BUT WHAT ABOUT COMPOUND INTEREST?! Part 2 of "Why The Gold Price ALMOST Doesn't Matter" seeks to answer this frequently commented question since posting the original video. Buy your favourite gold and silver bullion from your favourite bullion dealer at www.bullionnow.com.au
@TheChiefCoin4 жыл бұрын
One ounce a month for 38 years. Never sold a gram.
@BullionNow4 жыл бұрын
BRILLIANT! Well done mate :)
@fannywayne19203 жыл бұрын
passing it on to the kids?
@benwilliams35393 жыл бұрын
adress and time you leave to work, thx.
@wizkid3295 Жыл бұрын
All those years of collecting gold for what if you cant enjoy it ? You would probably die before even use them. Your kids and family will enjoy them at least
@speckledjim_3 жыл бұрын
My grandsd told me years ago -"you can never pay too much for gold, wait long enough and you'll always get your money back"
@BullionNow3 жыл бұрын
Very true. Best to start investing at a young age though! 😂
@truetype804 жыл бұрын
If I could afford a kilo of gold I wouldn't be worrying about such things lol
@BullionNow4 жыл бұрын
😁😁
@TheGilbalfas4 жыл бұрын
Buy smaller amounts. It will make u feel better.
@user-oy9zy4ds9m4 жыл бұрын
I’ve got about 27 ounces trying so hard to get to the 1 kilo (32 oz)mark lol
@ef74804 жыл бұрын
Careful, don't spend all of your cash in one go on gold, just some of it. We all need this monopoly toilet paper 'money' for everyday transactions. Buying a kilo of gold won't make you rich or preserve any wealth if it takes all of your cash to buy it. Buy smaller amounts👍
@fannywayne19203 жыл бұрын
i got like 5 oz im rich af lol
@viperviperpiro4 жыл бұрын
Based on my experience of owning gold kilo bars, one factor to consider when owning is where to sell the kilo bars when required. As one kilo gold bar is not divisible. hence one has to sell at one go. and usually to bullion dealers. One needs to ensure the spot price is high enough to make a decent returns. Else kilo bars are for long term storage... like till gold is $3000 /oz to $5000 /oz.. One way to overcome this is to own some 100g gold bars, (10 x 100g= 1 kilo gold bars.) and sell it online or to anyone whenever u wish or want.. henceforth more divisible. Lastly Gold is insurance and a form of preservation of wealth..., buy some now, and im sure u will not regret it in 5-10 years from now. Liked your video!
@rockymarcianothe3rd1352 жыл бұрын
Melt it down into 10 pieces and sell at spot melt to a smelter tada problem solved
@Rayman964 жыл бұрын
Great video, totally agree Gold is not solely an investment it’s more of a wealth preservation tool
@BullionNow4 жыл бұрын
Yup!
@Mac2022ify4 жыл бұрын
Unless you bought in 1980 and sold in 2000.. History repeats
@stevewong26673 жыл бұрын
Very good presentation. Never seen that much cash on the table. Lots of effort to put into this video. Thank you.
@AmericanBulldogFit3 жыл бұрын
Now just imagine the next 30 years with your savings account giving a 1/4 of a percent interest at best. No thanks. I'll stick with real money. God's money.
@InvestingforKids4 жыл бұрын
Oh I’m so glad you guys made a part 2
@hypehype19824 жыл бұрын
One could also say that I could have used gold to play the Gold and Silver ratio a few times over the 49 years and maybe tripled my metals.
@BullionNow4 жыл бұрын
Very true!
@CT-ig2oz2 жыл бұрын
Thanks 🙏 for your education.
@brandonb58184 жыл бұрын
The only reason cash made $60k in a bank was because interest existed. It doesn't exist for us anymore. So $1,200 is probably going to be worth $2,000 at best over 50 years. That means Gold is the ultimate buy.
@nowweride30944 жыл бұрын
Thank you very much for explaining that gold in the long run is definitely a must holding in everyone's portfolio! 👍💰🇺🇸
@paulg93144 жыл бұрын
I'm enjoying your vids. Please keep them coming. In the future, I'd like more vids about buying and selling investment gold and silver bars locally in Australia, especially for those of us not living in Melbourne or Sydney and who can't get to a dealer easily or quickly.
@sirnewton68744 жыл бұрын
I agree. Love the metals
@kennethwilliams48743 жыл бұрын
Excellent, informative video that really puts things into perspective. However, it must be mentioned that you are using a recent gold price to arrive at these figures. In July 2020 gold was between $1,800 and $2,000US. If you had made this same video in December of 2015 you would have lost 5 years of compounding interest to be sure, but gold was at $1,060US! The only reason you are ahead in this scenario is because gold has been on a recent big run. So people, do remember that if you sock money into a bank and receive compound interest, that figure will always go up, whereas gold will continue to fluctuate, sometimes dramatically. Certainly own gold, but diversification is your best bet.
