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Thread: Gold Investment? Is it wise
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02-16-2012, 07:20 AM #51Disabled
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do a balanced portfolio. divide your money in between gold, treasury bonds, stocks.
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02-16-2012, 09:22 PM #52Web Hosting Master
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Historically, Gold had been a bad investment. It feel from heights in 1980.
I believe in efficient markets. If too many people folk to a certain investment, it is time to get out. And therefore, lay man investors like us are disadvantaged. We are just betting at 50-50% success rate.
PHD analysts have the advantage - they have sophisticated formulas and deep insights to know more than median investors. It is a zero sum game. We are losing to professional investors.
So if we believe in efficient markets with the flaw that human beings are also emotional, we can make use of Buffet's rule - buy when everyone is scared.
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02-16-2012, 09:46 PM #53Disabled
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gold is in demand because the current fiat currency, $, is basically empty behind ( being printed like a banana republic ) and the wall street scam caused financial assets and money to be poisoned worldwide with no foreseeable recovery. ( poisoned assets are going on creating poisoned assets )
so, in this environment, gold, is a reliable standard/investment.
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02-16-2012, 11:32 PM #54Web Hosting Master
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What you said, translated into economics, it means is gold a good hedge against inflation?
Printing money = higher inflation = less value of the currency
Historically, gold wasn't a good hedge against inflation, as this chart will show: http://inflationdata.com/inflation/i...tion_chart.htm
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02-17-2012, 10:36 AM #55Disabled
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well, 'economics', as we call it, is only valid with its mechanics and behavior set during times of proper stability. stability required for it to be valid is very little, indeed. but, if there are situations that shake the foundations of economics or society, economics becomes non-useful to predict anything.
you could predict stuff even during world war ii.
but, when the very core of economics is being shaken, like the worldwide financial asset poisoning caused by wall street fraud, and the fiat currency used by world ($) becomes empty behind, then the very tools of economics becomes dangers in themselves.
think - there are endless number of investment funds that contain poisoned assets. there are endless number of solid investments like built factories, traded commodities, which were done with poisoned assets. there have been endless number of products produced and sold, which origin from some spending done by poisoned assets or with cash taken by loan against poisoned assets.
the reason the world is in crisis is, because noone knows how badly the world financial wealth was poisoned. noone trusts noone, so everyone lends to everyone else as little as possible.
there is endless entanglement in between financial wealth and its tools in between themselves right now. even gold or gold-backed funds are not immune from this. someone may have bought gold or gold backed funds, but, where did that wealth to buy them come from ? who knows how much of that wealth originated from poisoned assets ?
that said, this leaves gold, as a solid commodity, the most reliable valuable and financially tradeable item. gold is gold. even if the entire world order crumbles into medieval ages, gold will keep value.
of course, someone investing in gold, will lose a lot of potential profit that could be made from this or that tool, by following the immense fluctuations (luckily) in chaotic economic times. however, that requires either huge amount of luck, or insider info.
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02-17-2012, 08:31 PM #56Web Hosting Master
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Warren Buffett has weighed in on gold.
I tend to agree with him about gold from a fundamental perspective.
-mike
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02-17-2012, 08:49 PM #57Disabled
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that's quite an insightful article. the parts about facebook and linkedin too. and how the author responds to buffet's preference of stocks and the prediction of how things will stay 'as they were', is also very precise.
today is not like 1960s. its a totally different world now.
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02-17-2012, 08:57 PM #58Web Hosting Master
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For what it's worth, I sold nearly all of my gold holdings near the high of $1900 an ounce. Gold is at $1723 an ounce right now (down about 10% from when I sold). It's hard to say what will come!
I can't criticize anyone who buys gold. I just personally feel that the value might be propped up a bit too much, and I would potentially expect some losses in value.
-mike
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02-17-2012, 09:04 PM #59Disabled
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well, definitely have to materialize the earnings by selling at a point in time.
tho most who buy gold, buy it for security.
and in some retrospect, its a curious imbalance - when gold goes down, economy generally goes up and its easier to find jobs or make money. when gold goes up, economy generally goes down. so, it seems a wise investment - if you are working.
still i would prefer balanced portfolios. distributing the risk in between stocks, bonds, gold and interest.
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02-17-2012, 09:08 PM #60Web Hosting Master
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02-17-2012, 10:02 PM #61Disabled
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02-17-2012, 11:33 PM #62Web Hosting Master
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02-18-2012, 03:44 AM #63Web Hosting Master
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02-18-2012, 08:41 AM #64Disabled
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yes, the foremost point of diversification is preservation. but, it should be possible to make a modicum of profit.
volatile times, or volatile economies (local or global) are places where small investors' money is shaken off by the big.
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02-21-2012, 11:38 AM #65WHT Addict
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history tid bit: Gypsies have invested in gold for a very long time. Not trusting banks they fashioned all their jewelry out of solid gold and literally wore the wealth with them at all times. Silver was used as jewelry for their horses.
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02-21-2012, 05:15 PM #66Disabled
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A wit...to share with electronics2011, if Gold makes you rich, in coming years, Bappi Lahiri is gonna be the richest person in India (Indians love him for that)
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02-21-2012, 05:39 PM #67Disabled
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i also think gold is a universal and best currency/investment. you rather should invest in values like gold or good properties rather than cash due to inflation. but i would also add that the prices of gold went up due to high demand of gold...
historically seen gold was always a reliable asset in time of financial crisis (big crash) or war..
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02-22-2012, 06:21 AM #68Aspiring Evangelist
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Here in Italy, not so many years ago during the war, the ownership of gold was illegal.
It wouldn't surprise me if this is going to happen again.
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02-22-2012, 08:19 AM #69Disabled
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02-22-2012, 09:37 AM #70WHT Addict
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02-22-2012, 10:02 AM #71WHT Addict
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02-22-2012, 10:16 AM #72Aspiring Evangelist
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02-22-2012, 10:49 PM #73Web Hosting Master
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02-23-2012, 02:25 AM #74VPS Hosting Guru
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02-23-2012, 02:51 PM #75Newbie
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Gold is never a bad investment in my opinion.
Another great investment at the moment is oil with the situation in Iran and syria.
This may come as a shock but in the Netherlands we pay $ 9,10 a gallon to fill up your car at the moment. So oil is the big thing :p
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