Invest in gold?

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.

On December 12 2010 12:49 n.DieJokes wrote:
Yea but at the rate particle physics is advancing what if in the next thirty years they come up with cost efficient ways to add protons to atoms, then you're boned

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.

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.

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.

On December 12 2010 13:35 ThaZenith wrote:
Gold is trading for more than it's worth tbh.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

One hundred year graph of gold the Dow Jones index:

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.

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.

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.

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

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.

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.

On December 12 2010 20:38 funk100 wrote:
best time to buy gold was when the chancellor of england decided it was time to sell it off in 1999, as you can see from the graph gold prices were at there lowest point as such a vast amount of gold went on the market.

gorden brown is pretty silly, with hindsight.

The price of gold fluctuates around an inflation corrected mean. If you buy gold when it's far above its mean (like now or 1980) and hold it, there is a good chance you will *never* make an inflation corrected profit. The people who bought in 1980 are still like 600$/oz away from inflation corrected break-even.

On December 12 2010 14:28 reg wrote:


I know... I even said so in my post. Thats the point. Gold is on a steady increase despite what happened in 'X' year.

On December 12 2010 19:10 TheGiftedApe wrote:
All The people who bought gold in 1980 and then sold i in 1983 haev a lesson to teach you about economics.

Also you are about 7 years late for the gold rush.......

On December 12 2010 23:09 iPlaY.NettleS wrote:
Sorry but until the US raises rates i see gold only going one way.
And having your money in something like gold is a heck of a lot better than keeping it in cash when theres high inflation around.

On December 12 2010 12:58 mainerd wrote:
my friend inherited some money and has been buying silver and copper, he seems to think them better investments than gold

he likes to trade with people for their penny hordes, sort the copper pennies out into their own container, then use the newer pennies to buy more unsorted pennies from ppl... he's got a nice bucket full of shiny coins so far

On December 12 2010 23:15 stanik wrote:


My point was one of the graphs are not accurate. Take a look at 1993. One graph says a value of 400 and the other graph says 1000.

Someone labeled the graphs inaccurately.

On December 13 2010 03:48 sikyon wrote:
I actually really hate the fact that gold is traded as a precious metal commodity since I'm trying to use it right now to synthesize some gold-coated nanoparticles and it's mad expensive.

On December 12 2010 13:39 WAAA wrote:
I like how the graph doesnt deal in real dollars... my advice is if you have to ask a gaming forum do not invest in anything.

On December 13 2010 03:55 Hatsu wrote:


If it makes you feel better, other metals such as iridium skyrocketed even more, it's not just precious metals.

On December 13 2010 04:05 Simplistik wrote:

Unlike gold, there's actually a reason for the iridium price increase! Over the last few years new applications for iridium have been coming around. Some of those applications (like touch screens and LEDs) are mass markets. Iridium is pretty scarce so the price goes up! Gold on the other hand...

On December 13 2010 04:05 Simplistik wrote:

Unlike gold, there's actually a reason for the iridium price increase! Over the last few years new applications for iridium have been coming around. Some of those applications (like touch screens and LEDs) are mass markets. Iridium is pretty scarce so the price goes up! Gold on the other hand...

On December 12 2010 14:00 reg wrote:

One hundred year graph of dow:

On December 12 2010 12:49 mprs wrote:
I wonder what that graph looks like with inflation adjustments. Regardless, I don't see what the harm is until people can start synthesizing gold. Once that happens, you are kinda screwed.

I would invest in Iridium tbh :D

On December 13 2010 04:05 Simplistik wrote:

Unlike gold, there's actually a reason for the iridium price increase! Over the last few years new applications for iridium have been coming around. Some of those applications (like touch screens and LEDs) are mass markets. Iridium is pretty scarce so the price goes up! Gold on the other hand...

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.

One hundred year graph of gold:

On December 13 2010 04:50 micronesia wrote:
If you invest in gold, silver or something else, how does that actually work. Like, if you invest 20,000 dollars in gold 'they' don't just mail you some bricks right? LOL

Are you just giving money to a company to store the materials in a super safe deposit box or something?

On December 12 2010 19:46 mindspike wrote:



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.

