EPTInvest in gold? - Page 2
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JimSocks
United States968 Posts
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Simplistik
2146 Posts
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SwiftSpear
Canada355 Posts
On December 12 2010 13:23 Chylo wrote: Random people asking if they should buy some random investment on a website totally unrelated to investing is a classic sign of a bubble. Smart people were buying gold in 2003, not now when random kids on starcraft forums think it's a good buy. Could you still make money in gold and could it still go up more? Yes, but the risk is quite high. Also buying gold is not investing, it's speculating. Unless you understand the difference you shouldn't be buying either investments or speculative products. This. | ||
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Kiarip
United States1835 Posts
Obviously, some time after that their currency too will make a dip once we can no longer afford to buy even their products. this is just my opinion/speculation though | ||
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Froadac
United States6733 Posts
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StorkHwaiting
United States3465 Posts
On December 12 2010 13:44 Simplistik wrote: The current rise is not due really due to any fundamental value increase. It's just that a lot of currencies have been struggling since the financial crisis. The dollar is weak and the American government keeps printing money. The Euro is in all sorts of trouble. I would say that the Gold (and Silver) prices are in for some kind of correction. Of course I don't know when, if I did then I'd make a killing. Just be careful. Getting 3% to 5% from safer government bonds isn't a bad investment. Bonds are another bubble waiting to burst right now, specifically because people think it's not a bad investment during these times of instability. Confidence in the dollar continues to drop. Just wait for China to balk at buying bonds, bond bubble is gonna go POP in a big way. Then oh it's GG USA | ||
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reg
United States134 Posts
On December 12 2010 13:35 ThaZenith wrote: Gold is trading for more than it's worth tbh. Gold is worth whatever aggregate demand deems it to be worth. If the current trend of government intervention continues it would be a worthwhile investment. | ||
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hypercube
Hungary2735 Posts
Hint: You can actually find the answer to that question on the graph. The only way this analysis could be wrong is if gold was a scarce industrial resource. But I doubt it is. Most of it is probably held by "investors" who will start panic selling the moment they see the price starting to go down. | ||
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SnK-Arcbound
United States4423 Posts
Gold "investments" are speculation. If you live in america and you think the USD is going to be inflated to the moon, you put money into gold. If you want to make money, invest any any country that you don't think doesn't have massive problems with their economy. I like China, Canada, and Australia. the CAD and AUD are both at 1:1 with the USD, which can be either the USD going down or the CAD and AUD going up, either way if you live in the US they are good investments. If China depegs from the USD expect the value of the Yuan to skyrocket. On December 12 2010 13:54 hypercube wrote: Come on people look at that graph. That's how a bubble looks like. It might go on for a few more years, in which case investing will have been a good idea or it might burst literally in a few weeks. Actually, scratch that, there's no way this kind of growth will go on for 2 more years. And when the growth slows down all those people who bought hoping for a quick buck will decide to cash in. Guess what happens then? Hint: You can actually find the answer to that question on the graph. The only way this analysis could be wrong is if gold was a scarce industrial resource. But I doubt it is. Most of it is probably held by "investors" who will start panic selling the moment they see the price starting to go down. This is wrong, a bubble includes speculation. The value of gold is going up, but not the value of gold stocks, which would suggest there is no speculation, and thus no bubble. Gold isn't worth more, the dollar is worth less. | ||
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reg
United States134 Posts
On December 12 2010 13:54 hypercube wrote: Come on people look at that graph. That's how a bubble looks like. It might go on for a few more years, in which case investing will have been a good idea or it might burst literally in a few weeks. Actually, scratch that, there's no way this kind of growth will go on for 2 more years. And when the growth slows down all those people who bought hoping for a quick buck will decide to cash in. Guess what happens then? Hint: You can actually find the answer to that question on the graph. The only way this analysis could be wrong is if gold was a scarce industrial resource. But I doubt it is. Most of it is probably held by "investors" who will start panic selling the moment they see the price starting to go down. You're judging the longest held commodity in relation to a 30 year graph? Do you even know why gold prices feel in 1982? Even during the depression stocks gave a return on investment. Gold is no exception and it will continue to rise in some fashion. Whether or not there will be a stutter is another topic entirely. Its not a bubble. One hundred year graph of gold: ![[image loading]](http://bailout.uslaw.com/wp-content/uploads/2008/11/100_year_dow_bull_bear_periods.jpg) | ||
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KevinIX
United States2472 Posts
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maellestrom
United States194 Posts
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Loanshark
China3094 Posts
Much better sources out there than some guys on a Starcraft forum adding in their own opinions which may or may not be informed. | ||
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stanik
Canada213 Posts
![[image loading]](http://img51.imageshack.us/img51/2170/goldalldataousd.png) These graphs are not the same. They are actually very similar looking execpt one is 1973-2010 and the other is 1900-2004. | ||
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hypercube
Hungary2735 Posts
On December 12 2010 14:00 reg wrote: You're judging the longest held commodity in relation to a 30 year graph? Do you even know why gold prices feel in 1982? Even during the depression stocks gave a return on investment. Gold is no exception and it will continue to rise in some fashion. Whether or not there will be a stutter is another topic entirely. Its not a bubble. Nope, but I'm guessing the oil crisis triggered buying, which lead to a bubble. I can see no reason why the price would drop 50% in a few month in 1980. Anyway, can you explain why your graph doesn't match OP's? Or the one I could find on wikipedia? And it's not just the log scale either. edit: or the different timescale. It's completely different even in the common time interval. | ||
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reg
United States134 Posts
On December 12 2010 14:13 stanik wrote: These graphs are not the same. They are actually very similar looking execpt one is 1973-2010 and the other is 1900-2004. I know... I even said so in my post. Thats the point. Gold is on a steady increase despite what happened in 'X' year. | ||
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reg
United States134 Posts
On December 12 2010 14:22 hypercube wrote:Nope, but I'm guessing the oil crisis triggered buying, which lead to a bubble. I can see no reason why the price would drop 50% in a few month in 1980. It wasn't a bubble. Reagan was in office when gold began its steady decline. You'll notice gold stocks decrease when the dollar increases or vice versa (and it does so relatively smoothly). It just means good fiscal and monetary policy was present during the Reagan administration that isn't present now. | ||
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cskalias.pbe
United States293 Posts
If anything I would trade on sudden events, psychology causes people to overreact and you can capitalize by being a contrarian. | ||
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hypercube
Hungary2735 Posts
On December 12 2010 14:00 reg wrote: Gold is no exception and it will continue to rise in some fashion. Whether or not there will be a stutter is another topic entirely. Its not a bubble. Oh BTW, just because the price has a long term upward trend doesn't mean it's not a bubble. Bubble just means that a significant portion of the buyers is motivated by a quick rise in prices in recent history. These people will sell the moment they feel something is up. And then you can wait for 20-30 years for the "natural" upward trend to catch up with what was a very much inflated price. | ||
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CaptainFwiffo
United States576 Posts
I mean, even if you really want to go with commodities, is there any particular reason why gold and not, say, molybdenum? | ||
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