I'm back in as of yesterday via GLD at $61. Just a hedge against the dollar tanking, although I'm a bit skittish - we'll see how it goes. I'd like to make gold a long term investment, just don't have the confidence yet.
However, it feels to me like the yellow stuff is ready to run again short term as the dollar weakens further. Next week will be very interesting as well with the election results - a GOP wipeout could spook the market.
Someone on HP recently asked - is gold the next bubble? Will there be another bubble in some asset class right after housing - will we see a triple bubble (stocks - housing - ???). Or is housing the last bubble for awhile?
Gold streaked higher again Thursday with traders betting that more gloomy economic data will undermine the greenback.
New data from the Labor Department show last week's initial claims for unemployment insurance rose 18,000 to 327,000, compared to analysts forecasts of 310,000.
Data for the prior period were revised upward to 309,000 from 308,000.
Also published by the same agency was data showing that productivity growth came to a standstill in the third quarter compared to consensus forecasts for growth of 1.1%.
In addition, the prior period's figures were revised down to 1.2% from 1.6%.
November 02, 2006
Gold again?
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Silver is supposed to have more leverage and upside.
If you want leverage, check out the price history of rhodium. It was $7000 per ounce in 1980!
Gold is NOT an investment.
It's wealth protection.
BUY SLV...1 share = 10 oz of Silver...right now the gold to silver ratio is about 49 to 1...historically it should be more like 16 to 1...Silver is cheap here. Supplies getting tight...SLV to 200
gold will be less than $450 by next year..keith run!
GLD (like SLV) is NOT a tradeing item, it's a solid long term,set and forget play. FIAT is dead. DEBT is huge.
Gold may not be an investment, (but what is today? JNJ at 2% divi or GM, how about those Canadian Royalty Trusts) but guess what, when everyone else is losing money in their homes and stocks (when the market tanks after the election and the Iran bombing) your wealth preservation will make you rich - compared to your neighbors. And that is what its all about anyway, if you are keeping your while they lose.
Gold Rises in London on Concern U.S. Economy Is Slowing
By Danielle Rossingh and Meeyoung Song
Nov. 1 (Bloomberg) -- Gold prices rose for a seventh consecutive trading session in London amid concern about a slowdown in the U.S. economy, prompting some investors to buy bullion as a store of value against declining currencies.
The dollar declined the most against the euro in more than a month yesterday after an industry report showed manufacturing in the Chicago area slowed and U.S. consumer confidence unexpectedly dropped. Investors typically buy gold to hedge against a decline in the value of other dollar-denominated assets. Gold has gained 18 percent this year and the U.S. currency has fallen almost 8 percent against the euro.
``Gold is the only asset, the only commodity that we produce for accumulation as opposed to consumption like zinc or copper,'' Jon Nadler, an investment-products analyst at Kitco Inc., a Montreal-based gold-trading company, said at a gold conference in Seoul yesterday. ``Because of that, it is the ultimate store value. It is what money should be.''
url:
http://tinyurl.com/yfx98f
The productivity of American workers slowed to a standstill in the summer, while wages were rising at the fastest clip in more than two decades — a combination likely to raise inflation concerns at the Federal Reserve.
http://tinyurl.com/yzp9gb
Too much money siphoned off for war. Too much debt to pay. Too many manufacturing jobs sent overseas.
The rising wages are fueled by the over-printing of money, an historic tactic used by incumbent governments to make things look good just before an election. However, as too much money chases too few goods and services, and the real-estate market no longer acting as a "cash sink" to halt it, expect inflation to explode right after the election is over.
>> Gold is NOT an investment. It's wealth protection.
That is, until it's confiscated.
I got back in gold last week.
You may also like the RYDEX inverse dollar-S&P-DOW funds--
RYCWX
RYWBX
Their is a risk that more liquidity will push the market back up. But it seems more likely that it will be just "pushing on a string".
FMW's article said: ``Because of that, it is the ultimate store value. It is what money should be.''
Exactly. I will predict gold will hit 700 by years end.
Keith,
I see you've given up on your deflationary scenario where all assets go down, including gold.