On December 13 2010 05:10 redtooth wrote:
lol @ people with 0 econ knowledge coming in here and speculating shit.

On December 12 2010 12:47 tx.zyclon wrote:
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.

On December 13 2010 06:37 MoltkeWarding wrote:
Apparently I'm supposed to buy gold only when gold is in a bubble, and I'm supposed to do research into stocks which I think will go up, but under no circumstances is it legitimate to think that gold will go up, because nobody knows.

Isn't the point of doing any kind of research to identify those items which other people are underbuying and underpricing?

What's the point of investing, if you are not prepared to go against some trend or another?

On December 12 2010 12:57 Tufas wrote:
They are planning on putting one in a city/town where I used to coach rich russians on how to skii while drunk.

Zell am See in Austria ... beautiful with a lake and mountains ...

On December 13 2010 04:10 Almin wrote:

Not true, plenty has been found in Canada, South America, and in Afghanistan.

Canada and SA is easy to mine, but Afghanistan...GL lol, point is, it's not that rare if Canadians are mining it at a massive amount.

On December 13 2010 06:30 Squisha wrote:
wouldn't it be even more clever to invest in some big gold mine companies down in mexico for example, because those are the ones who will make the most profit out of a rising gold price

On December 12 2010 18:49 SnK-Arcbound wrote:

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.

On December 13 2010 08:15 Two_DoWn wrote:

It is an investment. You are spending money in order to make a return. If you say that buying gold isnt an investment, you clearly have no idea what you are talking about.

On December 13 2010 09:33 sikyon wrote:


Buying gold without detailed market knowledge is basically gambling. There is a difference between gambling and investing. When you invest in something, you are putting capital into it, believing that it's value will grow over time. When you don't know what you're doing with it and just putting money into it, you are gambling.

I'd be happy to be shown wrong, however, if perhaps you could cite me a reference as a 4th year econ student.

On December 13 2010 08:03 kzn wrote:
Let us get one thing straight: gold is not an investment. It is speculation.

When you put $1000 into gold, you are not investing in gold. To invest in gold, you'd have to put $1000 into a gold mine. What you actually do is you just buy $1000 worth of gold at current prices. The only way you make a return on that is if gold goes up in value, thus its speculation on the value of gold.

Second point: very few people have ever beat the market by speculating. If you aren't a huge expert on the uses of gold, the demand for gold, the supply, and so on and so forth, your expected value of "investing" in gold is 0% return.

It is, quite simply, a terrible idea unless you are hedging against inflation, and even then it is one of the worse ways of doing that.

On December 13 2010 09:59 hypercube wrote:


But...
how are even those few to make money if there are no less knowledgable players on the market?

That's why it's absolutely crucial that people invest in gold (or anything else they have no idea about).

On December 13 2010 07:08 Lucidx wrote:
This doesn't seem very legitimate to me. Talk to a financial adviser.

On December 13 2010 07:58 Simplistik wrote:


Could you please tell me what you mean by "plenty"? As far as I know nobody mines for Iridium anywhere. People mine for Platinum in South Africa; Iridium is a by-product. Many Nickel and Copper deposits also yield some Iridium. In Canada there might have been some Palladium mining which would normally also yield some Iridium.

The annual production of Iridium last year was something like 2600 kg. The concentration in many deposits is only a few parts per billion. Allow me to repeat myself: Nobody mines for Iridium.

If you would like more information regarding Iridium (and other Platinum Group Metals) check out:
http://platinum.matthey.com/publications/

On December 13 2010 10:05 j0k3r wrote:
Unlike gold, copper actually has many many uses esp. in network technology. If I were to speculate I would purchase a commodity whose demand is a function of production that is predicted to rise. I do not like speculating in assets whose values are derived from human beliefs ( such as gold or currency ). The global demand for copper is not going down anytime soon. China is just now starting to mine domestic copper from their northwestern regions, laying down highways between the mines and the cities. Copper is itself a great speculation asset because prices are volatile and there are theoretically arbitrage opportunities if you know what you're doing.