@MrBodha4 жыл бұрын
Please tell me no more...I am about to cry....
@aussiecoingirl33634 жыл бұрын
You should mention what the gold investment return would be for the last six months and last 12 months
@BullionNow4 жыл бұрын
Much better than cash 😁
@TheGilbalfas4 жыл бұрын
@@BullionNow yep
@misterbacon49334 жыл бұрын
It's good you show the money! Unfortunally you have to show the money. People does not have knowledge with money.
@TheGilbalfas4 жыл бұрын
I love it. Great return over those years. Decent from a growth perspective and excellent from a presevation perspective. The other thing is when you deposit money in a bank you are lending them your money and its no guarrantee they will pay you back because they are loaning that money out at high risk in these Covid 19 uncertain times. Buy Gold. Buy Silver and wait out the depression. Thankyou
@sarge272714 жыл бұрын
Love your videos. Keep 'Em coming. As for the arguments on compound interest, investment products, Crypto currencies, etc, ALL stuff YOU DON'T control!!! NONE! You are a passenger on the ride. You don't know where it's going. You don't know if there are pit stops, pit falls....Nothing. Very, very few win at the market scam. It's the three card Monty. I'm old school: If you don't hold it.......
@Fanta....2 жыл бұрын
The old school like you are dying out, get with the program grandpa. You have no control over precious metals either. just look at all the manipulation. In my opinion you should hold some crypto, as a small high risk percentage of your portfolio. The ROI is too good not to dip your toes in a bit at the very least. diversify..
@silversurfer6821 Жыл бұрын
@@Fanta.... yeah such a good ROI last year hahahahhahahha
@iancassie98404 жыл бұрын
THANKS nice simple illustration
@BullionNow4 жыл бұрын
Welcome 😊
@keepawake30554 жыл бұрын
You are losing money in real terms by putting money in the bank at 1-2%.
@BullionNow4 жыл бұрын
Absolutely!
@nikkion21404 жыл бұрын
Good work...
@TheTorkerman4 жыл бұрын
I was going to make a KZfaq video about scams so can I borrow the gold and cash for my video? 😂😂😂 Thanks Michael another great video👍👍
@sarge272714 жыл бұрын
I like the way you think........
@stephensparkman30722 жыл бұрын
In the USA interest is taxed at the same tax rate as ordinary earned income, so the “net after tax growth rate” using compound interest (especially in high income tax brackets) would be MUCH less. Plus, Investment assets held more than 1 year (e.g., stocks, bonds or gold) are taxed at much lower long term capital gains tax rates. Lastly, I personally view gold similar to investments in raw undeveloped land (e.g., both are likely to appreciate greatly in value over long terms, neither generate monthly income and smaller pieces/parcels carry a higher premium). However, gold has several GREAT benefits compared to raw undeveloped land: 1) it’s not subject to state/county/local property taxes, which must be paid annually on real estate in most states based on the “appraised value” determined by local government appraisers (e.g, I pay roughly $11k USD in annual property taxes on raw undeveloped land I own). I could buy ten 1 kilogram gold bars, bury them on the land and technically double my land value without doubling my property taxes…because property taxes are based on average values of similar size homes/land in the same area (appraisers value land on what is known)… 2) Gold is easily traded regardless of the size. Land trades (automobiles as well) involve legal title transfers and must be recorded with local government property districts to ensure the land is not encumbered as “security” for unpaid debts. 3). Insuring gold bullion against theft, fire… in home vaults or in bank vault, is more reasonable than real estate property insurance if you know where to look. 4) Gold is portable …Land is not portable (that’s a pro and con for theft). However, $1 million of gold value can be held in a relatively small safe. 5) Land can be expropriated by governments for public use. Gold can be confiscated as well (FDR’s Executive Order 6102) BUT proof of gold ownership isn’t apparent or always recorded like land title transaction (many wealthy people held onto gold despite FDR’s order).
@ambientthinker84574 жыл бұрын
For what it's worth, according to Incrementum's "In Gold we trust" report, using the average (Worldwide) return on Gold from 2001 to 2020, you'd have a compound return of 650% at the end of that 20 year period. So that's okay but not brilliant, however, given we're probably at the start of a massive bull run, the compound figure will look a lot different in 2040 :)
@sidneyfyfe71423 жыл бұрын
Love these videos. Great work 👍🏼
@chrissummerfield95834 жыл бұрын
Great video 😊 really enjoyed it.
@BullionNow4 жыл бұрын
Glad you enjoyed it!
