Comments on: Gold Investment

By: Festival of Frugality #201 – Life Stages & Home Ownership Lesson Edition

Tue, 27 Oct 2009 09:02:25 +0000

[...] @ Financial Highway presents Gold Investment posted at Financial [...]

By: Investment Mistakes in a Bear Market | Frugal Dad

Investment Mistakes in a Bear Market | Frugal Dad — Tue, 20 Oct 2009 10:01:59 +0000

[...] somehow these will perform better than the equity markets. In this recession the focus has been gold investment, gold is reaching all time highs and investors believe gold is a great place to invest. Frugal Dad [...]

By: Festival of Stocks #163 | Value Investing Pro

Festival of Stocks #163 | Value Investing Pro — Mon, 19 Oct 2009 14:23:01 +0000

[...] @ Financial Highway presents Gold Investment posted at Financial Highway, saying, “With increasing Gold Prices, investing in gold has [...]

By: Intelligent Speculator | Financial Ramblings - Dow at 10,000

Intelligent Speculator | Financial Ramblings - Dow at 10,000 — Sat, 17 Oct 2009 11:45:26 +0000

[...] you will need, preparing for an emergency -Is gold still a good investment, read a few arguments here If you liked this article, you might want to sign up for my FULL RSS FEEDS. Then, you will [...]

By: Doug Digger Eberhardt

Doug Digger Eberhardt — Wed, 14 Oct 2009 00:13:38 +0000

Ray, some good advice….brokers typically don’t offer bullion to their clients because they can’t make much from selling it. They may try and put you in an ETF like GLD instead.

Retirement Savior,

If gold has a long term “0 real return,” what does the U.S. dollar have as a real return since 1971 when Nixon took us off the gold standard in terms of purchasing power?

Are you suggesting TIPS as the “better place” to get inflation return?

Do you believe that gold is a leading indicator of inflation?

Minority Fortune,

If gold’s ship has sailed, are you suggesting that people don’t diversify some into gold as a hedge against any further dollar decline from a long term perspective, or just talking short term?

By: Minority Fortune

Minority Fortune — Tue, 13 Oct 2009 17:13:20 +0000

We have to say that the ship to get gains from gold stock has indeed set sail. It does make for a nice diversified portfolio, but one should never buy it up in hopes of big gains. But that’s the market for you: hype, hype, and more hype!

By: Retirement Savior

Retirement Savior — Tue, 13 Oct 2009 15:12:31 +0000

In the long run, gold has a 0 real return. And it has negative cost of carry to store it.

While it works as a diversifier, there are better places to get inflation protection.

Right now it is big as an investment because it is moving higher, and CNBC and the investing public are attracted to volatility in any form.

By: Monevator

Monevator — Tue, 13 Oct 2009 14:51:37 +0000

Nice article Ray, but I’d add ‘Greater Fool Theory’ to the list. (Do a quick Google if not familiar with the term ).

By: Ray

Ray — Tue, 13 Oct 2009 12:07:06 +0000

@EW true emotions are always a big reason for investing, with all the hype investors may just feel that they have to get into gold since everyone is talking about it.

By: Evolution Of Wealth

Evolution Of Wealth — Tue, 13 Oct 2009 11:55:22 +0000

What about the emotional aspect? Won’t people invest in it just because it is at new highs? People feel as though they are missing out on all the great returns that gold has given so they want a piece of that. They don’t care about rule #1, buy low, sell high. They want their piece of the action. They want a piece of the return.