Article on commodities:

http://online.wsj.com/article/SB10001424052748704058704576015332264106072.html?mod=googlenews_wsj

On December 13 2010 09:50 eVaDe[Clean] wrote:


No, speculating is buying something, anything, that doesn't yield a specific return. Buying gold is speculating because it doesn't pay a dividend. Buying many stocks on the Dow is also speculating as a lot of them don't pay a dividend. Buying a house is speculating unless you are renting it out and sustaining a positive return against your mortgage payment after insurance, maintenance, and vacancy.

It doesn't really matter that much whether you are investing or speculating as long as you know what you are doing and why you are doing it. The price at which you buy an asset is also somewhat irrelevant. You don't make money by buying low and selling high. You make money by buying when you yield a high return or expect to sustain high appreciation and selling when you no longer are achieving either of these things.

On December 13 2010 10:29 sikyon wrote:
So if I buy a lottery ticket I'm speculating?

You can only "speculate" if you have some reasonable reason to believe that the value of the item is going to appreciate (or depreciate if you're shorting). Going in blindly or without good reason is tantamount to gambling.

On December 13 2010 08:17 jstar wrote:
As a finance major, reading through this thread makes me rage.

If you want to invest but have no financial or economic knowledge, PLEASE find a broker. There's much more than just buy low sell high, they have to analyze your current assets, your goals, your risk threshold, different alternatives you have, including futures, forwards, options, their regulation, and legal issues that might come up.

On December 13 2010 11:49 sikyon wrote:
Are stocks really zero sum around average market growth? If you invest in a certain selection of stocks... can you not be investing with the expectation of directly increasing values of those stocks, which is tied directly to either dividends or future expectation of dividends? I thought that was the entire (theoretical) point of controlling stocks, but I'm no econ expert.

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.

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.

On December 13 2010 08:17 jstar wrote:
PLEASE find a broker.

On December 26 2010 07:20 gulati wrote:


Conclusion for you non-finance people: BUY GOLD. (Trust me).

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...

On December 26 2010 07:33 gulati wrote:


There is a difference between stating opinions and forcing you to buy something.

This isn't seekingalpha.com, bro. Just helping out my community members with knowledge.

P.S., don't ever buy an ETF without understanding the risks of them. They are a different animal than equities.

On December 26 2010 07:40 ChaseR wrote:
I wonder if one day fresh drinking water will be more valuable then oil once it runs out and pollution goes rampant in nature.

On December 14 2010 07:51 Glacierz wrote:


LOL this post is gold (no pun intended). Classic sign of bubble is when your average Joe neighbor starts telling you what stocks to invest in.

On December 26 2010 07:59 leecH wrote:
what are you guys talkin about gold being a bubble at some point. gold has an actual value because it is rare. you dont even undestand the most basic simple thing. even marx would not disagree with that.

On December 26 2010 08:43 Electric.Jesus wrote:


I, too, am rare. Even unique. Still, I am not very valuable monetarily.

On December 26 2010 07:43 gulati wrote:
Water costs more than Oil, actually. Calculate the price of Purified Drinking water (Poland Spring), versus a barrel of Crude Oil.

About ten years ago, investing into agricultural companies was a good idea, as the world population has went up one billion people over the last ten years. We are having a food and water crisis in this world. Energy and oil is important, but algorithms have already calculated and reached a finite conclusion that we will be running out of oil within another 30 or so years.

On December 26 2010 08:43 Electric.Jesus wrote:


I, too, am rare. Even unique. Still, I am not very valuable monetarily. Hence, rarity alone does not create value but in combination with demand it does.

If gold drops just 5-10%, everyone with gold is gonna panic and sell it, and it'll crash. That's how bubbles work. lol

On December 26 2010 07:59 leecH wrote:
what are you guys talkin about gold being a bubble at some point. gold has an actual value because it is rare. you dont even undestand the most basic simple thing. even marx would not disagree with that.

It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.

On December 26 2010 09:08 ShcShc wrote:


Just because its rare doesn't mean its valued at what it is priced at the moment.
The price of Gold today has nothing to do with "rareness".

1/3 of the price is based on its rareness.
2/3 of the price is based on a lot of debt worries especially the ones in Europe.

