Reader Comment on Property versus Gold – Has Gold Really Performed That Well?

Prices and Charts

Change from last weeks gold and silver prices

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Buying Back 1oz NZ Gold 9999 Purity $1937
Buying Back 1kg NZ Silver 999 Purity $685

NZD Gold Holding Firm After Recent Breakout

Gold in NZ dollars is holding up nicely following the recent breakout to 6 year highs.

NZD gold touched the first blue uptrend line this week. So from here it would not be a surprise to see it pull back a bit. Particularly as we are close to overbought zone (above 70) in the RSI indicator.

Any pullback would possibly be down to the red horizontal line. This was previously the overhead resistance line. Now it will likely act as the support line. It would be reasonable to expect NZD gold to test this support line and likely to bounce off it. That could be a very good buying zone to watch for.

NZ Dollar Gold Chart

NZD Silver Still in Consolidation Zone

Silver in NZ Dollars again touched the overhead resistance line. Before once again dipping lower, to end the week hardly changed.

This giant flag formation continues to get more and more compressed. We expect a big move for silver eventually. But the timing as ever with silver is hard to predict.

NZ Dollar Silver Chart

NZ Dollar Falling Again

The New Zealand Dollar is falling again this week. Down a quarter of a percent after touching overbought levels on the RSI.

Look for a retest of the 0.65 line now.

NZ Dollar Chart

Need Help Understanding the Charts?

Check out this post if any of the terms we use when discussing the gold, silver and NZ Dollar charts are unknown to you:

Gold and Silver Technical Analysis: The Ultimate Beginners Guide

Continues below


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Gold Silver Ratio at New High

As we’ve said already silver continues to hover in the same consolidation range while gold breaks out higher.

As a result the Gold to Silver Ratio is now at a 26 year record high above 90.

Gold-Silver-Ratio

We’ve updated a post on this and added a very interesting table. It shows the kind of returns that silver could have in store once the ratio reverses from the current historically high levels. And it will reverse, just as it has always done. Silver remains a fantastic buy, but patience is required.

What is the Gold Silver Ratio? Why is the Gold Silver Ratio at New Highs?

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Gold vs Digital Currencies – Which One Should You Choose?

You may have noticed digital currencies have once again been rising recently.

So we thought it timely for a comparison between them and gold.

Which should you choose? Do you have to?

Gold vs Digital Currencies – Which One Should You Choose?

Reader Comment on Property versus Gold – Has Gold Really Performed That Well?

We received a very thoughtful reply to our recent article from reader JR: Comparing NZ Money Supply, Government Inflation Statistics, Property Prices, and Gold Prices for the Last 19 Years

We thought it worth sharing along with our response…

“While I’m an a metal investor and GSG customer, I tend to disagree in part of the article lately “Comparing NZ money supply”

Part four stated the percentage rise in house prices vs gold prices is almost the same.

4. Interestingly the above numbers show gold was not far behind property over the past 19 years in New Zealand.
 
Property went up almost 255% compared to gold rising 245%. And the gold numbers included a correction of over 35% in the past decade too.
 
Property gets all the headlines and gold is ignored.
 
Meanwhile property looks to be topping out in New Zealand. Whereas gold still has to rise over 18% to reach its all time high in NZ dollars.
 
So right now buying gold looks to have more upside than property in New Zealand.
I’m not sure leverage was taken into account with this calculation:

Option A.
Year 2000 – buy 100,000k in gold
X 245% = 245,000 (145,000 profit)

Option B.
Year 2000 – Borrow to buy a house
Borrow 80% on 100k (500k purchase price)
X 255% = $1,275,000
Minus interest @ 6% (380,000)
Minus rates, insurance etc (13,000)
Profit after deductions = $882,000

Vs $145,000?

Am I out somewhere?”

Our Reply:

Hi JR,

Yes you are correct I didn’t take leverage into account. But then we could argue you can leverage gold too. You could borrow and buy. Or you could use futures or options to gain leverage as well. In which case the returns on gold would also be magnified.

So I just kept it really simple and compared un-leveraged numbers.

Although granted it is common to leverage property. But not so common to leverage gold. And in fact gold’s role as the only financial asset without counterparty risk is usually a good reason not to leverage it!

So I won’t really argue with your numbers either. But as we point out in that article better to own real assets which include property and precious metals.

I guess we were more making the point it can be a good idea to have a bit of both – as you probably do by the sounds of it.

Thanks again for writing.

ANZ to RBNZ: Don’t Save You Bullets – US: Don’t Save With the ANZ!

This week we also had the ANZ bank telling the RBNZ “Don’t save your bullets”

“ANZ economists say the Reserve Bank should not wait for any potential global crisis before lowering interest rates further if it thinks more cuts are needed
The Reserve Bank should not hold back on making further interest rate cuts in case there’s a global crisis, economists at the country’s largest bank say.

“The last thing the RBNZ would want is for the economy to take a blow around the ears with growth already weak and inflation expectations falling.

“If cuts are needed, best to stimulate the economy now and get the economy in a position to weather the next storm.”

Source.

We’d say the odds favour the RBNZ following their advice. Short term interest rates are at record lows and likely to get lower. Any savings you have in the bank are likely to be worth less and less.