Good move, as the only way we see a deflationary scenario is if US M3 deflates, and the only way that happens is if the US starts running a trade surplus. Otherwise the trade deficit creates a situation where in order for trading partners to keep their products affordably priced, they continue to purchase more and more US treasuries, which ends up creating more and dollars. M3 continues to grow and the value of the dollar continues to drop.
US 1929 and Japan 1989 went into deflationary spirals because they were running a trade surplus so had no artificial demand built in for their treasuries. Right now is not the same situation. It's more similiar to US 1973-74. And we all know what happened to gold after that time period.
One of the rationales for buying gold either vis a vis the miners or contracts for the actual metal itself or the etf like gld or closed end funds like cef is that it is a defacto synthetic short against the dollar and a hedge against inflation.
However, one of the ironies probably lost on Keith is that all those FB's like young Casey are on the same side of the trade as Keith due to the vast amounts of debt on their personal balance sheets, lol
one more followup for Keith:
are you aware of the fact that cap gains on the bullion etfs are taxed at a higher (colectable)rate tan the standard capital gains tax rate?
that's why you trade the gld and slv etf's in your non-taxable (401k, roth) accounts
no, I still believe in deflation - it's happening right now
but the counterweight of a declining dollar trumps deflation when it comes to gold
maybe
I'm so tired of people pushing Gold. Gold is not an investment. It takes 25 yrs or more for it to recover sometimes. If gold tanks, are you willing to hold on to your gold for 25 yrs just to make your money back? If you want to profit from a declining dollar, go forex and bet against the dollar. What happened to Gold $1,000 we kept hearing about? Haha. Suckers. I really laugh when I hear one of the reasons to buy gold is because it has outperformed the stock market over the last five years. Only the last five? pathetic. That's a good reason not to buy gold.
"BUY SLV...1 share = 10 oz of Silver...right now the gold to silver ratio is about 49 to 1...historically it should be more like 16 to 1...Silver is cheap here."
Actually I think the ratio is 50-1. So does the guvmint cause that is how the coins are minted. $50 gold buffalo and $1 silver eagle.
Having said that, my SLV is up 13.5% while the GLD is only up 10.4% since I bought earlier in Oct.
Keith needs to get right and sit tight. Gold was $560 and Silver under $11 not too long ago, but he sold his instead of adding more.
'm so tired of people pushing Gold. Gold is not an investment. It takes 25 yrs or more for it to recover sometimes. If gold tanks, are you willing to hold on to your gold for 25 yrs just to make your money back? If you want to profit from a declining dollar, go forex and bet against the dollar. What happened to Gold $1,000 we kept hearing about? Haha. Suckers. I really laugh when I hear one of the reasons to buy gold is because it has outperformed the stock market over the last five years. Only the last five? pathetic. That's a good reason not to buy gold.
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We will see who has the last laugh,laugh laugh!
Gee and months ago you wankers were making fun of me about silver investments...good to see you finally on board, as it is only up! up! from here..we hope
Oh, BTW. Oil is getting pretty cheap also.
As for gold and silver, my opinion is that you buy physical on the dips, paying cash annonomously, and then stash the stuff away. It may come in handy if the whole thing unwinds economically and socially. So will ammo.
As for gold and silver, my opinion is that you buy physical on the dips, paying cash annonomously, and then stash the stuff away. It may come in handy if the whole thing unwinds economically and socially. So will ammo.
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You might have a good point there. Ammo is very cheap!
I agree with those who thing Gold is a long term hold. It really isn't something to day trade.
Having said that, I hold the belief that gold will hit 1k next year with the dollar imploading. Of course, it could take another year or two. I don't care, I'm up 30% from where I bought. And, it's fun to show the ladies.
Now, on to the market. Has anyone heard that the Fed is lowering the margin limits, all the way back to around 20%. Now, who do you think they are doing that for?????
It isn't for the little guy. He lost all his money in housing.
I think the market is going to scream next year. The Fed wants keep the rich happy, seeing how they're not going to get all their loaned out money back from the working poor.
I'm not saying that there isn't going to be a crash in the market within the next few months. I'm saying that the Fed will see to it that the market recovers fast.
You should invest in silver since the central banks can't manipulate the supply or price of it like they do to gold.
If gold goes to $900 per ounce, then the cat (inflation) is out of the bag for all to see. People will then know that their money is being debased and it can't be hidden. Same thing with the oil market.