Of course that's a rough estimate, but the point being: a lot of the gold price is based on pure speculation.

On December 26 2010 07:43 gulati wrote:


Water costs more than Oil, actually. Calculate the price of Purified Drinking water (Poland Spring), versus a barrel of Crude Oil.

About ten years ago, investing into agricultural companies was a good idea, as the world population has went up one billion people over the last ten years. We are having a food and water crisis in this world. Energy and oil is important, but algorithms have already calculated and reached a finite conclusion that we will be running out of oil within another 30 or so years.

Long term it could be good if they don't find a way to create gold, which I suppose is a possibility?

Reputation isn't everything.

On December 12 2010 13:39 WAAA wrote:
I like how the graph doesnt deal in real dollars... my advice is if you have to ask a gaming forum do not invest in anything.

On December 26 2010 09:55 Gofarman wrote:


^This is propaganda garbage that has been fed to the green loving left wing for the last 10 years and has VERY little basis in what we call science.

Oil is finite, don't get me wrong. For the "algorithms" to correctly identify the amount of oil that is economically feasible to retrieve either we would have to understand the development of the Earth (for the last billion or 10k years whatever your slant is) which we have very little understanding of. I was thinking that the propaganda would be nullified a bit after the gulf oil spill (which they CLEARLY had NO IDEA how much oil was down there, and still don't) but people continue to believe what they are told by supposed experts on Ellen and Oprah. Don't forget about the huge Oil deposits that are being exposed courtesy of the receding ice caps Greenland ftw.

Anyways back on to the topic of the thread; I ended up putting all my savings into Gold back when it dropped back below 1k/ounce the second time, got most of it at about 720 which was good even though it continued to fall to around 650 at that point. I have almost made back my stock exchange losses and plan to get out of speculation all together when I break even and just invest in dividends. As for investing in Gold NOW I wouldn't recommend it honestly the price is likely to increase to around 1700 and then do a dive as people sell off for profit, IF I was in the market to buy I would buy at around 1100 and look to unload at around 2k, although if this is a retirement fund buy whenever, you will make at least 100% return in 25 years.

On December 26 2010 07:43 gulati wrote:


Water costs more than Oil, actually. Calculate the price of Purified Drinking water (Poland Spring), versus a barrel of Crude Oil.

On December 26 2010 11:13 gulati wrote:
Do not take that literally as the world will have "no more oil". That is impossible. Oil is carbon- we are carbon- there will always be oil, no matter what. It is just a matter of the speed and efficiency of drilling for oil- it will cost more to get the oil than we can sell it for, at a marketable price.

That, my friend, is fact.

On December 26 2010 11:13 gulati wrote:


Lol? So now oil consumption rates is political, and Oprah Winfrey is somehow tied into this?

You speak garbage. Read this textbook: Daly & Farley, Ecological Economics. You will realize what you are saying is... dumb.

There is a way to calculate oil consumption and depletion. The textbook definition, in laimens terms, states that the amount of energy required to withdraw one barrel of oil must cost less than the price from discovery, drilling, processing, shipping, and selling of that oil. We are reaching the equilibrium line in which the cost of that process is slowly going to exceed the cost of discovery, drilling, etc., meaning that we will "run out" of oil.

Do not take that literally as the world will have "no more oil". That is impossible. Oil is carbon- we are carbon- there will always be oil, no matter what. It is just a matter of the speed and efficiency of drilling for oil- it will cost more to get the oil than we can sell it for, at a marketable price.

That, my friend, is fact.

P.S. Sorry to digress from OP- I agree with TL moderators in saying that I am a no-namer and should not give financial advice- but if I had to deliver financial advice, it would say to buy gold. All I can say. If you want me to cite technical analysis and retracement levels to support my reasoning, I will be more than happy to. Just ask.

On December 12 2010 14:31 reg wrote:


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.

On December 27 2010 05:19 mads wrote:


If you recognize that you're not qualified...then what the heck?!

On December 27 2010 05:42 merach wrote:
Looking at the chart on page 1, gold spends a really long time hovering around $400, and so in my opinion, gold at today's rates would be a god awful investment. However, it seems that if you can hold onto the metal for 20-30 years, buying somewhere under $800 would probably yield really high returns. However, the prices today are definitely artificially inflated. In the real world, if an economy collapses, gold is worth nothing, much like it was during hurricane Katrina.

