How is gold a good investment?
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ItsTime
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Ya thats my point. $800 might buy good tires on a car now.
sigh...fyi...it was $35 in the 70s
ItsTime
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ChickenHawk
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Gold isn't an investment.
ItsTime
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So its just protection against a dollar collapse?
ImpeachKingGeorgeII
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Yes.
dannno
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That's right, it is a storage of value.
Even Ron Paul said, "buying gold per se should not be touted as a good investment."
http://www.lewrockwell.com/paul/paul445.html
But look what's in his portfolio
ItsTime
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The confusion came from hearing everyone say "invest in gold" I believe even Peter Schiff uses the word "invest". So I guess if one believes the dollar will collapse then go out and buy a shit load.
I think this thread will help a lot out. I know Ive been asked this question before and I really did not have an answer besides to protect against a dollar collapse.
I think this thread will help a lot out. I know Ive been asked this question before and I really did not have an answer besides to protect against a dollar collapse.
tmosley
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The reason it collapsed bak then was because the Fed finally put a break on interest rates, and rose them into the double digits, greatly increasing the strength of the dollar overnight, and leading to stagflation.
It is no longer feasible, given our enormous debt loads, to put the breaks on like that. It would cause deflation of catastrophic proportions, and probably plunge the US into Civil War within a couple of weeks. Rates will stay low so long as Bernanke is in office, and gold will continue to increase. Eventually, when faith in the dollar evaporates, hyperinflation will take off, and holders of gold will be in good shape.
Right but when gold goes from $35 to $800 you would feel stinky rich...if you didn't get out you were stupid. If you hung on then yeah you got screwed.
Right now $800 / oz isn't feeling very stinking rich. That's why many say it should just go that much higher yet.
ItsTime
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That makes sense
There will be a time when we are told to sell. Jim Sinsclair is implying that time will be $1600-$1700
Schiff is a bit contradictory in saying $5,000-$10,000 or something crazy like that. Even though Jim is negative on the US I don't think he is even that negative.
Dr.3D
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I would guess that all depends on how hard the dollar falls.
It could fall to nearly no value at all and in such a case the dollar price of gold would be nearly infinite.
seapilot
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This is correct. Think of it as an insurance policy that one never hopes to have to use. Buy it , forget about it until there is an emergency. Unlike lehman stock or Enron it will always have some value, in dollars, ameros or other fiat.
It can also be bartered with and handed down through generations avoiding the death tax. Never know when it may come in handy for passage to a safer place as they used it in WW2 in europe.
we must be looking at different graphs
no, you're just blind. Look at the graph again in 1970. Gold started at $35. Maybe you should pick a better starting point to determine whether gold is a good hedge against inflation.
honestly, no one can make a bold prediction that's going to be on target. Gold can go as high as it wants depending on how stupid the fed is. All we know is, it's going up. Where it stops, nobody knows.
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