Comments on: The Rush to Buy Gold

By: Biker Pete

Biker Pete — Fri, 05 Jun 2009 12:33:35 +0000

You mean Christmas and birthday presents might include the latest Whites 500C metal detector, Dan? Pleased to report that neither of our sons needs any financial help. Both exceeded our wildest hopes for them before their mid-20s. I completely agree with your view that most of us can manage our own finances far better than "... some faceless company with glossy brochures..." You've obviously read Melvin & Chan (2008)... at least as far as pages 5 & 6. (I'm impressed... . Virtually word-for-word... . )

I think Kiyosaki's primary message is that the failure of our education system in not educating the young in understanding how to manage their finances, can be compensated for by taking a role in this aspect of (y)our kids' education. Many of us actually do that by example. I confess that I erred by probably over-emphasising the value of investment. My kids both balanced it out by doing it all so much better than we had done, despite our thirty solid years of practice. And where we're more property/super/cash based, their diversification is right across the spectrum. My book, about to be released is titled: "Poor Dad, Rich Sons!"

By: Ned S

Ned S — Fri, 05 Jun 2009 11:43:02 +0000

Kiyosaki reckoned the biggest stock market crash in history was coming because America's 401k system was creating a stock market bubble is my recollection? He said things like "Every time a law changes, the future changes." (Or at least credited his rich dad with having said it.) And reckoned that the real ways to make money were through being a big business owner or an investor. While also pointing out that employees don't morph into professional investors "without developing an educational system to support such monumental change." And Yes, he wasn't adverse to a bit of property flipping as best I can recall? But at the end of the day he reckoned the true wealth was in land (with property on it presumably?) that gave an ROI. (No argument here - Even the ATO lets you depreciate the building - And we know how tight that mob is - So the value is in the land.) He never mentioned gold as best I can recall?

By: Dan

Dan — Fri, 05 Jun 2009 10:46:20 +0000

Pete: I personally don't think that hoarding is a good retirement plan. Not to blow one's own trumpet, but I wrote a blog entry regarding this, the idea being: If your retirement plan consisted of helping your kids (including as adults and parents), setting them up for life, making sure they aren't struggling (emotionally, spiritually and materially), then the returns are much more reliable than any super fund. They might fail, but less likely so than some faceless company with glossy brochures. If you stash bullion, the kids ought to know how to find out where you put it.

By: Biker Pete

Biker Pete — Fri, 05 Jun 2009 09:50:35 +0000

Better to bury soakwells in your backyard, Dan! Yes, the tangibles rule! I'm currently reading Melvin & Chan's "Buy Property With Your Super". Not far enough into it to take a position yet, but with my Super about to materialise, I need to look at better returns than cash. Not bullion-averse, but I'd never bury it where it might be lost for millennia. The Brits continue to unearth such stashes, perhaps indicating that Alzheimers, dementia, strokes, heart attacks and chariot accidents aren't all that new. Large structures with doors, windows and the like are at least visible to one's dependants and descendants... !

By: Dan

Dan — Fri, 05 Jun 2009 09:15:31 +0000

One thing Kiyosaki neglected to mention about his own methods - he recognised a Ponzi Scheme (US Real Estate bubble & broader boom economy) when he saw one and basically invested in it. Did he teach people when to recognise when the scheme was about to fail?

Gold is very likely to enter a Ponzi phase once it becomes popular enough - of that you must be very wary. That is, buying promises is different from buying reality, ie: bullion buried in your garden (or in a bank vault) vs. stocks or certificates. It will not be the first time it has happened to gold.

By: Lachlan

Lachlan — Fri, 05 Jun 2009 08:59:36 +0000

Robert Kiyosaki made money writing a book/s to alert the uniformed that you can get wealthier by investing/creating passive income etc.
He played off the difference between his poor dad (biological father) who had some kind of moral/socialistic aversion to investment and another father (adopted by....forgotten now) who new the principles of investing/capitalism and became rich. He made the point that by writing these books (intellectual property) he would be creating passive income through future sales well after his work was complete. Not sure how successful it all was but he became well known for his books.
And by the way, go gold!

By: Clud Nine

Clud Nine — Fri, 05 Jun 2009 07:46:19 +0000

Welcome back, Steven.

By: AU1064

AU1064 — Fri, 05 Jun 2009 05:38:51 +0000

Dear Wasabu. What are you, some kind of idiot. I asked a simple innocent question and you go off at me. Gold is NOT the only place to put money. I have invested in multiples of property for years now but gold is something that is new to me. It has placed me in an excellent position in my mid 30s.
And you are wrong, it is NOT better to be in the clud of depreciating asstes. That's exactly how to remain porr and go broke. Appreciating assets are better than depreciating assets hahaha
By the sounds of things you are the only one bleating like a sheep. You also don't get rich by working hard, you get rich by working smart.
You don't sound real smart especially how somebody says 'cos' instead of because. I hope nobody is taking your advice because you don't know what you are on about.

By: wasabu

wasabu — Tue, 10 Mar 2009 05:09:20 +0000

Dear AU1064, better to be "in" the club of depreciating asset holders than "out" of it? What are you a Demented Mogambo Guru Sheep (DMGS)? Just in case you're not an expert in the history of Gold and Silver, listen to the GURU once in a while and stop going "baa baa". Answer 1: Yes Gold is always Good cos it maintains it's purchasing power... noooooooo it doesn't make you rich. You get rich by working hard and being smart (WHBS haha I love Ripping Off Mogambo Style (ROMS). Then you put your hard earned wealth where it's safe and that is Gold! Always! Then there's this thing called a "Gold Rush" where everyone wants a piece of the action and a bubble forms. Your guess is as good as my moms where we are in that now! -Counterfeit Mogambo Bum

By: AU1064

AU1064 — Sat, 21 Feb 2009 11:04:24 +0000

Isn't now or anytime a good time to guy Gold?, just as long as you intend to hold for the long term. Doesn't really matter right!? Like property. Better to be in the club than out.
Of course we all like to buy at the bottom or near bottom of the cycle.
But seriously, is now a good time with the rapid rise happening? What should we expect?