So don’t leave them all in there. Swap some for real assets that have stood the test of time.

Get in touch to discuss your different options. Or let us know any questions you have:

  1. Email: orders@goldsurvivalguide.co.nz
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Shop Online with indicative pricing

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This Weeks Articles:

What is the Gold Silver Ratio? Why is the Gold Silver Ratio at New Highs?

Tue, 11 Jun 2019 6:19 PM NZST

What is the Gold Silver Ratio_ Why is the Gold Silver Ratio at New HighsWhat is the gold silver ratio? Why is the gold silver ratio at new highs? In this post you’ll learn: What is the Gold Silver Ratio? How is the Gold to Silver Ratio Used? What is the Ratio Telling Us Now? Why is the Gold to Silver Ratio at New Highs? What to Do Now? […]

The post What is the Gold Silver Ratio? Why is the Gold Silver Ratio at New Highs? appeared first on Gold Survival Guide.

Read More…

NZD Gold Above $2000 – Should You Buy the Breakout?

Sat, 8 Jun 2019 8:06 AM NZST

Prices and Charts Looking to sell your gold and silver? Visit this page for more information Buying Back 1oz NZ Gold 9999 Purity $1928 Buying Back 1kg NZ Silver 999 Purity $682 Gold in NZ Dollars Above $2000 for the First Time since 2013 NZD gold is up sharply this week. It has broken clearly […]

The post NZD Gold Above $2000 – Should You Buy the Breakout? appeared first on Gold Survival Guide.

Read More…

Gold and Silver Technical Analysis: The Ultimate Beginners Guide Updated

Wed, 5 Jun 2019 11:30 AM NZST

Gold and silver technical analysis can be a very large and confusing subject. Technical analysis can seem far too difficult to the new gold and silver buyer. So many people just ignore the topic altogether. But it needn’t be this complex. We’ve written this Gold and Silver Technical Analysis Ultimate Beginners Guide to simplify this […]

The post Gold and Silver Technical Analysis: The Ultimate Beginners Guide Updated appeared first on Gold Survival Guide.

Read More…

Could Negative Interest Rates Be in Store for New Zealand?

Tue, 4 Jun 2019 3:25 PM NZST

Is This What’s in Store for New Zealand Down the Road? How’s this for perverse? Could anything as crazy as negative interest rates on mortgages come to New Zealand? Homeowners in Denmark are “about to get negative interest rates on their loans for all maturities through to five years, representing multiple all-time lows for borrowing […]

The post Could Negative Interest Rates Be in Store for New Zealand? appeared first on Gold Survival Guide.

Read More…
As always we are happy to answer any questions you have about buying gold or silver. In fact, we encourage them, as it often gives us something to write about. So if you have any get in touch.

  1. Email: orders@goldsurvivalguide.co.nz
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Online order form with indicative pricing


7 Reasons to Buy Gold & Silver via GoldSurvivalGuide

Today’s Prices to Buy
1oz NZ 99.99% pure gold bar
1oz NZ Gold Ingot
$2060
1kg NZ 99.9% pure silver bar 
1 Kilo NZ Silver Bar
$787 (price is per kilo for orders of 1-24 kgs$782 (price is per kilo only for orders of 25 kgs or more)

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1oz PAMP Suisse 99.99% pure gold bar
PAMP Lunar Goat Gold Bar
$2121
1kg PAMP 99.9% pure silver bar
PAMP Silver
$837
1oz Canadian Gold Maple 99.99% pure gold coin
Gold Maple
$2163    (or $2119 for 10 or more Backdated Year Coins)
1oz Canadian Silver Maple 99.99% pure silver coin
(Minimum order size tube of 25 coins)

Silver Monster Box
Tube of 25 $723
Box of 500 $13,670 (2019’s)
$13,615 (backdated other years)

(Fully insured and delivered)
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Note:

  • Prices are excluding delivery
  • 1 Troy ounce = 31.1 grams
  • 1 Kg = 32.15 Troy ounces
  • Request special pricing for larger orders such as monster box of Canadian maple silver coins
  • Lower pricing for local gold orders of 10 to 29ozs and best pricing for 30 ozs or more.
  • Foreign currency options available so you can purchase from USD, AUD, EURO, GBP
  • Plus we accept BTC, BCH, Visa and Mastercard
  • Note: For local gold and silver orders your funds are deposited into our suppliers bank account. We receive a finders fee direct from them. Pricing is as good or sometimes even better than if you went direct.

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We look forward to hearing from you soon.

Have a golden week!

David (and Glenn)
GoldSurvivalGuide.co.nz
Ph: 0800 888 465
From outside NZ: +64 9 281 3898
email: orders@goldsurvivalguide.co.nz

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The Legal stuff – Disclaimer:
We are not financial advisors, accountants or lawyers. Any information we provide is not intended as investment or financial advice. It is merely information based upon our own experiences. The information we discuss is of a general nature and should merely be used as a place to start your own research and you definitely should conduct your own due diligence. You should seek professional investment or financial advice before making any decisions.
Copyright © 2019 Gold Survival Guide.
All Rights Reserved.

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