Anonopussy:
gold should not be compared to stocks. Gold is a store of value just like cash should be. You can loan out your gold at a low interest rate and make money on it.
All socialists, fiat money cheerleaders and economy-manipulators hate gold because it can't be counterfeited, created out of thin air, or manipulated to make all their Keynesian wet dreams come true.
Gold is going up! It is classical supply vs. demand. Here are the facts from a recent gold publication.
* Gold's fundamentals are very positive. The world's mines produce about 2,500 tonnes of gold a year, while demand for gold is currently running about 4,000 tonnes. And new demand from emerging countries like China and India is soaring.
Gold is going up! Just follow the following link for the supply/demand info.
http://www.dollarcollapse.com/faq/
Keith,
Deflation is happening right now?
I don't feel like being too insulting today, so I'll just say that's quite an odd statement to make, to say the least.
Gold is up today not on news of a falling dollar (dollar is trading higher today against most currencies), but instead on fears of inflation led by a report that Labor costs are increasing at a 4% annual clip right now.
So, quite an odd statement, Keith.
The only asset class large enough to get us out of this hole is war.
There is no mystery that we are spending trillions of a jacked up war on "terror".
With the rise of the Amerikan fascist state through the marrying of big gov with big industry...the war asset class is ripe for the pickings.
dollar at yearly low vs. euro and pound today
What if all our other enemies, who control huge amounts of oil, follow suit?
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Steep, steep cliff!
Keith,
The action in the euro is due to the european central bank holding rates steady today and little to do with the dollar. Look at the dollar compared to other world currencies.
You could also try reading the article you linked to:
"Unit labor costs, a key measure of inflation, rose 3.8%, above expectations of a 3.4% increase.
Without sustained growth in productivity, increases in labor costs tend to get passed on to consumers in the form of higher prices for goods and services.
Bullion market watchers seem to be anticipating a dollar slide, although reaction in the spot market was mixed, with the dollar buying 117.14 yen, up from 117.04 yen late Wednesday.
The greenback was down against the euro, which was recently trading at $1.278, down from $1.2755 previously.
The varied reaction in the foreign-exchange markets didn't hold the gold bulls back, with December-dated contracts closing up $8.50 at $627.80 an ounce on the Comex division of the Nymex."
It is inflation moving gold today, not the dollar moving gold.
Keith - you are kidding, right?
What is the difference between flipping houses and flipping gold?
I'll tell you what is similar.....both will lose you lots of money.
Fool me once, shame on me. Fool me twice, shame on you. By my recollection, this is the sixth time you have bought gold and have been fooled in the past year.
What gives? Either keep it long term (like a house), or don't keep at all.
GLD and SLV are just paper... or less than paper - bits in some computer.
Buy physical.
I am amazed at all the jew haters on this site who bash the jews for money changing and then push gold. What is the difference?
And for those who spout Jesus, remember he was sold for 30 pieces of silver.
But on note, I think it was in the current issue of the Economist that China has 1 trillion is currency reserves, enought to buy all the gold twice over? And they expect their currency reserve to top 2 trillion within five years. Also said they are in a catch twenty two, selll dollars and their stash of dollars tanks in value and they loose, keep their dollars and the same.
Still, if paper money is fiat and not worth anything but the faith of the people why are we concerned with fiat debt? If China wants paper money we'll gladly trade them for real goods. Of course eventually people won't give up a bushel of wheat for a barrel of paper.
And again, the difference between a house flipper and a gold/silver speculator? Not much I think. A home for a home's sake, gold for a diversified portfolio to protect wealth, good things. A home to make a killing or buying gold for the same reason? Go figure.
I'm big on gold and silver bullion. But, not the ETF's. Don't buy it if you believe the USD will become scarce. Look at history, the USD dollar was backed by US gold until Nixon closed the gold window in 1971. We've only had a fiat currency for 35 years. I'm surprised it's lasted this long.
All you anti-gold people have a lot more faith in government spending and pork than I do!
Got gold?
I'm short GLD at $61, we'll see who's right.