@CatsMeowPaw4 жыл бұрын
With the silver to gold price ratio now sitting around 100, well above historical average, does that mean gold is perhaps too expensive or silver is too cheap? It also amazes me that palladium is worth far more than platinum right now, and compared to gold, platinum is very cheap.
@redkelah4 жыл бұрын
those are industrial metals, people are buying less cars as unemployment has spiked everywhere and people get lockdown at home, so less industrial metals needed for the catalytic converters and other parts.
@simonmiddleton44874 жыл бұрын
@@redkelah silver is an industrial metal with far more uses, 2nd most used commodity in the world and there is a major shortage. The paper silver market is to blame.
@redkelah4 жыл бұрын
@@simonmiddleton4487 electrical/electronics is by far the biggest demand (~50% of total demand) followed by jewellery and bullion which make up about 20% each. With lockdowns oil usage is way down and slowdowns in the economy means less electrical/electronics consumption == lower silver demand and prices.
@simonmiddleton44874 жыл бұрын
@@redkelah very good point, 75% of silver is mined as a buy product of other industrial metals so as demand for those industrial products diminish then their is less abundance of silver. The mining industry has been shocked by Corona shut downs all over the world. Mints have been shut down air traffic has been shut down as precious metals travel by air. Thier is a major silver shortage as production lags. Silver is a hybrid metal and people forget this, if the global economy is going into a world wide economic collapse thats when we will see silver move because the other side of silvers value comes into play. Yes silver has a thousand industrial uses but historically it has been real money, a storage of wealth and in troubled times silver has out paces gold. When there are over 500 paper contracts per oz of pysical silver obove ground been traded on the comex you have to ask your self " how are they going to fulfill their orders with physical metals when the big investors want their silver in silver and not a currency thats becoming worthless. Gold and silver are the most traded commodities on the planet and they are the most undervalued assets period. We are living through the perfect storm for the biggest and longest bull market in history. And considering gold and silver is such a small market when the big money poors in, its going to be spectacular.
@geztinsdale3 жыл бұрын
not disagreeing but looking at a different time period ie around 1985 to 2005 - i'm not sure gold held its spending power over that 20 year period, could that happen again ?
@BullionNow3 жыл бұрын
Getting in at the "right time" certainly helps, so it depends to some degree when someone purchases.
@robertbrandywine3 жыл бұрын
If you had stored that $1000 in your mattress until 2010 and then bought Bitcoins it would be worth $775,000,000 today. :-)
@JoeyOnleyy4 жыл бұрын
I like your videos. Wished I lived in Australia so I could support
@BullionNow4 жыл бұрын
We do ship overseas 😉
@thelucky21333 жыл бұрын
@@BullionNow and customs fees?? that´s terrible idea my man.
@Stonezster4 жыл бұрын
I buy a lot of Gold and what scares me about Gold is the Aussie Dollar. If the AUD goes 1:1 to the USD then I am screwed. It did it about a decade ago and that was a Good time to buy gold but if you pay $2700aud now and the currency goes 1:1 then you will be losing over $700oz...
@TheGilbalfas4 жыл бұрын
all depends on when u sell. And what happens if Gold goes to $5000? or $10,000 as is predicted by some? You will be laughing if you held on then regardless of how strong the AUD is
@redkelah4 жыл бұрын
AUD will hit 50 or less to USD in a crisis situation. Debt and "money printing" at the highest ever. And the only thing holding AUD up is iron ore @100 plus but thats as good as it gets. Only way is down for AUD in the coming years.
@caramel97894 жыл бұрын
I'm a newbie to buying gold. I paid $2742oz 19 March 2020 and I'm still behind regardless if spot has hit all time highs of $1800.
@ef74804 жыл бұрын
mel noda - that's a bit pricey for an ounce isn't it? Not sure what Aussie spot price is but if you say 1800 may be the high, how come you paid that much? I bought an ounce yesterday for £1492 with spot being £1423 (July 2020) for comparison
@pablitoperez91094 жыл бұрын
mel noda you paid 2700$!?! For an ounce of gold
@bertoid4 жыл бұрын
But gold has overtaken the cash only in the last 2 years. Just 2 years ago, after holding it 47 years rather than 49, that gold kilo was worth only about $54,500.
@BullionNow4 жыл бұрын
And the cash - even at 8% which is a slightly higher average than everyone actually quotes - is worth pretty much the same at that time. When you start taking off taxes and bank charges it is still a lot less than gold and with gold - it doesn't matter how badly things are managed. With your bank deposit you just have to hope it's there at the end. If you're in Australia (and a bit on the older side) you would remember Pyramid Building Society, State Bank of Victoria and several others where deposits were Government guaranteed and still lost when the banks were badly managed. Every way you calculate it - gold over time is at worst equal to cash but I would argue in all cases - better at storing wealth that compounding cash.
