Is anyone else concerned about the Australian economy?

[Parley]

Keeping some of your net worth in precious metals is a good idea.

Gold and Silver are a good hedge against central banks inflating the amount of currency. Gold and Silver will hold their value and likely increase a lot in times like these.

[ramot]

27 minutes ago, Parley said:

Keeping some of your net worth in precious metals is a good idea.

Gold and Silver are a good hedge against central banks inflating the amount of currency. Gold and Silver will hold their value and likely increase a lot in times like these.

Any excuse to buy. more gold jewellery sounds good to me 

[Toots]

1 hour ago, ramot said:

Any excuse to buy. more gold jewellery sounds good to me 

I don't own much gold - some things of Mums I never wear but I have a bit of silver jewellery - again don't wear much.  The most jewellery I wear is a wedding ring and earrings.  OH has some Krugerrands which he's had for over 30 years.

[newjez]

10 hours ago, davlap said:

The thing that makes me mad, again, as with the GFC, is accountability. People stack up credit. Banks give it because it makes them more money.

People got themselves into debt. the bank's shoddy practices and need for profit growth allowed this. Banks are being forced to account for some of this, along with refunding obscene charges and compensating for bad advice and other rip-off methods.

But, what about the people themselves who stacked up the credit? They should have known what they were doing, what the charges would be. They get a nice credit holiday. Near zero interest rates. So what do they do? Take on more credit, buy houses they can't afford. What happens - house prices go up. 

People like me, never in debt, saved and bought what I can afford. What do I get. Savings that lose money, go backwards because inflation beats the interest rate. What do I do. Look for investments. Solid bank shares that pay a divided. Oh look, I'm an investor, I want the bank to make more profit. Maybe I buy an investment property, those prices are rising nicely.

Unfortunately, what I do is sit on cash, because I hate all that. Watching exchange rates, share prices. Unfortunately, now looking at retirement, I will struggle unless I get my money to pay its way.

I also thought Oz was in a housing bubble, far more likely to crash. However, I am also looking at going back to UK to retire. Have you looked at property prices there? A three bed semi where we used to live now costs 350GBP. Their prices were rising just before covid as well.

In the good old days, I would be laughing. Super high interest rates at 10/15%. House price crashes. It would stop the credit junkies in their tracks. People who couldn't afford it would have to wait until they could. Offload the assets that are crippling them, the ones they should never have got in the first place. Hopefully the rental crash might force investors to sell up.

What will happen though, is low interest rates will stay for years. I can't see that has worked before, but they persist with it. People who do have anything and are not in debt will be paying for this for years. Services will be cut, pensions and the rules will be tightened. A bleak outlook for somebody in my position.

You seem to have an issue with debt, and it is something you should deal with.

There's no problem with debt as long as it is used to invest wisely. Debt is a great facilitator for growth. Without debt we would be much poorer.

You should start studying economics to work out how the world you live in works. You are limiting yourself by not doing so.

Edited May 17, 2020 by newjez

[Bobj]

100 oz silver bar and 4 gold coins which I bought many years ago. But, they will go to my grandkids.

Cheers, Bobj.

[Parley]

21 minutes ago, Bobj said:

100 oz silver bar and 4 gold coins which I bought many years ago. But, they will go to my grandkids.

Cheers, Bobj.

I have bought 2 kilo silver bars. I don't have any gold apart from some jewellery but am thinking of buying some.

Silver is very cheap in comparison so everyone can buy some.

[Parley]

25 minutes ago, Bobj said:

100 oz silver bar and 4 gold coins which I bought many years ago. But, they will go to my grandkids.

Cheers, Bobj.

Buy one of these Bob. https://www.abcbullion.com.au/store/gabg32151kg-abc-bullion-cast-bar

 

[Bobj]

1 hour ago, Parley said:

Buy one of these Bob. https://www.abcbullion.com.au/store/gabg32151kg-abc-bullion-cast-bar

 

 

1 hour ago, Parley said:

I have bought 2 kilo silver bars. I don't have any gold apart from some jewellery but am thinking of buying some.

Silver is very cheap in comparison so everyone can buy some.

Actually, I bought a set of 5 gold Sovereigns In a velvet case many years ago. That has gone to my son. My next purchase will be a block of shares. I like 2 dividends a year going into reinvesting... 
Cheers, Bobj.

[SusieRoo]

I wouldn’t mind a few gold coins, I read there is a supply shortage in the UK and USA. I guess everyone is thinking the same.

[VERYSTORMY]

As someone from a gold background, unless you REALLY are an expert in it, don’t consider it. 

[BobHatton]

I had to laugh (somewhat nervously) when Morrison said that China's refusal to take Australia's exports had NOTHING to do with the fact that he accused them of 'causing the virus'. Nothing? Seriously?

You need to stop repeating what Trump Towers is saying ScoMo.....its time Australian politicians led and not followed.

[Parley]

5 hours ago, VERYSTORMY said:

As someone from a gold background, unless you REALLY are an expert in it, don’t consider it. 

Why do you say that ?

It is a very stable long term investment. It holds its value or increase while currencies decrease in their buying power.

Although I do think Silver is the better buy at the moment, I wouldn't mind some gold. Particularly now with central banks printing money like crazy.

Edited May 17, 2020 by Parley

[s713]

On 16/05/2020 at 14:19, Marisawright said:

It was odd to come back to this thread and read our comments this time last year.    Up until the pandemic, house prices were still going up (against the gloomy predictions).

We sold our house in Perth last year 15% down on what we could have got in previous years. Looking at realestate.com recently, prices have dropped further.

I know it depends on area. Where we were, Joondalup WA, the agent told us migrants were down from 14,000 a month at peak to 1,000 (WA) and house prices were doomed. Looking at the website now, they are still tracking down. Great buyers market, probably cheaper than when we originally bought 2009.

Edited May 17, 2020 by s713

[Paul1Perth]

On 18/05/2020 at 06:44, s713 said:

We sold our house in Perth last year 15% down on what we could have got in previous years. Looking at realestate.com recently, prices have dropped further.

I know it depends on area. Where we were, Joondalup WA, the agent told us migrants were down from 14,000 a month at peak to 1,000 (WA) and house prices were doomed. Looking at the website now, they are still tracking down. Great buyers market, probably cheaper than when we originally bought 2009.

When you have a ride up to Yanchep and see how many new developments and how many houses are going to be for sale there's going to be plenty of property to choose from. Now, after the virus, there's not going to be so many migrants needed, visas are going to be harder to come by so common sense tells you there's only one way for property prices to go.

On a good note, we bought our house in 92, in a suburb we love, now paid for it and at it's peak for price was prob worth 800,000. Didn't make us feel any better off though as we ignored all the use your equity in your house to go on a holiday or have a cruise. No, we carried on living within our means, paying the mortgage down slowly and having a good time.

We never bought with intention of making money. We bought because we like the house, like where it is and it's the place we want to stay.

We were lucky when we moved from the UK, we had an end terrace house which we spent 2 years doing up whilst we lived in it. Got lucky in the timing and it doubled in price in 2 years. Paid for us to emigrate and start up here. Shear luck, you sometimes can't pick it and the media might be wrong. Given the virus though and the uncertainty about jobs, income, everywhere in the world, it's not just Aus where property prices will be affected.