Buying games to fight the inflation?

Talk about just about anything else that is non-gaming here, but keep it clean
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deathclaw
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Re: Buying games to fight the inflation?

Post by deathclaw »

Limewater wrote:
likestoplayinpuddles wrote:sad but true war brings in money n brings countries out of a slump.
If that were really true, every country would constantly be building plane and ships and the blowing them up and sinking them for the economic benefits.
Yeah, don't want to get too political, but I just don't get why after all these things somebody still trusts in these Keynesian doctrines and things like government spending could help the economy. Especially spending for wars.

More on this here

http://cafehayek.com/2010/09/war-is-bad ... onomy.html
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Limewater
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Re: Buying games to fight the inflation?

Post by Limewater »

I think this is relevant to this thread:

http://articles.moneycentral.msn.com/Sa ... d=26131547

No, video games weren't on the list. I do think they're enjoying a bit of a bubble right now, though.
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DerekG52
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Re: Buying games to fight the inflation?

Post by DerekG52 »

I like your idea of thinking outside the box, but older games are not always uniform and have liquidity issues. When I mean uniform, you will get varying condition of the game, may or may not have box or instructions, and it's hard to compare against other sales as they may not occur as often. It may be hard to resell a game at a given price point because of the limited demand for such games.

As for buying precious metals, I am personally not a fan because you are basically betting against the strength of the dollar (assuming US). I don't claim to be an armchair economist but there is no guarantee on metals being more valuable in the future. Did some quick research into historical gold prices before the recent hysteria.

Roughly speaking, gold was the following prices:

Jan, 1995: $380/oz
Jan, 2000: $285/oz
Jan, 2005: $425/oz
Jan, 2010: $1120/oz

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Holding from 1995 to 2000 you would have lost money!

From 1995 -> 2005, you roughly would have made 1%/yr return on your investment. Meanwhile during that time period, a traditional CD would have earned you 5-7%/yr between 1995 -> 2000 and 2-4% between 2000 -> 2005.

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All I'm suggesting is be careful. If you look at historical gold prices, it appears to be a long term bubble. I saw this coming when everybody and their mom had a TV commercial asking to buy your gold. At prices of today, there is a lot of downside risk, or at least a large market correction. Everybody should know markets are not perfect and often overshoot in both directions. Just like Spring 09 when there was a massive selloff and the Dow hit 6600.

If you do buy gold, buy it in stock form. GLD is a good ticker symbol. Holding it and being able to trade it yourself can be very hard, storage and security is an issue and finding a broker to buy it as well.

My view on gold is basically this; it will drop when the economy picks up. If the economy doesn't ever pick up, you will want something functionally useful i.e. guns and ammo. Gold in and of itself is not useful to an individual other than a nice paperweight or a weapon to smash someone with.

Please feel free to disagree with me on this topic. I just wouldn't want to have someone be misinformed and *possibly* lose a lot of money. Hope this helps.
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Para
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Re: Buying games to fight the inflation?

Post by Para »

Unfortunately this isn't very practical and it is almost impossible to predict what something will be worth in the future, with the exception of things that are already expensive such as gold, and certain cars for example. Classic cars are worth a lot of money but there weren't exactly a lot of people buying them with the sole intention to resell them in 50 years to make a profit.

It takes money to make money and buying things "guaranteed" to hold their value are already very expensive in the first place so it isn't really practical for the average person to buy in hopes of reselling in the future to make a profit.

If I could afford to buy a lot of gold in hopes to resell it in the future, then I wouldn't exactly be having money problems in the first place.
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