Comments on: Gold – Bad Investment: 3 Reasons why I don’t buy Bullion

By: Year in Review | Finance Blog

Year in Review | Finance Blog — Thu, 07 Jan 2010 06:27:17 +0000

[...] Investing and Money Rules of Thumb Compounding Interest: Best Investment Strategy -Invest Early Gold – Bad Investment: 3 Reasons why I don’t buy Bullion Discount Brokers: 5 Tips to Choose the Best Discount Broker Successful Investing: 10 Tips for [...]

By: Robert Timsah

Robert Timsah — Sat, 12 Dec 2009 08:59:38 +0000

Wow, I can’t believe some of these comments. The Value of gold, when priced in U.S. Dollars is going up because the DOLLAR is losing it’s value. That’s THE problem. Investing in gold simply protects you from inflation of a weaker dollar. Every investor should be invested in some gold, silver or other precious metals. Someone above said that gold has no intrinsic value? What the hell? Dollar bills have no intrinsic value, or else toilet paper does. Gold and silver will always intrinsically be worth something and has been a store of value for thousands of years. To suggest otherwise is seriously ignorant.

By: Peter DeGiglio

Peter DeGiglio — Mon, 23 Nov 2009 18:11:06 +0000

I cannot for the life of me figure out why anyone would ever consider gold as an investment. Not only for the excellent reasons pointed out above, but also for the fact that gold has absolutely no intrinsic value at all. Unlike just about every other commodity, you cant eat it, use it for fuel, use it for shelter, or use it for pretty much anything besides making trinkets to hang around you neck. It has such a limited commercial use other than for decorative purposes that its almost commercially worthless. Those who invest in it aren’t much different than cavemen who coveted and collected shiny rocks.

By: Investment Mistakes in a Bear Market | Frugal Dad

Investment Mistakes in a Bear Market | Frugal Dad — Fri, 30 Oct 2009 12:26:27 +0000

[...] to invest. Frugal Dad recently answered a readers question regarding gold, here are my reasons why gold is a bad investment. Although alternative investments have their place in a portfolio the excessive focus during bear [...]

By: MLR

MLR — Mon, 28 Sep 2009 16:12:03 +0000

The fact that people even value gold is kind of interesting. At one time it was tulips. Think about it… the only reason things are ever valued as they are is because of perception of worth.

That is how all currencies work.

By: Matt SF

Matt SF — Fri, 18 Sep 2009 03:24:56 +0000

@ t-luck,

Under those criteria, there would not have been an oil bubble. A bubble can form for any purchasable object as long as their is high demand and enough currency to sustain the rapid increase in price.

By: t-luck

t-luck — Fri, 18 Sep 2009 03:07:38 +0000

I personally don’t think that a gold bubble can be formed. Unlike the dot-com bubble, gold is limited/scarce and you can’t keep minting them forever. And users of gold or the need for gold only keep increasing, like for decorative items and in the electronics industry.

The demands keeps increasing, but the supply does not.

By: MoneyEnergy

MoneyEnergy — Thu, 17 Sep 2009 22:07:48 +0000

I’ve used GoldMoney for a few years – ask me about it if you like. Don’t currently own bullion. Have never heard the line about the expensive suit;) You bring up a good point about it being hard to value…. one counter position to that, though, is that there is a finite supply to it, so there’s a natural ceiling on the amount of gold in existence. So that at least puts some floor on it. (Sorry for the mixed metaphor!:)

By: Matthew

Matthew — Thu, 17 Sep 2009 20:27:34 +0000

Digital gold currency, or DGC, is an electronic form of money valued in terms of gold rather than a currency. It takes the form of a savings-like account through which you can buy, store, and sell your gold via the Internet in any quantity at anytime from anywhere. You make a deposit that is converted into gold and credited to your account. It’s convenient, and the buy/sell commissions and storage costs are low.

There are several players in this market, but the leader is GoldMoney.

By: Freed Income

Freed Income — Thu, 17 Sep 2009 20:20:37 +0000

ETFs for Gold contain many other “gold” type derivatives e.g. gold mining companies, processing companies, holding companies, options. They are not typically a true replacement for bullion. Don’t get me wrong I don’t want to house gold blocks in some storage facility in Australia or hide them around my house, but an investor should not conclude that the two are equivalent. Gold ETFs are good for riding a gold wave up and provide the liquidity that physical gold cannot, but you trade stability of physical assets for the safety of liquidity.