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

One ounce a month for 38 years. Never sold a gram.

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"

If I could afford a kilo of gold I wouldn't be worrying about such things lol

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!

Great video, totally agree Gold is not solely an investment it’s more of a wealth preservation tool

Unless you bought in 1980 and sold in 2000.. History repeats

Very good presentation. Never seen that much cash on the table. Lots of effort to put into this video. Thank you.

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.

Oh I’m so glad you guys made a part 2

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.

Thanks 🙏 for your education.

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.

Thank you very much for explaining that gold in the long run is definitely a must holding in everyone's portfolio! 👍💰🇺🇸

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.

I agree. Love the metals

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.

Please tell me no more...I am about to cry....

You should mention what the gold investment return would be for the last six months and last 12 months

It's good you show the money! Unfortunally you have to show the money. People does not have knowledge with money.

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

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.......

THANKS nice simple illustration

You are losing money in real terms by putting money in the bank at 1-2%.

Good work...

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👍👍

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).

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 :)

Love these videos. Great work 👍🏼

Great video 😊 really enjoyed it.

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.

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 ?

If you had stored that $1000 in your mattress until 2010 and then bought Bitcoins it would be worth $775,000,000 today. :-)

I like your videos. Wished I lived in Australia so I could support

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...

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.

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

In 1971, how much the average worker made per week

Hi I love your videos! Can you PLEASE do the SAME video for SILVER!

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

1200$ kilos and 8% interest rates on savings... 🤔

Wait a minute. A kilo bar for 1200 dollars???? 1200. An ounce is 1900 right now. How?

Totally agreed

Just finished watching your last video. Haha

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?

price of gold matters to me when I'm buying gold...

AUSTRAC will be calling soon

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.

5,000,000% in the last 10 minutes...I laughed.

Abdul FATAHU

How can i start work with you.

Bro, 20 years allright 49 years is too long=))

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

You have to declare the interest and pay tax on your tax return, now work it out again.

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

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