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re: The myth of gold being an inflation hedge
Posted on 8/18/09 at 1:35 pm to foshizzle
Posted on 8/18/09 at 1:35 pm to foshizzle
quote:
You have not addressed my offer. Since you think currency is not worth much but gold is, when are you ready to start unloading some more of those dollars?
My point being, that if you really have the courage of your convictions put your money where your mouth is.
I will.
0
Posted on 8/18/09 at 1:39 pm to bayoudude
Well, if you had bought a shite ton of ammo for personal arms and had been reselling it the last year you would be mopping up, the price increase has been ridiculous.
Posted on 8/18/09 at 1:39 pm to Rivers
quote:
all fiat currencies eventually fail
Sure - but they will not all fail at the same time, so why worry? That's why people don't generally keep lots of cash, they invest it in something else that *will* hold value. Such as stocks and/or real estate.
Not to mention that you can lose a lot if the dollar inconveniently doesn't fail for another 50 years.
Posted on 8/18/09 at 1:40 pm to foshizzle
I have a long term relationship with Blanchard in NO. When something is working I usually don't frick with it.
Posted on 8/18/09 at 1:44 pm to Rivers
Fellow posters, this has been real...I'm goin down to the shop and drink a couple of cool ones. Kick some tires, start up the pan head and listen to it...maybe do a burn out and hope the rest of the rivets in the rear sprocket don't let go. If they do it will be good for the economy. Have a good day all...
Posted on 8/18/09 at 1:45 pm to Rivers
As Blanchard goes, it isn't a bad gold dealer. but the problem is that you really are paying well above spot.
According to LINK they are offering 1 oz. coins for $991, and that the current spot price for gold is $940. You, my friend, are taking a 5% haircut.
By way of contrast, when I buy an ETF it probably costs me less than half a percent to do the deal. And that preserves value too.
According to LINK they are offering 1 oz. coins for $991, and that the current spot price for gold is $940. You, my friend, are taking a 5% haircut.
By way of contrast, when I buy an ETF it probably costs me less than half a percent to do the deal. And that preserves value too.
Posted on 8/18/09 at 1:48 pm to Rivers
I have a family friend who made a shite load of money from selling gold bullion that he inherited when his father passed. His father had withdrawn a few hundred thousand in the late 70's for a business deal that fell through and instead of putting it back in the bank had elected to purchase gold Kugerands.
Posted on 8/18/09 at 1:51 pm to bayoudude
Just think how much more money your friend would probably have had if he had just invested in the S&P 500 index. My best guess? At least twice as much and perhaps even four times a much, depending on when you friend's grandfather bought the gold.
Posted on 8/18/09 at 1:56 pm to LSURussian
quote:
Just think how much more money your friend would probably have had if he had just invested in the S&P 500 index
Exactly.
Owning gold in and of itself isn't the problem, the problem is that it compares unfavorably with so many other options. The S&P is probably one of them, and that isn't counting the dividends and/or interest (physically owning gold has neither).
If the dollar goes to zero and you have a well-diversified portfolio you're still fine. Gold will probably provide some insurance but it is not necessary nor does it pay off all that well. Plus it carries with it the risk of loss or theft.
Posted on 8/18/09 at 2:04 pm to foshizzle
quote:If I understand what you are saying here, let me point out that the S & P 500 index's return is calculated with dividends being automatically reinvested. So dividends are included in the total return of the index over the decades, which contributes greatly to its overall investment performance.
The S&P is probably one of them, and that isn't counting the dividends and/or interest (physically owning gold has neither).
If I misunderstood what you meant, my apologies.
This post was edited on 8/18/09 at 2:06 pm
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