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To: blam

Something happen to gold prices Friday? I didn’t read anything...


12 posted on 05/19/2013 11:01:40 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: MeneMeneTekelUpharsin
Every time gold goes up, it's the best news ever. It's only natural.

Every time gold goes down, it is the result of a conspiracy I tell ya!

In the 80s when gold and silver went through the roof, we were told we'd never see the old lows again. Sure enough, those old lows came back around in short order, figuratively.

Now here we are again, and gold and silver have fallen considerably. The investment companies keep hawking the stuff. They're beating the "it's a great opportunity" drums again. They're as loud as they have ever been.

In the late 80s Silver approached $45.00 per ounce, probably exceeded it a bit. Then it fell to under $5.00 an ounce. And all the way down, commodity investment houses said, "It's a great time to buy."

Lots of people bought $14.00 silver thinking the bottom had to be near. It wasn't. It would take two decades before that position could be liquidated for profit. And then what? Even if you sold at the top, you would only have made 125% of your initial investment in that 20 years.

Now that sounds like a fairly good return, but that means your initial investment was held captive for two decades, while you had to do without the funds.

I remain unconvinced that precious metals investment is that great an idea. Even if you're extremely lucky, the returns aren't 1000%, or anything close to it.

If you're extremely lucky, you may make 100% return on your investment. If you're like the rest of us, your return will be 47% of what you initially invested.

Buyer beware...

28 posted on 05/19/2013 12:37:39 PM PDT by DoughtyOne (Before it's all over, Obama may demand extradition to Kenya, because he was born there...)
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