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Just dumped some cash and bought gold, good or bad?
Posted on 8/15/14 at 12:49 pm
Posted on 8/15/14 at 12:49 pm
Almost pulled the trigger in 07 but was still drinking the Wall Street Casino Kool-Aid, you know when they told the public "don't panic and pull your money from equities", well if I would have bought in 07 when it was between 600-800 per oz would have made a nice gain on 50k, I know the market appears to have recovered but I hear the proverbial fan running and I smell sh!t to the tune of +100 trillion dollars in unfunded liabilities, labor participation rate of around 62.5% (when 66-67 is a good #), amnesty around the corner, how can we have such a low labor rate participation level and think if we add several million people to the labor market it's going to get the other dead beats off their azzes and off government money? Anyway just giving some insight as to why I made the decision, oh and the gold I bought was not bullion but gold coins that can not be confiscated, still considered legal tender.
Another reason I bought was the market has gone up despite the low volume in trading and the rise of the market is almost linear with TARP and "quantitative easing" in other words funny money............yeah I hear the fan running on high.
Another reason I bought was the market has gone up despite the low volume in trading and the rise of the market is almost linear with TARP and "quantitative easing" in other words funny money............yeah I hear the fan running on high.
7
Posted on 8/15/14 at 12:58 pm to JoeMoTiger
It's going one of three ways..
Posted on 8/15/14 at 1:00 pm to JoeMoTiger
A percentage of gold in ones portfolio is never a bad thing. What exact percentage is open to interpretation and personal preference.
I hold more silver than gold personally.
I'm told precious metals are foolish, but when I look at various time period charts for silver versus the S&P I don't understand this. Especially when the S&P is properly adjusted to reflect actual returns.
In any event my personal preference is a larger percentage of silver than most recommend, but I don't see a lot of serious portfolio advisors indicating to not hold any precious metals.
I hold more silver than gold personally.
I'm told precious metals are foolish, but when I look at various time period charts for silver versus the S&P I don't understand this. Especially when the S&P is properly adjusted to reflect actual returns.
In any event my personal preference is a larger percentage of silver than most recommend, but I don't see a lot of serious portfolio advisors indicating to not hold any precious metals.
Posted on 8/15/14 at 1:19 pm to JoeMoTiger
In my opinion if you're planning on holding it long term its a great move.
Posted on 8/15/14 at 1:34 pm to JoeMoTiger
You should diversify into a wide portfolio of shite that doesn't create any value and is priced way above its commercially feasible value.
I think it's a good move.
I think it's a good move.
Posted on 8/15/14 at 3:53 pm to JoeMoTiger
Would have been better with silver if you had gone that route.
You can argue that gold is overpriced whereas silver is under priced.
You can argue that gold is overpriced whereas silver is under priced.
Posted on 8/15/14 at 6:54 pm to JoeMoTiger
JoeMo
In my opinion metals are still priced a bit high and take somewhat of a beating historically as interest rates rise. That being said having a portion of your portfolio in metals aint a bad idea as the government is trying to devalue the dollar and metals can be somewhat of a hedge. I am not as sophisticated as some on this board but buy a few bars of silver monthly and gold coins on occasion. It is nice to invest in somthing tangible you can hold in your hand.
In my opinion metals are still priced a bit high and take somewhat of a beating historically as interest rates rise. That being said having a portion of your portfolio in metals aint a bad idea as the government is trying to devalue the dollar and metals can be somewhat of a hedge. I am not as sophisticated as some on this board but buy a few bars of silver monthly and gold coins on occasion. It is nice to invest in somthing tangible you can hold in your hand.
Posted on 8/16/14 at 7:37 am to JoeMoTiger
Value of gold is completely arbitrary. It doesn't create wealth, it doesn't multiply, it doesn't pay you interest...it just sits there and waits for people to decide it's worth more or less.
It is not an investment, it is speculation.
If you want to speculate, fine, but don't pretend you're 'investing' in something.
Gold has made a big run since this story was done in 2007, but numbers are still mostly valid:
"In case you're one of those folks, here is some food for thought: Even though gold has spiked sharply in value recently, it hasn't been a long-term winner for most investors. According to University of Pennsylvania finance professor Jeremy Siegel in his seminal book Stocks for the Long Run, here's what a dollar invested in various things would have grown to, from 1802 to 2001. (Amounts have been adjusted for inflation.)
Stocks: $599,605
Bonds: $952
Bills: $304
Gold: $0.98
some shorter time frames.....so those pretty little coins returned 3%/yr over a 25 yr period
..........................gold stocks
1982-2007 (25 years) 3% 11%
1987-2007 (20 years) 2% 8%
1992-2007 (15 years) 5% 9%
1997-2007 (10 years) 8% 5%
2002-2007 (5 years) 18% 13%
Gold doesn't always shine
It is not an investment, it is speculation.
If you want to speculate, fine, but don't pretend you're 'investing' in something.
Gold has made a big run since this story was done in 2007, but numbers are still mostly valid:
"In case you're one of those folks, here is some food for thought: Even though gold has spiked sharply in value recently, it hasn't been a long-term winner for most investors. According to University of Pennsylvania finance professor Jeremy Siegel in his seminal book Stocks for the Long Run, here's what a dollar invested in various things would have grown to, from 1802 to 2001. (Amounts have been adjusted for inflation.)
Stocks: $599,605
Bonds: $952
Bills: $304
Gold: $0.98
some shorter time frames.....so those pretty little coins returned 3%/yr over a 25 yr period
..........................gold stocks
1982-2007 (25 years) 3% 11%
1987-2007 (20 years) 2% 8%
1992-2007 (15 years) 5% 9%
1997-2007 (10 years) 8% 5%
2002-2007 (5 years) 18% 13%
Gold doesn't always shine
This post was edited on 8/16/14 at 7:41 am
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