Is Gold Really a Good Investment?

[DrDeth]

“Buy low, sell high”. Right now Gold is at an all time high. Figure it out.

[pulykamell]

[QUOTE=Try2B Comprehensive;14045799
Anyway, I don’t hate gold or think people are stupid for buying it. I wish I’d bought some 5 years ago. I think it is in a bubble now though and has a long way to fall. That’s just me. Anyone who disagrees can buy some gold.[/QUOTE]

If you got some balls, you can make a pretty penny off a gold dip with gold short ETFs like GLL (which actually is an ultra short position, aiming to track gold at twice its inverse performance). I was tempted to buy some when gold was at 1200 or so. Good thing I didn’t.

[Try2B_Comprehensive]

@samclem

Can you give me some actual names of these billionaire hedg-fund investors and what funds they have their money in(as opposed to the physical possession route)?

I could, if you give me a couple of days. I read about this in a trade magazine highlighting some fresh, successful hedge-fund managers in a bathroom at a bank. I don’t remember the names or even the magazine!

Can you give me your source of information that members of Congress are legally engaged in insider trading. How can you legally do something that is illegal?

I want to say it was the Randi Roades radio show. I think I’ve seen it repeated here. The notion is that Congresspeople may buy and sell stocks as they wish, even when their positions give them particular insight into what is happening or is about to happen. To answer your question: it isn’t legal in the Congress case. I’m afraid I can’t be more specific about this source either, though in both cases I clearly remember getting the message from… somewhere.

[Try2B_Comprehensive]

@pulykamell

If you got some balls, you can make a pretty penny off a gold dip with gold short ETFs like GLL (which actually is an ultra short position, aiming to track gold at twice its inverse performance). I was tempted to buy some when gold was at 1200 or so. Good thing I didn’t.

So what you’re saying is yes, gold is a good investment?

Anyway I’d have to say I don’t have some balls for that. My investment strategy right now is ‘Mr Safety’. I’m more interested in not losing my money than growing it and planning on earning most of the money I’ll need instead of working out a high-risk 10,000% return scheme. And I try not to do anything when I’m not sure what I’m doing. Maybe in a few years, though by then it may be too late.

[gonzomax]

@DrDeth

“Buy low, sell high”. Right now Gold is at an all time high. Figure it out.

You figure it out. if the Repubs let us default, gold will skyrocket.

[DrDeth]

@Try2B_Comprehensive

So what you’re saying is yes, gold is a good investment?

Anyway I’d have to say I don’t have some balls for that. My investment strategy right now is ‘Mr Safety’. I’m more interested in not losing my money than growing it and planning on earning most of the money I’ll need instead of working out a high-risk 10,000% return scheme. And I try not to do anything when I’m not sure what I’m doing. Maybe in a few years, though by then it may be too late.

Then Cash is even safer. Or land.

Or if things get really bad- canned goods, guns and ammunition. Right now, gold is super risky.

[Try2B_Comprehensive]

@samclem

Can you give me some actual names of these billionaire hedg-fund investors and what funds they have their money in(as opposed to the physical possession route)?

You’re going to be on the edge of your seat at the sight of my advanced information gathering techniques, but I was downtown today, I re-visited that restroom, and behold, it was the May 2011 issue of On Wall Street magazine! From here:

Another energy advocate is David Nadel, co-portfolio manager of two of the top three funds in the international category — Royce European Smaller Companies and Royce Global Value. Each fund scored gains of just over 37% in the year to March 31. But unlike Iwanicki, he favors materials, with natural resources being one of the top sectors in both funds.

Nadel, who is director of international research at Royce Funds, favors the energy sector because of the overall global economic picture. He sees the developed world — the U.S., Europe and Japan — as having an artificially low interest rate environment, with an aggressive monetary policy. “In that environment, we’re attracted to the parts of the economy producing things in finite supply,” Nadel says. He and his colleagues like all natural resources, including oil or precious metals (they own mining companies for this exposure, not bullion). He adds that not only is supply finite, these commodities are getting harder to get out of the ground.

Bolding mine. The same approach shows up elsewhere in the article as well.

As yet I have no cite for the Congressional insider trading. Gimme another day.

[Furious_Marmot]

Susann-When the collapse of the US dollar occurs, how many dollars do you estimate it will it take to buy an ounce of gold? 5000, 10000, more? Just how bad do you expect it to get by, say, 2021?

