I don't have time to point out all the fallacies of this article, but here are a few:
Interesting piece. Thanks for that.
Still, I have a desire to at least have a small exposure just in case due to say a black swan event gold rallies dramatically.
I don't have time to point out all the fallacies of this article, but here are a few:
1) "Gold, like other commodities, is a notoriously volatile and fickle investment." And stock and bond markets aren't?
2) "Gold's long-term track record isn't great..." Wrong, wrong, wrong, unless you only bought gold in the 80s at $840 (which it only held for about a day).
3) "What drives gold prices? It's an alchemist's mixture of fundamentals and fantasy. Gold certainly has industrial uses and it's a hot item for purchasers of jewelry, especially in India." Gold's main use is as an investment, currency backing, and for hedging purposes. As for jewelry, both India's and China's demand for gold for jewelry is increasing
The black swan event has already happened: massive amounts of money printing, China's accumulation of gold, increased calls for a new reserve currency.
If you are only looking at smaller amounts of investments in gold and silver, why not buy the real thing at www.goldmoney.com
I have no affiliation to them except for being a customer.
Chris,
have a look at this chart of gold price since the mid-70's. Apart from the late 70's and now, gold has been pretty flat. I don't have a similar chart of the stock markets to hand, but I can be reasonably sure they have outperformed gold by orders of magnitude despite their volatility.
http://goldprice.org/30-year-gold-price-history.html
Gold is for magpies and is a terrible investment, silver is more of an industrial metal now than a precious metal.
M
Apart from the late 70's and now, gold has been pretty flat. I don't have a similar chart of the stock markets to hand, but I can be reasonably sure they have outperformed gold by orders of magnitude despite their volatility.
Siver is going to hit pluto at somepoint. It is like an elastic band that follows the price of gold but swings far more widely. It hit €50/ounce in the early 80s and is now only at €17/ounce. There will be a massive rise sometime within the next 10 years.
.
HI Chris,
After looking the GOLDMONEY site i'm pleased that they don't ahve a minimum order amount.
So i'm curious to hear what they are like to deal with, any difficulties when dealing with them etc??
You really should disclose that the ONLY reason silver hit $50 in the 80's was because the market was cornered by the Hunt brothers from Texas. Once that artifical price support mechanism was broken and the normal laws of supply and demand were restored, silver immediatley fell to <$10 (I may be wrong on the exact price, memory ain't what it used to be).
There will be speculators at the end of any boom. long may it continue. As long as I am invested within the secular bull market before they arrive then great.
What is interesting is that after the severe cyclical downturn last year in commodities, all the major commodities bottomed at levels higher than they did in any previous downturn. A classic bull sign that the secular long term boom is continuing.
Fair enough - big problem with that is the timing of your sell - the drop-off in gold and silver prices after their peak is very sharp and severe.
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