I Don't Get The Gold Thing
I'm a pretty good investor. I don't know whether it's my expertise in finance or just luck, but my investment strategies over the years have put me well into the high net worth category.But after all the years I've been at the game, I still don't get the gold thing. What is this obsession with gold as an investment? I think it's 99% hype and 1% sensible.
If you bought gold exactly 10 years ago today, it would be worth 46% more today.
But if you had bought the stock market exactly 10 years ago today (using S&P 500) it would be worth 133% more today.
And that's in the middle of the worst economic crisis in US history when gold is supposed to be worth so much more and stocks are supposed to be worthless.
Exactly what kind of catastrophe would be necessary for this so-called advantage to owning gold to pay off? Armageddon? If Armageddon happened I think your net worth in tradable currency would be the least of your worries.
Gold isn't a substitute for water. You can't eat it. Are people going to suddenly worry about how fancy they look during the Apocalypse and cause a sudden skyrocketing demand for gold plated medical masks and hand sanitizer bottles? In a catastrophe of the apparent magnitude necessary to get this elusive payoff from gold I think food and water would be much more valuable than some shiny metal object. Heck, even eating paper currency sounds more appetizing than eating gold.
Comments (30)
Plenty here pretending to be stockbrokers, with zero knowledge of what happened last week or anywhere else, but thats ok I spose, we'll be comparing imaginary Shelby cobras soon enough, mines got nitrous...
That's a very persuasive case!
Its OK to have an opinion on things, the price of oil or gold or whatever, but lets be realistic.
If you're an expert investor, be it gold or whatever, what is the point of saying so on a dating site? Is this where you are getting advice when to buy or sell?
So, you dont have a good feeling about gold right now, invest your billions in copper maybe or silver?
Seek immediate medical attention!
Stupid phone.
Actually, I wrote that on my computer, and it doesn't do predictive text.
Early 76, gold is around $ 105 per oz....well within the budget of an Army private.. at 1 coin per month...
Silver was cheap & plentiful...almost like Budweiser..
Anyhoo, your reporter didn't buy a coin until 10 / 79...at $440....then came astonish 4 months later when gold hit $1000 per oz....silver, 50 oz.
For sum reason eYe cashed out at $650...to buy a Kawasaki....then felt the burn in a matter of days when it made the surge.....
When you say you are a finance expert....we believe you. Who am eYe to dispute thy blogments ?
In retrospect, the Army privates et Al...sure could have used sum mentoring by "experts" back in that great non-Nixonian Bicentennial era.
Since the lying conman "so-called" president was elected, the smart money has been placed in gold, as a safe haven from the impending unsafe times with Trump at the helm.
Apparently, they anticipated, that he would not be able to handle any real challenges appropriately. Who knew ? Lots of people.
They had confidence in the ability of the president back then,
despite the challenge he was handed from the previous adminstration.
Trump got handed an ideal situation from Obama and has made a bad situation worse.
If it were an election, Joe Biden would not be the Democratic Caucus, would not be Joe Montana,
And, most importantly-- could not be the husband of Joe Biden.
"I'll trade a portion of my Gold/Silver/Platinum for some ammunition ...
"
Gold is a far better material for bullets than lead. Gold is denser than lead; an equivalent grain weight gold bullet is smaller and more aerodynamic meaning that if it is fired at the same muzzle velocity as an equivalent grain weight lead bullet it will maintain it's speed for longer.
See @ 1:50 ...
It should be time to unload your gold and silver shares now is the time. Right before the turn of Communism
Don't laugh- we are looking at 20 to 30% unemployment, huge debt and nothing left to tax but air.
Trump may be coming up with plans that the right would call communist a few weeks ago! Universal minimum income! etc.etc. When youre broke, can't get a job cleaning barf in dive bars, all that high talk we hear from the right gets to sound a lot different fast. Politicians don't dawdle and start passing bills.
Maybe Trump will come up with a New Deal like Roosevelt?!
It's possible that we could have the fastest recovery in history too. Its all up to Corona and Trump.
That represents about 5.3% compound growth over 40 years, but that's certainly not better than the market or real estate. As I say, safe haven for the faint-hearted
In Feb 2011 it started selling at $1. At the start of 2017 it reached $800, rose to $5000 in September, dipped sharply, then rose again. By the end of 2017 it was nearly $20000
So I wish I'd invested a bit in 2011. Very glad I didn't in Dec 2017.
Gold is fairly stable, albeit manipulated. A Kruger Rand in 2000 was selling for $339 and is today $1731 (both prices taken off search engines, E&OE) and I can remember being given one as a gift as a child. It had cost $25.
You wouldn't know an expert if if hit you on the head. The fact that I don't sound like one to you is proof that I am.
What happens in a REAL economy, how and why it works for all, is that each one of us contributes some of our LABOR into it. When we provide goods or services to others, we need a medium of exchange to make transactions easier instead of hauling our goods all over the place while looking for someone who wants to make a trade with us with something that we want from them. Gold, silver and copper fill that need because they take a lot of physical labor to collect! The old saying about something being worth its weight in gold, comes from when people needed spices and salt to preserve meats, and the amount of time/labor to collect a certain weight of them was about equal to what it took to get an ounce of gold! So they traded equally, or "on par" with each other. The labor represented by the spices was equal to the labor represented by the gold! The gold bought the spices and the spices bought the gold.
But when you are dealing with fiat paper currencies, and electronic bookkeeping entries that are just created out of thin air or electrons, the whole system goes out of whack and you get "inflation", which is only a demand for more and more of the fake medium of exchange for your goods and services due to the decrease in the perceived purchasing power of the fiat paper and electronic bookkeeping entries!!! The equation of this for that must remain in balance! In 1925, an ounce of gold would buy a man a pretty nice suit, and today, an ounce of gold will still buy a man a pretty nice suit! Why is that? The suit has the same amount of value and human labor added up in it, as does the gold, but the fiat paper has LOST its value! Is this really so hard to see??