Looking back at the graph, gold has only really had a good return on investment over the last 7 or so years. Compare this to something else, like some growth stock mutual funds, gold barely beats inflation, while good mutual funds make 10%+ pretty consistently. It's pretty safe to say anyone that recommends buying gold near it's peak is a shill.

On December 27 2010 22:20 decaf wrote:
Do NOT invest in gold, the gold prices have fallen if you take inflation into consideration!

On January 02 2011 10:46 Zyban wrote:
in other words hatsu, the increase in the price of gold hasn't matched the increase in price of general goods. In theory toilet paper would have been a better investment if this is indeed correct (which to the best of my knowledge this is not the case).

On January 02 2011 10:30 Hatsu wrote:


Ahah what?

On January 02 2011 13:42 ItsFunToLose wrote:
As others have said,

Anyone who looks for investment advice on a niche gamer website is asking to lose money.

Once the forums start popping up where they don't belong, you know you have a bubble market

On January 03 2011 17:34 iPlaY.NettleS wrote:

You can't really have a bubble until it enters the publics mind to start buying.
Public is currently selling gold , as shown by the sheer number of stalls , internet websites and mail order co's encouraging the public to sell their gold.

On January 03 2011 18:17 Jago wrote:

Err, you have got that completely backwards. The public is currently buying gold.

On January 03 2011 18:25 iPlaY.NettleS wrote:

http://www.youtube.com/watch?v=WRVzF9dBl7c
Yeah thats why cash4gold did a superbowl ad?
It's the central banks , India , China , Russia that are buying the gold.
They know the USD ain't going to go up unless rates go up , and that doesn't look likely with helicopter Ben in charge.

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

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.

On January 03 2011 20:19 iPlaY.NettleS wrote:

Stocks didn't break even from the 1933 lows until around 1954.

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).

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 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...

On January 04 2011 01:26 Hawk wrote:
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.

On January 03 2011 17:27 Jago wrote:

Taking inflation into account, gold prices, over the long run, have barely kept up with inflation and in a lot of periods have even slightly lagged behind. Gold is a speculative asset. It pays no dividends and there is no real valid reason for NAV appreciation beyond the speculative part (unlike with stocks or with bonds in an enviroment of decreasing rates).

On January 04 2011 13:27 BrTarolg wrote:
I love all the bs going on in this thread

If you got a lot of dollars around, you should almost certainly invest in gold?
Why?

Because you are hedging yourself against the dollar that way. A STUPID thing to do would be to keep all of your "investments" in dollars.

Also in this particular case, i would much rather take my risk on gold than on dollars right now...

On January 05 2011 03:39 Blazinghand wrote:
Ok guys I'm just gonna say, since gold is at an all-time high, wouldn't now be the time to SELL gold? Especially since it's usually lower priced, one would expect the value to drop in the near future.

I think usually what happens is something rises in price and people are like "hey guys, this is rising in price, let's buy it!" and that raises the price even more.

On January 04 2011 05:29 dukethegold wrote:
You have to take inflation into account. It's not just gorgeous as the graph implicates.

On the other hand, cost efficient synthesis of gold, if possible, has major implication as all major banks around the world whores gold in order to back their nation's currency. I can not even grasp the implication that man made gold can have on the world economy.

On January 05 2011 04:06 Almin wrote:
That's ignorant, the dollar is the staple currency of the world, there's a lot more trust in the dollar than gold, look at the euro, it's tanking.

On January 04 2011 01:52 TanGeng wrote:




However, the Gold bubble if it is actually a bubble is not very dangerous. The bubble is not in the mania phase of a bubble. There are far too many naysayers for that to be the case. There are also far too many sellers of gold (like IMF) for mania to take over and for the price of gold to levitate far above its supported valued. In fact, the more people calling a huge gold bubble, the less likelihood there is one.

The moral of story applicable with all types of speculation is do your work early and hard. If you are lazy, stupid, or rash, don't even bother.