Interest rate cut

[Kimosabi]

Much the same way a rare stamp can be worth more than it's face value,

Plus the gold in that coin is alone is worth more than it's face value.

You miss the point, it's $50 LEGAL TENDER.

 

[Tysonboss1]

But with increased risk, comes an acknowledgement of potentially larger losses. Not many see that either.

Offcourse, But no one ever got rich without the risk of making a loss.

but their is a difference between taking on a degree of "risk" and being "risky", Avoiding risk all together can be a guarateed way of suffering a loss.

 

[Tysonboss1]

You miss the point, it's $50 LEGAL TENDER.

What is your point then, I understand that it is legal tender, all that means is that it has a minimum value of $50.00 should you decide to do somthing silly like bank it or use it in a cash transation.

It's actual value would be much greater than face value due to it's gold content. with a coin like this it can be valued in three ways.

1. it can be valued at face value
2. it can be valued at it's gold content, which varies due to the spot price of gold
3. it can also be valued as a collector coin where it's value is decided by condition, rareity and demand

when it comes to selling it you would value it at which ever one gives you the most profit. offcourse the perth mint being a "for profit corparation" is not going to sell a coin with over $500 of gold in it for $50.

 

[Buddy]

If it wasn't for leveraged investors, the "Savers" stock piles of cash would not be earning interest at all. You can't have "savers" earning interest without borrowers paying interest.

Secondly our system rewards people that take risks as these people are generally more productive, So offcourse a person who just banks money and earns interest not really taking any risk should not have as big a returns as the person who borrows that money and invests it in somthing that adds to the economy

I will agree with you to a point. However:-
1) Are you inferring that people who save are not as productive as those that borrow? I hope not because that is pure unadulterated B.S.. No basis in fact, a generality, off the point, and you have provided no proof. Perhaps the people who save money just so happen to have worked very hard to save that money to make available to other people.
2) I think you are confusing financing and arrangements for capital, with productivity. They are not the same animals. I can show you thousands/millions of examples where cash has been borrowed for extremely unproductive purposes.
3) So "savers" (your term, not mine) who are prepared to lend money take less risk that those that borrow money? I think not. It depends on the purpose for which the funds are being used.
4) "Leveraged investors"? Don't you mean gamblers using other people's money? That's half of how the world (particularly led by the Wall St moguls, er mongrels), got the rest of the world into this mess.
5) "Secondly our system rewards people that take risks..................." Huh? Maybe that's part of the problem that's out of control. And clearly it is! Risk on risk on risk is very risky business. I don't mind risking (real) capital in a business that I think has potential (one example is where I have done exactly that over 8 years ago, and I am still waiting to see the fruits of my investment) but I am not going to risk capital in the B.S. paper that these Wall ST financial geeks have invented.

Oh, and before I finish my rant. Let's not forget the Harvard Business School. Their short term visions are not entierly without blame for brainwashing a whole generation into an unsustainable mess.

OK. That's it....................

 

[Buddy]

What is your point then, I understand that it is legal tender, all that means is that it has a minimum value of $50.00 should you decide to do somthing silly like bank it or use it in a cash transation.

It's actual value would be much greater than face value due to it's gold content. with a coin like this it can be valued in three ways.

1. it can be valued at face value
2. it can be valued at it's gold content, which varies due to the spot price of gold
3. it can also be valued as a collector coin where it's value is decided by condition, rareity and demand

when it comes to selling it you would value it at which ever one gives you the most profit. offcourse the perth mint being a "for profit corparation" is not going to sell a coin with over $500 of gold in it for $50.

Maybe the point is.........
If the shan hits the fit, then who is going to pay more than $50 for so called "legal tender" of $50, other that if the intrinisic gold value is worth more at the time.

Yes, maybe it is worth $925 or more to a collector. Though in my mind it sounds a bit of a ripoff.

 

[Tysonboss1]

1) Are you inferring that people who save are not as productive as those that borrow? I hope not because that is pure unadulterated B.S.. Perhaps the people who save money just so happen to have worked very hard to save that money to make available to other people.

3) So "savers" (your term, not mine) who are prepared to lend money take less risk that those that borrow money? I think not. It depends on the purpose for which the funds are being used.

4) "Leveraged investors"? Don't you mean gamblers using other people's money?

1, I am not saying that the people who generated the savings are unproductive, But their cash sitting in a safe is extremly un productive, the only way it can become productive is if some one takes it out and uses it.

2, yes the savers take less risk than the borrowers, because whether the investment makes money or loses money the savers still expect their money back with interest,.... notice I said "less" risk, not "No" risk,... nothing is free of risk not even government backed bonds.

