Assuming you could properly value gold, I think there's been so much talk about it that it's gotta be too expensive since many are jumping into it. If everyone knows it's a good investment then it's probably too late to invest.
Hunter Nuttall
· 1 year ago
What gets me about gold is how people will say "Look how well gold is doing! It's at a 20-year high!" Translation: its cumulative return over the last 20 years was 0%.
fathersez
· 1 year ago
I think this post should create a very lively discussion.
I am sure many of us may not equate owning gold to the ability to buy gum at the local supermarket.
Indians buy gold by the proverbial busload and not as a means of producing income. Does this inability to produce income mean that gold is worthless? I am not sure if this would be a fair definition.
Anyway, I am really curious to see the other responses.
Mrs. Micah
· 1 year ago
While people say it's good for a down market, so are bonds...and those "make sense" like stocks do.
coddigus
· 1 year ago
Yo Brip.
I disagree with this partially. Yes, gold is an abstract symbol from whence our abstract symbol was once based on. However, gold and silver are both good investments. Alas when people hear the term investment they think profit-grower, not so with gold. With gold what you're doing is stabilizing your income. It's what you said. The American dollar and most other currencies today are based on faith alone and that is how the system works on their weird topsy turvy money religion. Alas, gold the faith is never shooked. They're the best church to subscribe to when it comes to times of currency paranoia (Such a flailing dollar before its new master the euro. Or canadian dollar even)
If you had bought gold your income would've stayed relatively the same and which you could've traded all that gold out for another currency such as the euro once it overpowered the dollar. Or if it did not overpower the dollar you still have tons of gold worth the same, which is exactly what the investment is for. Stabilizing the income, not growing it.
It's like life insurance, it's a shelter for your earnings, or a fail safe incase that special substance hits the fan.
My two cents!
Great post! And is that my golden drink in your picture? Oh the Aztecs would laugh now if they only could see...
-Greg
Solar Yard Lights
· 1 year ago
Hunter Nuttall, say if in 2000 gold was at 400, then in 2001 it was 500$ then in 2002 at 600. Well in 2002 it was at it's highest point but each year the cost of it increased, bringing increasing returns each year.
Hunter Nuttall
· 1 year ago
SYL, what I'm saying is that if gold was at 400 in 2000, 500 in 2001, and 600 in 2002, it looks like it's doing well. But if it was at 600 in 1982 when you bought it, you've only broken even as of 2002.
The phrase "gold is at a 20-year high" sounds impressive, but all it means is that it hasn't appreciated over the last 20 years (start to finish), which doesn't make it look like a good investment. A hypothetical investment that always goes up will always be at an all-time high, never a 20-year high.
Solar Yard Lights
· 1 year ago
Well it depends on where you label your start and end lines. When you jump in and jump out.
Hunter Nuttall
· 1 year ago
You're right SYL, you can make good money in gold, if you know when to jump in and out. Personally, I have no idea how to time the gold market.
Solar Yard Lights
· 1 year ago
Same here haha.
Danny Tsang
· 1 year ago
Gold can't be rented out for a monthly income, gold can't power our cars or the energy we need to sustain our economy, gold can't be eaten. I don't know what gold is good for besides looking pretty on a Rolex or a ring. Therefore I never understood how gold can be treated as an investment. The only way its a wealth preserver is if you believe that the US dollar and perhaps worldwide currencies and economies will continue to deteriorate. "gold is at a 20 year high" doesn't say much because 20 years is a very long time.
Steve (Brip Blap)
· 1 year ago
I think Hunter and Danny are both making similar points and I agree completely - unless you really knew when to get in and out of gold (i.e. actively traded) there is just NO money to be made. It's at a 20 year high now, great, but the chances it will grow at 8% per year like (theoretically) the stock market does are pretty slim over the long run, based on its history.
Better to invest in a gold mining company than in gold itself (if you don't mind ethical questions about how they mine gold).
Early Retirement Extreme
· 1 year ago
I think gold could be considered a short on the morality/integrity of fiscal and monetary policy of the world's governments. As such it definitely has value ;)
buyraregoldcoins
· 8 months ago
Ya, but adjust for inflation, gold is relatively low in price
All Comments
I am sure many of us may not equate owning gold to the ability to buy gum at the local supermarket.
Indians buy gold by the proverbial busload and not as a means of producing income. Does this inability to produce income mean that gold is worthless? I am not sure if this would be a fair definition.
Anyway, I am really curious to see the other responses.
I disagree with this partially. Yes, gold is an abstract symbol from whence our abstract symbol was once based on. However, gold and silver are both good investments. Alas when people hear the term investment they think profit-grower, not so with gold.
With gold what you're doing is stabilizing your income. It's what you said. The American dollar and most other currencies today are based on faith alone and that is how the system works on their weird topsy turvy money religion. Alas, gold the faith is never shooked. They're the best church to subscribe to when it comes to times of currency paranoia (Such a flailing dollar before its new master the euro. Or canadian dollar even)
If you had bought gold your income would've stayed relatively the same and which you could've traded all that gold out for another currency such as the euro once it overpowered the dollar. Or if it did not overpower the dollar you still have tons of gold worth the same, which is exactly what the investment is for. Stabilizing the income, not growing it.
It's like life insurance, it's a shelter for your earnings, or a fail safe incase that special substance hits the fan.
My two cents!
Great post! And is that my golden drink in your picture? Oh the Aztecs would laugh now if they only could see...
-Greg
The phrase "gold is at a 20-year high" sounds impressive, but all it means is that it hasn't appreciated over the last 20 years (start to finish), which doesn't make it look like a good investment. A hypothetical investment that always goes up will always be at an all-time high, never a 20-year high.
Better to invest in a gold mining company than in gold itself (if you don't mind ethical questions about how they mine gold).