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...
The debt of the American government is approaching $17 trillion and there is a fight brewing to allow it to increase further.
Two excellent replies re the turmoil in gold.
We have this younger female relative, who is extremely smart, often cuts through the B$, and asks questions which might be obvious, but no one asks them.
Two summers ago, we visited her parents, and they informed me that she wanted to watch Fox Business with me. Which can be probably harder than oral PHD exams for Bus Adm.
I think I got a C with my answers in the first hour.
Then, there was a barrage of Gold Ads on tv including some former Watergate stars.
After these buy gold now because the $ will be worthless, came the best question of the day, month and since then.
Her question was simple but again to the core:
“If our dollars were so worthless and gold is so valuable now and in the future, why do the gold sellers want our $’s to buy their precious/valuable gold?”
I told her that I didn’t know and asked her why?
She said, “Something stinks and someone may be lying! If our $’s are so worthless now and later, why would a sane person sell their precious gold for worthless $’s!”