Gold will not be in a bubble for sometime. A bubble is defined when speculative supply is generated to meet speculative demand typically with both sides of the equation using leverage. The bubble bursts when it is realised that supply is ample for the current fundamental or real demand. As such the commodities bull has not reached bubble status yet and will not for sometime because supply remains tight this is especially true in the monetary metals markets. Gold will remain in a bull market while the worlds preferred reserve currency remains in a bear market, for the time being that is the USD, depending on the action taken by the US going forward that may or may not remain the case.
Don't buy gold if you don't understand its true nature, the ride is volatile and requires commitment but by all means hedge yourself against a long term USD bear market. I prefer gold and I love silver but you must do the homework before entering these markets.
IMO shorting gold at this point is just plain suicide, never tackle a bull head on.
gold AND silver are looking good right now. oil and drillers as well.
when gold is in a bubble you will know it because everyone is talking about it and has it. who other than the contrarians is pro gold right now? gold has been building quite a strong base under it for a while. anyone notice how it has diverged from oil for a few days now? very bullish
Keith, the best thing you can do is have your broker mail you the stock certificate for your share of GLD. Then lock them in a safety deposit box in a bank at least 500 miles from your home so they will be hard to get to. That way you won't be tempted to sell them.
Check on them in 10 years.
"But that’s not the only red flag flying in silver. An extraordinary development has occurred at the NYMEX/COMEX. This development is unusual and may be unprecedented. Their Chief Financial Officer/Chief Operating Officer (CFO/COO), Jerome Bailey, has suddenly resigned. Any time a CFO suddenly and unexpectedly resigns, great attention is paid to what caused the resignation, since it may signal a serious problem with the organization. For a CFO to resign just prior to a planned initial public offering is downright shocking. I doubt if anyone reading this has ever witnessed it before. I know I haven’t."
http://www.investmentrarities.com/10-31-06.html
Anonymous said...
Gold is NOT an investment.
It's wealth protection.
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Nothing wrong with that. It's been said that, in a bear market, everyone loses, and those that lose less are winners. For instance, they are able to buy up stocks and real estate at fire sale prices, setting the stage for great returns later on. Not a bad deal.
Disgorge! said...
Haha! Goldbug KoolAid everywhere!
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They're not making any more gold.
Disgorge! said...
Wishful thinking. I've been reading these "to da moon!" predictions for .. oh ...years.
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Like the one about it hitting $730 sometime this year?? Oh wait, that has already happened. Next milestone is $800 and then a new all-time (nominal) high.
keith said...
no, I still believe in deflation - it's happening right now
but the counterweight of a declining dollar trumps deflation when it comes to gold
maybe
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All the developed economies (US, Europe, Japan) will eventually inflate the sh*t out of their currencies to pay for their tens of trillions of dollars worth of unfunded liabilities that are due to their ageing populations. The political will to really reform their retirement systems by raising the retirement age to bring the systems back into balance is quite simply not there. Thus, the dollar, euro, yen, pound sterling, etc., will all eventually be worth less than the paper they are printed on.
It's not possible to print gold.
QED
Anonymous said...
I'm so tired of people pushing Gold. Gold is not an investment. It takes 25 yrs or more for it to recover sometimes. If gold tanks, are you willing to hold on to your gold for 25 yrs just to make your money back? If you want to profit from a declining dollar, go forex and bet against the dollar. What happened to Gold $1,000 we kept hearing about? Haha. Suckers. I really laugh when I hear one of the reasons to buy gold is because it has outperformed the stock market over the last five years. Only the last five? pathetic. That's a good reason not to buy gold.
----------------------
Sometimes it takes stocks 25 years to recover too, and many individual stocks don't ever recover. They just go to zero and stay there. I guess stocks aren't investments either.
Doubt the case for gold now. You'll probably be one of the suckers buying it at $4000, just as the bull market is coming to an end. Sounds good to me, I'll have to sell my $4000 gold to *someone*. At that point, nobody will want stocks or real estate, so it will be time to load up on houses, condos, and blue chip stocks.
commodities are real, equities are fluff said...
Oh, BTW. Oil is getting pretty cheap also.
As for gold and silver, my opinion is that you buy physical on the dips, paying cash annonomously, and then stash the stuff away. It may come in handy if the whole thing unwinds economically and socially. So will ammo.
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Don't forget the canned/dried food and bottled water, as well as a (backpacking-style) water filter.
