Gold surges to new high above $1,200

[LegendKiller]

People knew housing was a shit investment in 2004/5, it just took 2 years to catch up. Maybe it'll take 5 years for gold to catch up but it eventually will.

This is just another bubble perpetuated by the hedge funds and banks. Once the music stops it'll be the common person holding the bag and bitching that the "evil banks" manipulated shit. Sorry, son, you bought into it, you held it, and you own your own mistake.

The correlation between gold and inflation is poor. The correlation between gold and risk is far better. The correlation between stocks and inflation is far better than the one between gold and inflation.

Why?

Because if you're P&G and you sell goods that are essential your price elasticity is good, thus, you can pass on the cost of inflation perfectly to purchasers of your good, especially since long-term wages HAVE kept up with long-term inflation.

Gotta love rationality in investing.

 

[totalnoob]

I recall you bashing gold back around $800 Legend. How's your 1% money market doing?

 

[highland145]

I recall you bashing gold back around $800 Legend. How's your 1% money market doing?

ouch.

 

[LegendKiller]

I recall you bashing gold back around $800 Legend. How's your 1% money market doing?

So what?

I'm not invested in MM (except for my extreme liquidity fund which is less than 2% of my portfolio). As far as my investment choices, I'm up 400% over the last 15 months, 60% since the beginning of the year. If you want proof you can look at my marketocracy account, which is public, which mirrors my own portfolio.

You may think gold is a great investment, but it isn't. Betting on the failure of society is stupid and assumes a static mindset with only one scenario. That alone is ridiculous and limiting but is unsurprising coming from somebody so ridiculously tunnel visioned and intellectually limited, like most ron paul bots and doomsdayers.

You know, Warren Buffet's father was the same way. Thought the democrats were going to destroy the country and the dollar. He bought gold, put flour in the attic, and helped his brother (buffet's uncle) buy a rural farm for the eventual collapse.

His father did pretty well in life but wasn't the world's richest man. Perhaps you should learn something.

 

[totalnoob]

I started buying gold n silver in the mid-late 90's. Total time spent researching stocks and worrying about returns over the past 15 years = 1-2 hours total. I bet my actual return is similar to yours, but I've had countless hours of leisure rather than stress and micromanagement. I'd consider that a priceless return.

 

[ericlp]

hahaha Actually it's hard to predict. Maybe one should be looking at "OTHER" precious metals like Silver? Like gold it's been holding it's own.

http://en.wikipedia.org/wiki/Silver_as_an_investment

I think Silver will be the new investment metal to hold onto for people to hoard and at 20 bucks an ounce it has a lot of room to grow. Still even tho it was 4 bucks an ounce a few years ago, it's still a decent buy at 20 now. I don't see a problem in investing 5K or 16 lbs of silver. If it follows the charts it should double with in a year or so if gold continues to hold 1200 or go up even higher.

 

[LegendKiller]

I started buying gold n silver in the mid-late 90's. Total time spent researching stocks and worrying about returns over the past 15 years = 1-2 hours total. I bet my actual return is similar to yours, but I've had countless hours of leisure rather than stress and micromanagement. I'd consider that a priceless return.

Great for you. I highly doubt your return is anywhere near mine.

Why don't we do something a bit more reflective of reality (although twisting in a different light). Let's use gold returns for the last 28 years vs S&P500.

Different, eh?

How about we take gold for the last 50 years vs stocks.

Far different.

Gold is a miserable "investment". Might as well buy a pet rock.

 

[JS80]

I started buying gold n silver in the mid-late 90's. Total time spent researching stocks and worrying about returns over the past 15 years = 1-2 hours total. I bet my actual return is similar to yours, but I've had countless hours of leisure rather than stress and micromanagement. I'd consider that a priceless return.

Curious, you have a badass safe at home? Or do you keep it at your bank safe deposit?

 

[totalnoob]

Curious, you have a badass safe at home? Or do you keep it at your bank safe deposit?

I sold almost everything and converted to the SLV ETF last year....much more convenient, and I don't need to worry about being robbed.

For keeping it in your house, safe + home alarm system = win

 

[JS80]

I sold almost everything and converted to the SLV ETF last year....much more convenient, and I don't need to worry about being robbed.

For keeping it in your house, safe + home alarm system = win

Sold for tax free gains? haha

 

[LegendKiller]

Sold for tax free gains? haha

Hey, but he had a gun, and a home alarm, protecting his vast Midasesque fortune.

What a fucking loon. Does he really think he's believable with this shit? Home alarms can be circumvented, you aren't always around, and home safes can be cracked or removed.

What a joke.

