Comments on: Should You Invest In Gold?

By: Best ETF Gold Fund – GLD (If You Must) - Amateur Asset Allocator

Best ETF Gold Fund – GLD (If You Must) - Amateur Asset Allocator — Tue, 02 Mar 2010 23:03:14 +0000

[...] quick note: I do not necessarily advocate investing in gold. That said, some prominent investors believe investing in gold is a good hedge against [...]

By: 401k Advice You Should Ignore - Amateur Asset Allocator

401k Advice You Should Ignore - Amateur Asset Allocator — Mon, 14 Sep 2009 13:20:20 +0000

[...] I don’t deny that commodity funds probably have a place in most long-term portfolios (and buying gold can be a part of that), you certainly shouldn’t put all or even most of your 401k [...]

By: The Week’s Best at VIN Value Plays

The Week’s Best at VIN Value Plays — Tue, 08 Sep 2009 05:13:06 +0000

[...] 12. Should You Invest In Gold? [...]

By: Hot Commodities Review By Jim Rogers - Amateur Asset Allocator

Hot Commodities Review By Jim Rogers - Amateur Asset Allocator — Tue, 25 Aug 2009 11:01:39 +0000

[...] think it will be one of the big movers and doesn’t advise investing in it (I too discourage investing in gold). In fact, he devotes an entire chapter to dispelling the mythology of that little yellow [...]

By: Successful Investing Tips and Techniques — P2P No Bank

Successful Investing Tips and Techniques — P2P No Bank — Sun, 12 Jul 2009 20:51:33 +0000

[...] Should You Invest In Gold? For centuries, mankind has been obsessed with shiny pieces of metal known as gold. Even today, investors the globe over often flee to gold in times of economic instability because it has often functioned well as a hedge against inflation and a falling currency. True to form, gold has been…… [...]

By: Test Your Gold IQ | Amateur Asset Allocator

Test Your Gold IQ | Amateur Asset Allocator — Tue, 28 Oct 2008 13:04:47 +0000

[...] a turbulent economy, it’s not uncommon to be told to buy gold, but how much do you really know about that shiny yellow metal everybody goes crazy over? Well, [...]

By: What To Do When The Dow Falls 400 Points | Amateur Asset Allocator

What To Do When The Dow Falls 400 Points | Amateur Asset Allocator — Tue, 10 Jun 2008 11:02:27 +0000

[...] frenzy. By the time their blood pressure doubles, they’ve already sold all their stocks and bought gold or bottled water and ammo for when the bombs start falling and the radioactive zombies come out of [...]

By: Kyle

Kyle — Wed, 04 Jun 2008 19:14:01 +0000

The price of gold and the value of the dollar are not intimately linked. If you compare a chart of the two, they do not move in lock-step. Gold also does not track inflation over short periods of time. It has its own supply and demand characteristics. I think the notion that gold always maintains the same value while currency fluctuates around it is patently false. The true economic value of gold fluctuates just like everything else and isn’t tied to either the value of any currency or inflation. Thus, I see nothing inconsistent in the position that gold can rise while inflation remains low. I don’t recall ever making the claim that the value of the dollar will rise. However, it is perfectly possible for both the dollar and gold to appreciate at the same time. It has happened many times before. Furthermore, it is also possible for the dollar to fall while inflation decreases, which has also happened many times before. While these phenomena certainly influence each other, they are not pre-destined to always have this behaviour. When you say the dollar can’t possibly increase, what exactly do you mean? Against the Euro? Gold? Wheat? Of course it can increase at any time against any of these things. Gold, wheat, and the euro do not have intrinsic economic values that never fluctuate. While commodities DO have an intrinsic economic value, the actual price of these materials fluctuate around these values due to supply and demand dynamics in the same way the price of a stock or bond fluctuates around their intrinsic economic value. Furthermore, the actual intrinsic value fluctuates as well. That gold usually tracks inflation fairly well over the long term says nothing about what it does in the short term.

If these things were really so predictable, there would be a lot more billionaires in the world.

By: Curt

Curt — Wed, 04 Jun 2008 19:02:06 +0000

Now you’re starting to talk my language. Gold is just getting started, the dollar is sinking and inflation is on a tear. And the reason is …. because of the Fed reserve monetary policy, which has now pushed interest rates (2%) below inflation (4%) – making money out of nothing to inflate the money supply. There are so many problems in the US market that there is no possible way that the dollar can increase. In fact, the dollar is likely to decrease by 40-50% in the next few years.

Now, I know you don’t believe all of this, but how can you recommend Gold and believe that the dollar will strengthen and inflation will subdue (as you wrote in previous articles)?

Taking a consistent position is one of the advantages of a personal blog, because it allows you to build a readership that follows your thinking. Financial Media is where you find many difference positions because they are afraid to alienate anyone. If you don’t take a consistent position, then you lose credibility and it looks like you are just saying what you read somewhere.

By: edzillion

edzillion — Wed, 04 Jun 2008 18:54:40 +0000

"..gold has storage costs, so not only does it not produce any income, but it requires you to regularly put up more cash to care for your investment." Au contraire, mon ami. The Perth Mint Certificate Programme has no storage costs if you go for unallocated storage (basically in a big shared pile). There are some risks, both legal and otherwise with this arrangement; but you can at any time convert it into bars and have it delivered, so that you can bury it in your back garden, or whatever the apocalyptists reccomend.