As for oil, buying shares of the super-majors (e.g., BP) seems like the way to go. They pay out relatively well, too.
When going gets tough, tough get tougher said...
"BUY SLV...1 share = 10 oz of Silver...right now the gold to silver ratio is about 49 to 1...historically it should be more like 16 to 1...Silver is cheap here."
Actually I think the ratio is 50-1. So does the guvmint cause that is how the coins are minted. $50 gold buffalo and $1 silver eagle.
Having said that, my SLV is up 13.5% while the GLD is only up 10.4% since I bought earlier in Oct.
Keith needs to get right and sit tight. Gold was $560 and Silver under $11 not too long ago, but he sold his instead of adding more.
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The face values of the silver and gold coins are symbolic only. Obviously, an ounce of silver or gold is worth a LOT more than $1 or $50.
Thanks to all!
Now I know what to do,
Buy
Sell
Hold
Short
Physical coin
paper
forget about it!
OK, having a few microns of gold on your electronics is worth something. Other than that it's just a shiny, fairly rare metal.
Why is it worth pumping mountains full of arsenic? Why is it worth enslaving people to pan for it in Peru? Because people pay a lot for it, because they think somebody else will pay more. It's the purest speculation there is.
You can live in a house, you know. Gold is fundamentally worthless.
Gold bad points:
1) confiscation (has happened before)
2) theft
3) will everyone agree that this soft, yellow metal is the new store of value when paper money goes phut! or will there be some other, better thing to invest in, like solar panels, biofuels etc
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1) Confiscation of just about EVERYTHING has happened before. Also, the people that turned in their gold in the 30's were compensated. Not quite fairly, but it was still better than having your money in a bank that failed and ending up with nothing.
2) OK, that one never happens to stock investors, right? Yeah, right.
3) New store of value? New? Huh? Gold has been a store of value for at least 5000 years. It has never stopped being a store of value. Biofuels and solar panels are nice to have but they aren't suitable to be money. Gold is. That's why gold is money.
4) "The spread" when buying and selling (google it "gold buy sell spread")
5) The insecurity of letting someone else store it, and the anxiety of doing it yourself.
6) Capital gains tax on sale
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4) GLD has almost no spread. The spread of maybe 3% at a coin shop is nothing compared to how much money one can lose if one's life savings are in some crappy fiat currency.
5) Any investment has things to worry about. What if your McMansion gets leveled by an earthquake or tornado? What if your company's CEO is a crook and the books are cooked? What if Helicopter Ben cranks up the printing press and your FRNs and bonds become worthless?
6) Nobody ever went broke paying tax on profits. Besides, mining shares are treated just like any other stock -- long term cap. gains at 15%.
7) Gold's poor history as an investment. Go to Kitco.com and generate a 30-40 year chart. Most of the time you're way behind the stock market, and often not even keeping up with inflation. Don't just look at the past few years, which is an atypical period.
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Strictly speaking, gold is not an investment. It is money. It is a store of value. Over the long long run it has done just that: stored value. Comparing gold to the US stock market in the 19th and 20th centuries isn't exactly right either, is it? The last 200 years have seen the rise of the US from a backwater to a superpower. Will the next 10, 20, or 50 years be as kind? Stock markets in declining countries tend not to do too well, and there is the whole dollar devaluation thing to consider.
8) Gold is well worth mining at higher values, so expect a lot more prospecting and mining if it goes "to da Moon".
9) Gold's value is propped up by Asian jewellery sales. If things go seriously wrong with the world's economy, the curry-munchers will stop buying gold trinkets and the bottom could fall out of the gold market.
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8) There is only so much gold out there that CAN be mined, and the easy stuff is long gone. New deposits take years to find and develop. By way of comparison, it takes almost no time or effort for a central bank to crank up fiat (funny money) "liquidity." Helicopter Ben even pointed that out in a speech a few years ago.
9) The Asian jewelry sales are hardly just for bling. The primary reason Indians buy gold is as a store of value. Their "jewelry" is wearable gold bullion. What do rational people do in an economic downturn? They hoard money. Gold is money.
OK, having a few microns of gold on your electronics is worth something. Other than that it's just a shiny, fairly rare metal.
Why is it worth pumping mountains full of arsenic? Why is it worth enslaving people to pan for it in Peru? Because people pay a lot for it, because they think somebody else will pay more. It's the purest speculation there is.