[Damfino]

@Chronos

For what it’s worth, both my annual income and the US budget deficit are over a trillion dollars.

Problem solved.

[Icerigger]

I have one gold coin, a one oz. Canadian Maple Leaf, I purchases it when gold was $272 per oz. The best investment I ever made.

[JBDivmstr]

@Icerigger

I have one gold coin, a one oz. Canadian Maple Leaf, I purchases it when gold was $272 per oz. The best investment I ever made.

$272 per oz. ?!? Jeez, Louise! That would make you… HOW old? :eek:

Let’s see… <counting on fingers>

Damn! Hold on a minute! :smack:
(I gotta take off my shoes!)

[mac_bolan00]

you buy gold expecting the price to go even higher in the next 5 to 10 years. that means you don’t use more than 10% of your investible funds on gold.

[JBDivmstr]

@Furious_Marmot

Susann-Just how bad do you expect it to get by, say, 2021?

Won’t that pretty much be a “moot point” by, say… Oh… Dec. 2012? :rolleyes: <Runs away quickly, while ducking and dodging!>

Sorry, I just couldn’t resist!

[Icerigger]

@JBDivmstr

$272 per oz. ?!? Jeez, Louise! That would make you… HOW old? :eek:

Let’s see… <counting on fingers>

Damn! Hold on a minute! :smack:
(I gotta take off my shoes!)

That was I believe in 1998, not that long ago.

[JBDivmstr]

@Icerigger

That was I believe in 1998, not that long ago.

13 years? Well, I guess that’s not really all that, long ago. But in the world of precious metals commodities, I’m thinking that it is, a pretty long while.

(I could very well be wrong, though. I am most definitely, not a “commodities trader”, nor am I all that knowledgeable on the subject, to be perfectly honest.:()

Just sayin’…

[septimus]

@Try2B_Comprehensive

As yet I have no cite for the Congressional insider trading. Gimme another day.

I’m not sure mere legality necessarily makes investments by Congressmen moral. Eric Cantor is one of the Congressmen who is trying to force Treasury to default and will benefit financially if/when U.S. bonds are shunned by investors. His investment (“ProShares UltraShort Lehman 20+ Year Treasury”) is no multi-way hedge; it very specifically seeks the U.S. being forced to pay higher interest on its debt:

Investors who short-sell securities are essentially betting that their prices will fall. The leveraged ETFs that short Treasurys … [e.g.] The ProShares UltraShort Lehman 20+ Year Treasury

For the Congressman leading the charge against the U.S. Treasury to do such short-selling seems shameful beyond words, whether it is technically legal or not.

[Icerigger]

@JBDivmstr

13 years? Well, I guess that’s not really all that, long ago. But in the world of precious metals commodities, I’m thinking that it is, a pretty long while.

(I could very well be wrong, though. I am most definitely, not a “commodities trader”, nor am I all that knowledgeable on the subject, to be perfectly honest.:()

Just sayin’…

That equals about a 42% return for 13 years, that’s pretty good!

[Algorithm]

@septimus

I’m not sure mere legality necessarily makes investments by Congressmen moral. Eric Cantor is one of the Congressmen who is trying to force Treasury to default and will benefit financially if/when U.S. bonds are shunned by investors. His investment (“ProShares UltraShort Lehman 20+ Year Treasury”) is no multi-way hedge; it very specifically seeks the U.S. being forced to pay higher interest on its debt:

For the Congressman leading the charge against the U.S. Treasury to do such short-selling seems shameful beyond words, whether it is technically legal or not.

He has “up to $15,000” in the ultrashort treasury fund. He’s hardly bet the farm on it. It’s probably a very small portion of his undoubtedly very large portfolio.

[Chronos]

It still seems like a conflict of interest for a Congressman to have any investment in that sort of fund at all. It’d be like saying, “Oh, Pete Rose only put a small percentage of his paycheck into bets against his own team”.

[Algorithm]

@Chronos

It still seems like a conflict of interest for a Congressman to have any investment in that sort of fund at all. It’d be like saying, “Oh, Pete Rose only put a small percentage of his paycheck into bets against his own team”.

Absolutely, but people arguing that Cantor would work actively to force the country in to default simply to bolster a $15,000 investment are blind to reality. It’s quite likely the better financial scenario for him involves a strong economy and no default.