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And where have you found to put the 30-40% that you feel is less risky? Not in bonds, I hope. If so, you could find the bond market tanking due to increases in interest rates at the same time the stock market takes a slide.
Actually maybe I do feel like gambling. Gold dropped from over $1750 last Fall to about $1400 now. I would bet the price will be under $1200 by the end of this year. Good luck with your "investment".
gold is real money, everything else fluctuates against it, including the dollar.
Gold is a commodity, like many other commodities, and fluctuates against other measures of value, such as the dollar.
The dollar doesn't fluctuate against gold any more. It hasn't since 1976.
Quote:
Originally Posted by icicles
Gold is taking money off the table so you aren't speculating.
Investing in gold is investing in a commodity, speculating that that commodity will retain or increase in value better than other types of investments.
Quote:
Originally Posted by icicles
The dollar has lost over 96% of its value since its 1913 federal reserve installation.
Who said to invest in the dollar?
Quote:
Originally Posted by icicles
short term it is pulling back, long term it will appreciate against the dow and usd currency.
Gold may be a commodity but it is an unusual commodity in that the price is based almost entirely upon speculation. The vast majority of the gold supply is horded. There is almost no "real" value for gold. The gold supply is based on reclaiming previously used gold and by mining production. This annual supply is very low compared with the total stocks. The industrial use is low even when compared with the annual supply and is about 10% of that amount. Sorry but the value of gold is almost entirely speculative.
Gold is a commodity, like many other commodities, and fluctuates against other measures of value, such as the dollar.
The dollar doesn't fluctuate against gold any more. It hasn't since 1976.
Investing in gold is investing in a commodity, speculating that that commodity will retain or increase in value better than other types of investments.
Who said to invest in the dollar?
Proof?
Gold is real money. That is why central banks purchase it and hold it as reserves. The value is the gold and to be a reserve currency you need something of value to back your worthless fiat currency. That is why the "wealthiest" nations in the world all have the largest holdings of gold.
The dollar is not a good store of value, that is why I made my comment about its 96% devaluation.
Since it is not a good store of value, and the country prints whatever it wants, pricing commodities or other "things" in dollar terms makes things confusing. You need to price things against other things to get a valuation.
went off the gold standard in 1971, not 76.
When you price things against things (gold to oil, dow to gold, and other ratios) you will see that all things produced from the earth are in a sideways channel against each other moving up and down but not UP. The upwards movement you do see is only inflation. the ratio goes up and down against each other because of supply and demand forces.
Hence, gold does not lose value on average against other commodities over the long term. The ratio's are range bound. Short term price fluctations against each other is short term and supply/demand causing this which goes from year to 5 years in length. That is the only time gold fluctuates.
Gold accounts for the money supply as well, and its WAY WAY underpriced compared to the M0/1/2/3 money supply and also to the DOW.
The big move is gold up, dow down. The government is propping up the stock and bond market and this cannot go on forever. I am positioning myself to reap the rewards of the ratio narrowing between the dow and gold.
Here is a chart to show our current state. I am guessing at some point in time in the future that the gold price could go higher than the dow price.
Anyone who bets the ranch on one particular outcome is speculating not investing .
Usually they get burned eventually when conditions change before they react.
Things not even on the radar will usually destroy all the reasoning in the world as to why something should act in a predictable way.
I still can not believe"
that old 5-1/4% savings account which we all laughed at when money market rates were 70% higher would be hitting the mother load 40 years later if you could get it today.
the thought that 30 years after inflation was raging, bonds the red headed step child was a fabulous investment that surpassed equities over almost every time frame the last 30 years.
speculating is only good until its not ,then you find out it doesn't matter what you think is the logical play out of things..
Gold may be a commodity but it is an unusual commodity in that the price is based almost entirely upon speculation. The vast majority of the gold supply is horded. There is almost no "real" value for gold. The gold supply is based on reclaiming previously used gold and by mining production. This annual supply is very low compared with the total stocks. The industrial use is low even when compared with the annual supply and is about 10% of that amount. Sorry but the value of gold is almost entirely speculative.
very true from a philisophical stand point. Gold has been used as a measure of wealth and money for over 6,000 years. Minted into coins for around 2,500 years or so.
Not a single currency has lasted even 50 yrs in one state. Ours is at like 40 yrs? where we went off the gold standard in 1971.
I will post some quotes about gold below.
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. Alan Greenspan
[SIZE=3]"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." -Woodrow Wilson, after signing the Federal Reserve into existence[/SIZE]
[SIZE=3][/SIZE]
[SIZE=3][/SIZE][SIZE=3]"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." --Henry Ford [/SIZE]
[SIZE=3][/SIZE]
[SIZE=3]"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."
Thomas jefferson
"Banking was conceived in iniquity and was born in sin.
The Bankers own the earth. Take it away from them,
but leave them the power to create deposits,
and with the flick of the pen they will
create enough deposits to buy it back again.
However, take it away from them, and
all the great fortunes like mine
will disappear and they ought to disappear, for
this would be a happier and better world to live in.
But, if you wish to remain the slaves of Bankers
and pay the cost of your own slavery,
let them continue to create deposits."
[RIGHT][RIGHT]Quote by:[/RIGHT][/RIGHT] Sir Josiah Stamp
(1880-1941) President of the Bank of England in the 1920's, the second richest man in Britain
"To cause high prices, all the Federal Reserve Board will do will be to lower the rediscount rate..., producing an expansion of credit and a rising stock market; then when ... business men are adjusted to these conditions, it can check ... prosperity in mid career by arbitrarily raising the rate of interest. It can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the discount rate, or cause violent fluctuations by a greater rate variation and in either case it will possess inside information as to financial conditions and advance knowledge of the coming change, either up or down. This is the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money. They know in advance when to create panics to their advantage, They also know when to stop panic. Inflation and deflation work equally well for them when they control finance."
Charles august Lindbergh
Gold was the protector of freedom and the anchor for savings and investment. Banks hated paying real interest, so they install fiat currency which transfers wealth from the working class to the banking sector and government.
Gold is money, nothing else has been able to be a substitute. And this is by definition of money, because it is a store of value, the dollar is not.[/SIZE]
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