You can live in a house, you know. Gold is fundamentally worthless.
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If there was such a thing as fiat paper money that did not get inflated/diluted away to worthlessness by the issuing government, we would only need gold for electronics, dentistry, and a few other applications. However, fiat currencies always end up eventually reaching their intrinsic value of zero. That's just human nature at work. The government wants something for nothing and prints and prints and prints until the "money" it issues is worthless.
The reason gold is "worth" doing all those things to get is because gold is real money. After 5000+ years, I would hardly call it a "speculation." The supply of gold is strictly limited; the supply of FRNs ("dollars") is only limited by the imagination of the Fed chair and various other corrupt and/or incompetent government officials. Which form of "money" would you rather have?
Comparing gold (money) to a house (shelter) makes about as much sense as claiming that a toaster is better than an orange.
All the anti-gold comments I'm seeing merely indicate that the gold bull market has a long, long way to run. Excellent.
speculator´s % of longs in gold + silver futures
http://immobilienblasen.blogspot.com/2006/11/speculators-of-longs-in-gold-silver.html
"Jesus, remember he was sold for 30 pieces of silver."
He was betrayed for 30 pieces of silver. He can't be bought.
Silver is at $12.58
Gold is at $625.80
Platinum is at $1206.00
The precious metals are extending their run. Perhaps you doubters should buy some. If you don't get in now, you may never be able to afford it.
I am a new investor to gold.....started about a year ago. Getting the hang of it now. Just went out and bought another 5 British Sovereigns.
I love the feeling of gold in my hands.....beats cash anytime.
Why is that ?
Anonymous said...
I am a new investor to gold.....started about a year ago. Getting the hang of it now. Just went out and bought another 5 British Sovereigns.
I love the feeling of gold in my hands.....beats cash anytime.
Why is that ?
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Because it real money, the real deal, not pieces of paper with numbers on them.
I've noticed on television that dealers tell you to buy when gold is nearing highs and you should get in, then they tell you they are paying top dollar for gold when prices are low and you should unload. Hmmm... I see a whole lot of suckers on this site. No offense to you suckers. What if the dollar goes into a crisis like most of you say? Are you going to buy bread and goats with gold coins and gold bars?
Sometimes it takes stocks 25 years to recover too, and many individual stocks don't ever recover. They just go to zero and stay there. I guess stocks aren't investments either.
Doubt the case for gold now. You'll probably be one of the suckers buying it at $4000, just as the bull market is coming to an end. Sounds good to me, I'll have to sell my $4000 gold to *someone*. At that point, nobody will want stocks or real estate, so it will be time to load up on houses, condos, and blue chip stocks.
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This guy sounds like a sore dot com stock loser. Now he is pushing gold? How good of an investor is he? Buyer of gold beware, if a chump like this is now investing in gold after losing his butt off in stocks..... He must have never heard of an S&P index.
Anonymous said...
I've noticed on television that dealers tell you to buy when gold is nearing highs and you should get in, then they tell you they are paying top dollar for gold when prices are low and you should unload. Hmmm... I see a whole lot of suckers on this site. No offense to you suckers. What if the dollar goes into a crisis like most of you say? Are you going to buy bread and goats with gold coins and gold bars?
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Imagine you are living in a country that experiences a currency collapse. Argentina would be a pretty good recent example. Would you be better off having your life savings in the now-worthless local fiat currency, or would you be better off if you had bought some gold and silver coins and bars? Surely a non-sucker such as yourself should be able to figure this one out...
Anonymous said...
Sometimes it takes stocks 25 years to recover too, and many individual stocks don't ever recover. They just go to zero and stay there. I guess stocks aren't investments either.
Doubt the case for gold now. You'll probably be one of the suckers buying it at $4000, just as the bull market is coming to an end. Sounds good to me, I'll have to sell my $4000 gold to *someone*. At that point, nobody will want stocks or real estate, so it will be time to load up on houses, condos, and blue chip stocks.
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This guy sounds like a sore dot com stock loser. Now he is pushing gold? How good of an investor is he? Buyer of gold beware, if a chump like this is now investing in gold after losing his butt off in stocks..... He must have never heard of an S&P index.
