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Gold isn't an investment. It's a hedge. It's not a bad thing to have a small percentage of your money tied up in gold, but don't tie up too much of your portfolio in it, as it doesn't truly increase in value over the long term.
inflation averaged 3.50% , gold averaged 2.80% or a real return loss of almost 1% a year
intermediate term bonds returned 7.80% or a real return of 4.30%
stock markets climbed 12% or 8.50% real return.
of course the past may not reflect the future for lots of reasons but you had so many gold bug newsletters back then predicting how well gold had to do and they are gone and gold failed miserably as a place to keep money .
it would have been very costly insurance for decades.
however as I said before , if you had a strategy for utilizing that gold in something like the permanent portfolio concept then the rebalancing of gold all those years actually made it a winner.
so just buying gold as insurance may cost you dearly in anything but a complete break down of currencies , but as part of a strategy you can do ok.
Last edited by mathjak107; 02-04-2015 at 02:34 AM..
Is investing in gold a good idea for long term investing? Has anyone on here ever invested in gold?
No. Have you been hearing gold commercials? It's a hedge against bad things happening.
If you choose to own some then don't hold more than 5 - 10%. That's about the consensus among people like Cramer, Clark Howard, etc.
I see gold is a hedging mechanism against falling dollar or real-estate.
For some reason I think that petroleum is the gold of modern day. I also have this crazy notion that petroleum prices are still quoted in USD globally.
gold is still used as a currency standard by some countries.
Today, for my money commodity trading with gold maybe if I am bored enough, but investment is in petroleum.
If I was interested in making money on gold price fluctuation, I would look at how global events and news affect gold prices.
In short, Investment in gold is a no, trading gold or hedging gold, maybe.
My husband was a sucker in 2007-8ish... he was listening to the "buy gold now! everything else is going to hell" infomercial on the radio and bought some.
The U.S. Treasury debt passed the point of no return long ago. Our bought and paid for politicians will continue to spend like drunken sailors and borrow and print in increasing amounts to pay for it. The collapse of the US dollar is inevitable, the only question is when. The collapse of the Russian ruble in so short a time should be taken as a harbinger of what will happen to the US dollar.
Gold coins or bullion will protect at least a part of your financial assets from the spectacular dollar meltdown to come.
Is investing in gold a good idea for long term investing?
Has anyone on here ever invested in gold?
Searching a topic is a great idea for long term investing.
Almost everyone on here has opined on gold in one thread or another.
Oh well, what's this? ... Maybe it's the 15th new thread on gold in the past 12 months. I like talking about gold.
Quote:
Originally Posted by flyingsaucermom
My husband was a sucker in 2007-8ish... he was listening to the "buy gold now! everything else is going to hell" infomercial on the radio and bought some.
serious mistake!
Buying gold in 2007 was a great time to buy. The price of gold barely hit $1,000 that year. It's still over $1,200.
If your husband bought in 2007 and put all his money in at that one time, the problem wasn't the investment, but the technique. He would have had nearly a double by 2011 and he didn't sell some? Again, greed is a bad technique.
Here's a good rule for investing: Bet not thy whole wad. ( I actually like to use the word "shoot," but then I'm a perv.
Finally, investing in something because you heard an infomercial? That's priceless.
Quote:
Originally Posted by Wells5
The U.S. Treasury debt passed the point of no return long ago. .... < gloom > ...
The collapse of the US dollar is inevitable, ... < doom > ...
Gold coins or bullion will protect at least a part of your financial assets from the spectacular dollar meltdown to come.
If the dollar lost 85% of its value would that be a meltdown? The dollar would be worth about 1 Renmimbi.
If the dollar lost 99% of its value would that be a meltdown? The dollar would be worth about 1 Yen.
The dollar has lost well over 90% of its value in the last 100 years. Yup, gold has retained its value.
The thing is; a "meltdown" describes a financial calamity or value collapse. I wouldn't bet on that.
I bought silver in high school and I'm a sucker because of it. I lost half my money. If the dollar melts down, so will gold. A house will be there if the currency turns to crap, but gold will not feed or house you.
I'd buy bitcoin before I would buy gold.
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