australia ?

 

Maybe you could open some in Park Ridge if you build a basement

 

There are some offering insurance (mostly eastern states) or you can arrange your own.

See this post for more info:

Storing Gold & Silver: Safe Deposit Box In Australia | 2340

 

May be of interest to some people.

About Gold Saver | ABC Bullion

 

probably a bit of both- keep money in the bank and buy some gold- although id prefer platinum over gold.
...and stash some under the mattress, head for the hills, and vote trump.

 

@wombat777 lol... Unfortunately my tenant won't like it mate, if they know the land lord is hiding something under the house.

PS: The house is already built and I didn't think about to create underground storage :-|

 

Hey, just wanted to add my 2 cents.

Some figures are incorrect/misleading.

Subprime mortgage originations reached $600 billion in 2006. The whole market wasn't in the trillions. It never reached a trillion dollar size. The mortgage market overall in US is about $10-12 trillion, US dollars. Subprime is very small. And don't forget, prime mortgage default rates easily overtook subprime defaults since prime market was much bigger.

In relation to US government debt, the figure is useless to readers unless it is compared to something like GDP. And compared to GDP its about 100%.

As a sovereign nation with with its own currency, US cannot default. They can CHOOSE to default like Russians did in late 1990s. Obviously that's unlikely. In 2015 US government spent 6% of its budget revenues on servicing the $19 trillion dollar debt pile. US isn't having any problems servicing it's debt, QE isn't money printing and heaps of fear mongering is out there in relation to government debt.

A government can have big issues with its debt if its not the issuer of its currency i.e Greece. And we all know what's happening over there.

And don't forget US government controls the maturity duration of its bonds. If it ever wanted, they could start issuing 1 month treasuries with the smallest yield possible.

US experienced a decent private sector debt deleveraging starting in 2007. It's banks balance sheets have only increased by a tiny bit since 2008. Should another GFC happen, this time US is a safe haven, IMO.

My main worry in the next few years are:

China's economy
Aussie housing boom/bubble
European economy
Subprime auto loan bubble in US (very small, not even close to subprime)
US mini tech bubble

Disclosure: Own two positively geared properties in Sydney with family, both paid off, purchased 15 years ago. I have investments in Aussie and US shares (US shares is just the SP 500 Index). Hold some tiny cash positions.

I try to invest during bear markets and don't touch most investments unless their churning out decent cash after all expenses/taxes.

 

In addition to my previous post, US government debt ratios and deficit ratios have all improved since 2008. If their economy expands even modestly in the next few years, don't be surprised to see their government debt to GDP ratio fall to 80-90%.

It is amazing so many economists don't understand how QE works. I'm flabbergasted such an intelligent person as Greenspan would predict hyperinflation or even inflation. Every hyperinflation scenario in the last 200 years occurred because of a political instability not because of debt (unless you don't issue your own currency i.e Greece).