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Hey pal, ever heard of the Dow? How long did it take for the Dow to recover after the crash of '29 and the Great Depression?
Now here's another exercise: how has your beloved "S&P index" done since 2000, in terms of gold? That's right, it's still in a bear market as measured in terms of real money. What you misperceive as a stock "recovery" is just inflation. Go ahead, keep putting your retirement savings in the "S&P index." The economy needs cheap labor, so not everyone can retire. Those like you that are clueless about investing will just have to keep working into their 70s and 80s. Will you be saying:
(1) "Welcome to Walmart", or
(2) "Would you like fries with that?"
Hey pal, ever heard of the Dow? How long did it take for the Dow to recover after the crash of '29 and the Great Depression?
Now here's another exercise: how has your beloved "S&P index" done since 2000, in terms of gold? That's right, it's still in a bear market as measured in terms of real money. What you misperceive as a stock "recovery" is just inflation. Go ahead, keep putting your retirement savings in the "S&P index." The economy needs cheap labor, so not everyone can retire. Those like you that are clueless about investing will just have to keep working into their 70s and 80s. Will you be saying:
(1) "Welcome to Walmart", or
(2) "Would you like fries with that?"
--------------------------------
So are you truly saying that gold itself will give you a secure retirement and keep YOU from working at Walmart? Are you insane?
A diversified small cap index has itself returned about a 1,000% return over the last 35 years. Yes you read right, 1,000%! I think that beats inflation by just a little bit, Hmmm...What do you think? That beats housing by far and leaves gold in the dust. Oh, may I please have an apple pie with my Big Mac meal please?
Anonymous said...
Hey pal, ever heard of the Dow? How long did it take for the Dow to recover after the crash of '29 and the Great Depression?
Now here's another exercise: how has your beloved "S&P index" done since 2000, in terms of gold? That's right, it's still in a bear market as measured in terms of real money. What you misperceive as a stock "recovery" is just inflation. Go ahead, keep putting your retirement savings in the "S&P index." The economy needs cheap labor, so not everyone can retire. Those like you that are clueless about investing will just have to keep working into their 70s and 80s. Will you be saying:
(1) "Welcome to Walmart", or
(2) "Would you like fries with that?"
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So are you truly saying that gold itself will give you a secure retirement and keep YOU from working at Walmart? Are you insane?
A diversified small cap index has itself returned about a 1,000% return over the last 35 years. Yes you read right, 1,000%! I think that beats inflation by just a little bit, Hmmm...What do you think? That beats housing by far and leaves gold in the dust. Oh, may I please have an apple pie with my Big Mac meal please?
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35 years ago (November 1971), gold was around $43. Today gold is $627. That's a 1,358% return over 35 years. Try to do a little homework next time.
35 years ago (November 1971), gold was around $43. Today gold is $627. That's a 1,358% return over 35 years. Try to do a little homework next time.
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You make a good point. But to year 2000 gold was $272 a 633% return. Not bad. But a small cap index would have been higher up to 2000. So a large portion of gold's gains have been recent over the last six years on track with housing (kind of scary). Look at the 90's when housing went down, so did gold. So is now really a good time to buy gold if we are expecting a housing value decline? Here is a link with historicals for gold..
http://www.wisegeek.com/what-is-the-historical-price-of-gold.htm
In 1980 gold was recorded at $641. Spectacular! You say now it's $627. It's at a similiar price now as 26 years ago. What happens if it takes 26 years to get at todays value again? I'm just thinking that the dealers take advantage of the public.
I love these coin and bullion dealers. Ad in a magazine, 1oz. gold eagles
(proof or not,i don't care) $735 to $750 when current gold, at that time was in the high 5's
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Or 1/10 oz. gold coins for $75 (plus S&H) Sounds good, affordable gold, right?
Equals $750 an oz. at the then current price of around $590 oz.
Who is making money here?
Such a deal!
Where do i sign up?
Gold; The founding principles are to have ownership and control of physical coinage, bullion (whatever you prefer)
No paper (contracts), paper is nothing but that, paper.
If the 'you know what' hits the fan, how are you going to redeem your paper?
Long term it, buy it, secure it, forget about it!
If you chase its price, you'll go crazy and sell too soon, or buy on an up-tick!
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