EPTJust like how that loaf of bread at the supermarket gets more expensive every year.
Invest in gold? - Page 11
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iPlaY.NettleS
Australia4315 Posts
Just like how that loaf of bread at the supermarket gets more expensive every year. | ||
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ShLiM
Bulgaria178 Posts
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iPlaY.NettleS
Australia4315 Posts
On January 03 2011 18:53 ShLiM wrote: that is not smart, as you can see from the graph there is a 30yrs break even situation, that +inflation, is making it -EV Stocks didn't break even from the 1929 high until around 1954. It took 20% interest rates in 1980 to crash gold , if they raise interest rates to 20% now i will eat my hat. | ||
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Grend
1600 Posts
On December 12 2010 12:47 tx.zyclon wrote: Over the times gold has been worth much to many. Sifting through the internet on the price of an ounce of gold it has gone up consistently every year for atleast 50 years. Going from 20 dollars about 30 years ago to 1450ish in 2010. Many economists say that with the falling of the USD that gold may be worth up to 50,000 in a short while. If you guys had an extra 20,000 or even a 1,000 saved. Do you think it is a wise idea to invest in gold? Even if it doesn't go to 50,000 dollars, Even people 30 years ago who maybe spent 1000 dollars for 50 ounces of gold, can now trade it in for 70,000 dollars. ![[image loading]](http://img51.imageshack.us/i/goldalldataousd.png/) Curious to hear your thoughts. Looks like youre already too late. Unless you want to go bear ofcourse. | ||
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Jago
Finland390 Posts
On January 03 2011 20:19 iPlaY.NettleS wrote: Stocks didn't break even from the 1933 lows until around 1954. This is true, if you invested a huge lump sum into stocks in early 30-ies and then just sat on it until 1955, it must've sucked pretty hardcore to be you. But if you were a sensible person and instead put away a little sum every single month throughout that very same period, the outcome would've been rather different. | ||
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iloveav
Poland1475 Posts
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JeanLuc
Canada377 Posts
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Krallin
France431 Posts
Gold is usually negatively correlated with stock prices, this is why it increased a lot during the financial crisis (and might still go up for some time). Now, although one can't tell the future, it is probably a little bit too late to invest in gold now (unless you have reasons to expect a double dip recession). On why gold is negatively correlated with stocks (the stock market): - When stocks go down, it is usually because the economy is not doing great, hence, there is a lot of uncertainty (and by this, I mean possibility of default on stocks and currencies). - That's why people would rather buy gold, because the nice thing with gold is that whatever happens, you still have gold, which has an intrinsic value, which is not the case for currency and stocks). - Hence, demand rises, while at the same time, offer decreases (people who have gold would rather keep it). Therefore, prices rise. You can observe the same phenomenon on most precious materials (ie. not directly industry related, like oil or silicium) like silver or platinum. | ||
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iPlaY.NettleS
Australia4315 Posts
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iPlaY.NettleS
Australia4315 Posts
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BrTarolg
United Kingdom3574 Posts
On January 03 2011 21:58 Krallin wrote: Gold is usually negatively correlated with stock prices, this is why it increased a lot during the financial crisis (and might still go up for some time). Except for the end of 2008? --- Also i think id like to point out to some people on this thread, gold DOES have a use, its shiny, pretty, and people like wearing it. This will always be the case and has been since the beginning of time, if not even moreso. Asians and indians frickin LOVE gold, way more than western society. Sure, its not exactly "useful", but from an economic point of view thats just as good as a "useful" demand for a product - gold derives its underlying value from the fact everyone likes wearing gold, its pretty and shiny etc. For those of you actually interested in bubbles and the like, you should probably do research on bubble indicators. You would be interested to know that indicators which pop up for all bubbles (like the housing market, even tulips, though less numerically reliable in the second case) , indicate that gold (and other commodities) are NOT in a bubble. | ||
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greenDron
Korea (South)94 Posts
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BrTarolg
United Kingdom3574 Posts
On January 03 2011 23:24 greenDron wrote: do you just invest in the gold? I figure a necklace or something would have little resale value... so i need gold stocks... i'm gonna call it here: gold will continue to go up On the contrary, depending on where in the world you are, it is very easy to get full value for your gold at market price in cash. (say if you have a pure gold necklace) It is also very easy to get market value gold for cash Gold is surprisingly liquid in that aspect | ||
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Yurie
11679 Posts
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bpizzle
United States4 Posts
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IamBach
United States1059 Posts
Please dont! There is a giant price bubble that will probably burst pretty soon. Imo, short gold. Its the smartest thing to do right now | ||
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Treemonkeys
United States2082 Posts
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QuanticHawk
United States32027 Posts
On December 26 2010 07:28 Jibba wrote: The absolute worst thing you could do is take financial advice from a random TeamLiquid poster, regardless of whether they tell you to buy gold, rocks or magic fairy dust. Come on people... This is important. And it's also indicative of something that's fairly bubbly right now when it latches on a popular forum... Also, there's absolutely no logic in gold speculating unless you're gonna drop down a lot of money, like five figures or something. At 1,400$ish a pop, you'd need to to go up a real lot to make anything. If you had $10k to blow, you'd be better spent putting it in silver, since that going up just a $1 or $2 would make you some cash. Not to mention that precious metals in general are way overdue for a correction. They'll still remain fairly high because the general world economy still sucks, but metals haven't taken a big hit in a while. What was it, two years ago, silver was up to $18-20 range and I went away for vacation for a week. I came back and it was half through a slide back down to $12-13. | ||
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DarkRise
1644 Posts
also obama will print money without any gold value back up As you can see a lot of TV ads buying old jewelry (gold) for a high price | ||
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Acytota
United States3 Posts
gtfo | ||
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