@bertoid4 жыл бұрын
@@BullionNow I agree, the cash after 47 years is the same value as the gold. And the taxes, charges, and risks that you mentioned, make the 49 year scenario even better for gold. I know someone who got burned with Pyramid, and I got burned by the IOOF building society. I would rather have my wealth in gold (and stocks and RE) than cash. My point was simply that without the recent significant uptick in POG, the 49 year picture would look much worse for gold ($64K-costs vs $54K). The uptick was always going to come, but no-one knew when. It might have transpired instead that gold would lag cash for another five or ten years. But I agree that long term, all things considered, gold will almost always be the better option.
@simonmiddleton44874 жыл бұрын
What about gold vs the rest of the currency, when was the last time the bank gave us 8%. There just isn't an argument for fiat tickets. Currencies mortal enemy is GOLD, it just shows how government and central banks have been robbing is through inflation at the same time
@borisbuliak36263 жыл бұрын
Another reason why gold is king is privacy and liquidity. Imagine one has an emergency in between those 40 yrs and taking your $ may incur a heavy penalty. Plus gold has the added advantage of always being sought out peer to peer. If ppl only talk to one another that is
@BullionNow3 жыл бұрын
Well said!
@hoaphan19954 жыл бұрын
In 1971, how much the average worker made per week
@bobjones85873 жыл бұрын
Hi I love your videos! Can you PLEASE do the SAME video for SILVER!
@healthynewshub76553 жыл бұрын
I told a friend who got almost 1 million dollars in a will to buy gold when it was around $398 US ounce in early 2000`s he would have made a good return. But he blew it on women and pissed it up the wall :P
@BullionNow3 жыл бұрын
Ouch...
@thereignofthezero2253 жыл бұрын
1200$ kilos and 8% interest rates on savings... 🤔
@richardsanchez91904 жыл бұрын
Wait a minute. A kilo bar for 1200 dollars???? 1200. An ounce is 1900 right now. How?
@Steve-zr4zd4 жыл бұрын
Totally agreed
@theredknight47784 жыл бұрын
Just finished watching your last video. Haha
@BullionNow4 жыл бұрын
Haha nice!
@SurajKumar-bq2gi4 жыл бұрын
Hello Bullion Now, Can I work together with you as a representative ? I have clients whom are looking for Bullion Gold in Reasonable price or possibly low in Premium. Could You even export?
@nicks16763 жыл бұрын
price of gold matters to me when I'm buying gold...
@markwilkins83144 жыл бұрын
AUSTRAC will be calling soon
@BullionNow4 жыл бұрын
😂😂😂😂😂😂😂😂
@billkats54324 жыл бұрын
Just as long as you can find buyers when you need to offload it fast. I'd find it hard to convince my car dealer to take some gold off me when i want to buy that dream machine one day.
@Fanta....2 жыл бұрын
yep, and as soon as you sell it to a dealer, the government will be waiting with their hand out for their cut of your profits.
@solarorbitz4 жыл бұрын
5,000,000% in the last 10 minutes...I laughed.
@BullionNow4 жыл бұрын
😁😁
@abdulfatahu57003 жыл бұрын
Abdul FATAHU
@parminderkumar69054 жыл бұрын
How can i start work with you.
@hoaphan19953 жыл бұрын
Bro, 20 years allright 49 years is too long=))
@tupacshakur61043 жыл бұрын
LIKE YOU KNOW I LOST LIKE HOW DO YOU KNOW I LOST LIKE YOU HAVE THE GOLD TO PROVE IT YEA YOU DO LIKE MY ONLY CHANCE TO BE WOLF IS TO BE PREPARED FOR THE RUNNING
@1212look3 жыл бұрын
You have to declare the interest and pay tax on your tax return, now work it out again.
@BullionNow3 жыл бұрын
That becomes very complicated as people all have different tax rates but you are correct. It would definitely skew the returns in favour of gold
@CannonBallEddie4 жыл бұрын
ok putting my tin foil hat on here but that pile of paper is not really money it'a a negotiable instrument a promise to pay here in the uk so the real wealth is that gold bar and not the paper
@jewlsg63784 жыл бұрын
Im having a wet day dream just fantasizing about buying an oz of gold for 40 bucks. The good ol days huh..i did start buying at 325 but no where near enough. Darn it...lol....time machine anybody...pretty please....lol...i am still buying though
@CodingAbroad4 жыл бұрын
Yeah but 40 bucks was worth a lot more then in today’s money. Always need to adjust it for inflation :)