3, a leveraged investor is no more a gambler than any other investor,

 

[Tysonboss1]

Maybe the point is.........
If the shan hits the fit, then who is going to pay more than $50 for so called "legal tender" of $50, other that if the intrinisic gold value is worth more at the time.

Yes, maybe it is worth $925 or more to a collector. Though in my mind it sounds a bit of a ripoff.

firstly I don't invest in coins or gold,

But from what I can see there are many ways to invest in gold all with there own pros and cons,.... gold coins are just one way,

the pro's for it are that, the coin will always have a minimum value no matter what happens to the price of gold or collector coin prices, It has the potenial to increase in value with the price of gold, it has the potenial to increase in value if that particule design or year of issue becomes rare or sort after.

the cons are that you have to pay a premium when you first buy it due to the fabrication costs and retail profit from the perth mint (obviously a coin is more costly to produce than a bar), another con is that you have to store it which may incurr a cost or risk theft, there is also the risk of damage to the coin which lowers it's value.

 

[Aussiejeff]

Getting back on track - ie INTEREST RATE CUT....

At 6am this morning (AEDST), radio news media were positively CROWING to the effect that "Six Of The World's Major Banks Have Rescued The Economy By Cutting A Massive 50BPS - Stock Prices Have Soared As A Result".

Barely one hour later it's ALL GLOOM AND DOOM AGAIN as the Euro and US markets tanked immediately! LOL. The media cracks me up bigtime....

Every time the world's banks cut interest rates in this climate, more and more SAVERS WITHOUT MORTGAGES are going to pull their deposits out and stuff 'em under their mattresses. There comes a point when the equation of the eroding effect of INFLATION and TAXES on INTEREST for bank deposits outweighs any benefit of having money deposited in a bank in the first place!

SAVERS at many banks worldwide (where interest rates are already at LOW, LOW values ie 2-3%) must be getting close to pulling the pin. You can't just keep lowering interest rates ad-infinitum to satisfy the approx. 25% of the population with mortgages! How can that be fair to SAVERS who are propping up the banks anyway? The banks are going to shoot themselves in the foot AGAIN unless they DON'T drop deposit interest rates - or better still REWARD savers with a 50BPS INCREASE IN DEPOSIT RATES.

 

[chops_a_must]

SAVERS at many banks worldwide (where interest rates are already at LOW, LOW values ie 2-3%) must be getting close to pulling the pin. You can't just keep lowering interest rates ad-infinitum to satisfy the approx. 25% of the population with mortgages! How can that be fair to SAVERS who are propping up the banks anyway? The banks are going to shoot themselves in the foot AGAIN unless they DON'T drop deposit interest rates - or better still REWARD savers with a 50BPS INCREASE IN DEPOSIT RATES.

Exactly.

 

[MrBurns]

Exactly.

Ok they take it out of the bank where does it go, not shares, has to be property or gold, property may get a short term spike out of this.

 

[Aussiejeff]

Ok they take it out of the bank where does it go, not shares, has to be property or gold, property may get a short term spike out of this.

Don't you have a mattress???

 

[MrBurns]

Don't you have a mattress???

Seriously now.......I think they'll leave it there as long as it looks safe, if not the sale of thick mattresses will go up.

 

[Buddy]

Exactly.

I agree................:iagree:
And there should be a tax rebate for savers.

Take action fellow citizens. It is now time for all good men savers to rise above this muck of debt and crush our foes. Let sieze power in this country of ours and promote the goodness of the savers. Let us take the reigns of control of governement, banks, hedge funds, fund managers, pimply faced brokers, etc, etc, and drive them back into the swamp. Where they belong! As to the debt ridden, over leveraged, marginalised, borrowers..................... hedge hogs and Wall St geeks.

Off with their heads I say.:behead:

Meanwhile, back in central bankers land, a further cut in international interest rates has again seen the ASX plummet in early trading as panic overtakes the market.

 

[brettc4]

For those interested in Interest Rates around the world. I just stumbled across this website which some of you may find interesting.

http://www.fxstreet.com/fundamental/interest-rates-table/

Cheers
Brett

 

[Julia]

SAVERS at many banks worldwide (where interest rates are already at LOW, LOW values ie 2-3%) must be getting close to pulling the pin. You can't just keep lowering interest rates ad-infinitum to satisfy the approx. 25% of the population with mortgages! How can that be fair to SAVERS who are propping up the banks anyway? The banks are going to shoot themselves in the foot AGAIN unless they DON'T drop deposit interest rates - or better still REWARD savers with a 50BPS INCREASE IN DEPOSIT RATES.

I had a term deposit roll over this week at ANZ. Had intended to withdraw the capital and place with BOQ for better interest rate, but was surprised to find ANZ had raised their T.D. interest rate by 1.5% (from 4% to 5.5%), so perhaps the big banks might be starting to realise that they need to look after local savers.