EPTInvest in gold? - Page 3
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Stoids
United States636 Posts
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KevinIX
United States2472 Posts
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Milkis
5003 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. http://www.google.com/finance?client=ob&q=INDEXDJX:DJI check 1970 ~ present. there's no reason to prefer gold | ||
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EvilNalu
United States91 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. Curious to hear your thoughts. Does it not bother you that the outlandish claims about historical prices in your first paragraph are contradicted by the chart you posted? Click here for an inflation-adjusted graph of the price of gold. Although there are ups and downs, it is a fairly flat graph. Note that if you had purchased gold 30 years ago, the real value of your gold today would be around half of what is was 30 years ago. Now look here for an inflation-adjusted chart of the S&P 500 index. Note the logarithmic scale on the y-axis. If you had invested your money in the S&P 500 30 years ago, the real value of your holdings would be about 10x what you invested. Moral of the story: gold (and precious metals in general) are horrible long term holdings. | ||
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siri
Portugal129 Posts
Q4: Precious metals investing Do you invest in precious metals? My brother monitors the ups and downs of gold and silver value on a daily basis. It is his private passion. Through this obsession he has been urging me to get involved and notifies me when it’s a good time to buy. Is this worth my time and money? Would it really count as diversifying my portfolio? - Linda I don’t invest in precious metals. They’re too volatile and speculative to have much interest for me, and they’re currently riding a bubble fueled by people who are quite willing to advertise on behalf of gold investments on talk radio stations. Gold and silver are riding high at the moment, but at some point, those buyers will become sellers. Remember, gold isn’t like a stock or a bond – it doesn’t return dividends or payments to you for merely holding it. At some point, buyers will want a return on investment and they will sell. If you want to include precious metals as part of your portfolio, make sure it’s a small part and make sure your whole portfolio is well-diversified. + Show Spoiler + http://www.thesimpledollar.com/ hope i help ^^ | ||
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Tnerb
United States141 Posts
Basically gold/silver is a great way to insulate yourself against inflation. It isn't going to get you rich quick or any nonsense like that instead it is a great way to keep the value of your money in times of financial instability. | ||
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LaptopLegacy
Netherlands602 Posts
On December 12 2010 14:00 reg wrote: fypYou'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 ![[image loading]](http://bailout.uslaw.com/wp-content/uploads/2008/11/100_year_dow_bull_bear_periods.jpg) < picture unrelated > | ||
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Two_DoWn
United States13684 Posts
The point in investing is to make money- so you buy low and sell high. By buying something when the price is already high, you are just asking the price to fall and to lose money. | ||
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SnK-Arcbound
United States4423 Posts
On December 12 2010 18:42 Two_DoWn wrote: No. Do not invest in anything with a high price already. Ever. The only way the price will go is down, and you will lose a lot of money. Trust me, im a 4th year econ student in university. The point in investing is to make money- so you buy low and sell high. By buying something when the price is already high, you are just asking the price to fall and to lose money. I'm sure Ben Bernanke has a lot of scholastic achievements, yet he's been wrong consistently for the past 10 years. Appealing to authority is a terrible way to make an argument. As a 4th year econ student you don't even seem to understand that making money has very little to do with buying low and selling high, other than trying to turn over stocks to make a profit. That isn't an investment. | ||
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TheGiftedApe
United States1243 Posts
Also you are about 7 years late for the gold rush....... | ||
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UniversalSnip
9871 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. Haha, man, I've heard this before. 'Guys you can see things are trending positive on x for the last kajillion years, yes there may have been a few stutters, but as you can see my graph is basically just a big arrow pointing upwards.' The 'stutters' are what actually matter. | ||
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Manimal_pro
Romania991 Posts
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THE_DOMINATOR
United States309 Posts
dont invest in uranium either...thats already startin to cut back | ||
Empyrean
17015 Posts
On December 12 2010 15:03 EvilNalu wrote: Does it not bother you that the outlandish claims about historical prices in your first paragraph are contradicted by the chart you posted? Click here for an inflation-adjusted graph of the price of gold. Although there are ups and downs, it is a fairly flat graph. Note that if you had purchased gold 30 years ago, the real value of your gold today would be around half of what is was 30 years ago. Now look here for an inflation-adjusted chart of the S&P 500 index. Note the logarithmic scale on the y-axis. If you had invested your money in the S&P 500 30 years ago, the real value of your holdings would be about 10x what you invested. Moral of the story: gold (and precious metals in general) are horrible long term holdings. Why has no one bothered to respond to this post yet? It's one of the better ones in this thread. | ||
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acker
United States2958 Posts
If gold is in a speculative bubble, one of the few obvious signs should be a marked increase in hoarding. If anyone has graphs on this or any of the signs associated with hoarding (like increasing inventories), I'd be thankful for a link. | ||
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mindspike
Canada1902 Posts
On December 12 2010 15:00 Milkis wrote: http://www.google.com/finance?client=ob&q=INDEXDJX:DJI check 1970 ~ present. there's no reason to prefer gold Oh ya...two can play that game. Try 2005-present (past 5 years which is relevant to us because a good majority of us had the means to invest even $100) 170% vs 5% in case you're too lazy. | ||
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Zarathusta
United States114 Posts
On December 12 2010 19:34 Empyrean wrote: Why has no one bothered to respond to this post yet? It's one of the better ones in this thread. This is absolutely true. Gold is a hedge against a bear market and inflation. If you have a ton of cash lying around, and are not willing to invest in something "risky" like stocks, then you are better off buying gold so that your money can keep pace with inflation, which is sure to continue with the Fed's current activities. Otherwise with an optimistic outlook on the future, invest in stocks or if you don't feel comfortable picking stocks individually pick a low cost index fund. Moral is, whatever you consider investing in, do extensive research into it. You need to know whats happening to your money!!! | ||
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Klive5ive
United Kingdom6056 Posts
On December 12 2010 19:34 Empyrean wrote: Why has no one bothered to respond to this post yet? It's one of the better ones in this thread. I completely agree. It's the most important point in this thread. It dispels two myths in one go. Myth 1: Gold is a good long term investment. Myth 2: Gold is overpriced and in a bubble. If you invest in Gold you're betting against the Dollar. The argument that Gold has no real value doesn't make sense. You can't print Gold and it's a rare but stable commodity. Looking at the American economy and possible exit strategies for the huge amount of debt that needs to dealt with, all possible strategies are frightening. With unemployment already so high what will happen when you have to start cutting Government spending or raising taxes? I personally cannot see a situation where the gold price falls in the medium term. The reason it's not shooting up is because private owners selling it very fast. Once this "cash for gold" train runs out and the supply of private gold goes down, that can only contribute to gold rising further. Beyond the medium term anything can happen but personally I think gold is a good investment for the next year at least. | ||
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FabledIntegral
United States9232 Posts
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Goobus
Hong Kong587 Posts
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