 

[totalnoob]

Sold for tax free gains? haha

I paid all my taxes.

and lol @ legend...You're such an whore for the fiat establishment.. You'll probably end up taking a nosedive from a skyscraper in a few years when your paper fortune goes poof.

 

[yllus]

I know even less about where the price of gold is going than I do about the market (via an index). And gold doesn't pay dividends. But it seems to be a good long-term bet (but then again, so is the market).

 

[LegendKiller]

I paid all my taxes.

and lol @ legend...You're such an whore for the fiat establishment.. You'll probably end up taking a nosedive from a skyscraper in a few years when your paper fortune goes poof.

Sure, we believe the whole story, including the taxes.

No, I am a whore for intelligent investing, not pet rock bullshit.

Yeah, believe I'll kill myself, I'm sure that'd please people like you.

 

[JSt0rm]

does anyone have the nutritional information of gold?

 

[highland145]

does anyone have the nutritional information of gold?

The schlager will make you sick.

 

[NoStateofMind]

does anyone have the nutritional information of gold?

0 Carbs
0 Fat
0 Calories

The perfect food!

 

[BigDH01]

I sold almost everything and converted to the SLV ETF last year....much more convenient, and I don't need to worry about being robbed.

For keeping it in your house, safe + home alarm system = win

I think you should be more concerned about it being robbed.... unless you think it's going to be easy to trade your account statement for silver bullion after your predictions become true and the dollar is essentially worthless and chaos has ensued. I'm sure after an unprecedented currency devaluation and subsequent global economic collapse, people will accept your claim of safe, stored, and possessed silver at face value.

Also, SLV is not that hot. I know because I purchased it several years ago around 12 (although it was really 120 at the time as it was indexed to 10 ounces) and watched it go above 20. I sold at a little over 19. Where it is at now is not that unusual.

 

[Thump553]

I have to admit I'm surprised at how far the gold bubble has stretched to date. Investing in gold at this point, I'd rely on the advice of Dirty Harry "Do you feel lucky, punk?"

 

[Modelworks]

My grandfather grew up in the great depression and was also one of those people called crazy for keeping his money in jars or buried in the yard. He never went without money though and always told me to keep a little silver and gold around for hard times. I listened to him and bought when it was below the $500 range years ago, just buying some to keep at home, not using the investment companies. It isn't something I recommend people do for financial planning, but I have to admit there is something nice about being able to hold it in your hand and know it will always have value.

 

[Modelworks]

I started buying gold n silver in the mid-late 90's. Total time spent researching stocks and worrying about returns over the past 15 years = 1-2 hours total. I bet my actual return is similar to yours, but I've had countless hours of leisure rather than stress and micromanagement. I'd consider that a priceless return.

This is the best thing about it I think. It is something you can buy, put away somewhere and never have to worry that it will lose its value. I know people worry about someone stealing it but smart people don't go around saying, "hey look what I got, gold in 20oz block". a safe hidden away and bolted to the home and I don't worry a bit.

 

[StageLeft]

This is the best thing about it I think. It is something you can buy, put away somewhere and never have to worry that it will lose its value. I know people worry about someone stealing it but smart people don't go around saying, "hey look what I got, gold in 20oz block". a safe hidden away and bolted to the home and I don't worry a bit.

But it CAN lose its value. I could buy a buffalo gold coin now for $1300 and next year it may be worth $750. That is definitely a loss of value.

 

[Modelworks]

But it CAN lose its value. I could buy a buffalo gold coin now for $1300 and next year it may be worth $750. That is definitely a loss of value.

It can lose some of its value but it will always have value

 

[BigDH01]

It can lose some of its value but it will always have value

What would make you think that's true?

It's seems to be a function of belief and marketing than any universal truth. Just as people put complete faith in the dollar's value hoping that its supply will be managed intelligently, people who put their faith in gold better believe that science doesn't find a way to manufacture it using common supplies or that people don't suddenly find silver, copper, neodymium, promethium, or giant stone wheels more desireable. In other words, gold only has value because of peoples' perceptions of it. People are fickle.

 

[Modelworks]

What would make you think that's true?

It's seems to be a function of belief and marketing than any universal truth. Just as people put complete faith in the dollar's value hoping that its supply will be managed intelligently, people who put their faith in gold better believe that science doesn't find a way to manufacture it using common supplies or that people don't suddenly find silver, copper, neodymium, promethium, or giant stone wheels more desireable. In other words, gold only has value because of peoples' perceptions of it. People are fickle.

Thousands of years of history of gold being used as currency compared to stone wheels ? Be serious. You seriously think that gold will lose all its value ? Making gold is about as likely as someone finding the philosophers stone .

People may be fickle, but in over two thousand years I never heard of any report of someone turning down gold.
Gold has properties that other metals do not and is used for many things besides jewelry.