Posted on 12/14/2005 11:53:42 AM PST by tmp02
Has anyone heard anything?
I'm sorry, the arguments the goldphiles have are just ridiculous and they do use temporary market news in real estate, the stock markets, and the currency markets to sell their product.
So tell me, if gold is such a good investment, how is it that those most vocal on it's investment potential are those most eager to sell it?
Bwahahaha... that's the guy who was busted for huffing gold paint, right?
I'm pretty vocal about my belief precious metals (gold, silver, platinum) and precious metals mining companies will offer superior returns to most other investments the next decade or so. I have not sold any of these investments.
They do it for the same reasons other brokers do: to make money. They're either buying at a bid price and selling at an asked price or they are matching buyers and sellers and making a commission. If there's more interest in gold, then there will be more buy and selling so they seek to generate interest.
You seem to believe that these guys are selling their own gold.
ML/NJ
Yeah, but his larger problem is that he's a Golden State Warriors fan.
Yeah,
took their profits yesterday and bought Wendy's
Nicely done!
What exactly are those that are "most vocal to sell it", selling? Is it gold bullion? Or gold coins? I think it's the latter for the most part. Do they not make a commission, like a stock broker? So they sell their gold at a profit, allowing them to buy more gold to later sell at a profit again.
Same here. If anyone were to offer my current market price for my holdings, I'd say "thanks, but NO thanks". ;-)
Yeah, but it was at $500 in 1988. It was $620 in Jan 1980. There has been lots of inflation since then.
Confirms for me that Gold is still undervalued.
Just an FYI........Bill Murphy from GATA is on a web-radio show next Mon. (12/19). He'll be on the Nat'l Intel Report (M-F 4-6 PM CST) and it's at www.rbnlive.com then click "listen live" on the left side menu.......then choose which audio service you prefer. NIR is a good program that has covered the effects of depleted uranium on our soldiers, Bush's plan to give illegals Social Security, etc.
In Jan 1980, gold was at $620/oz.
In Jan 1990, gold was at $410/oz. Now it's about $505?
In Jan 1980, Exxon was about $55/share, it's now about $60/share but it's split 4 times since then...meaning you've quadrupled your money in 25 years with a safe stock.
In Jan 1990, Halliburton (the evil empire) was at about $33/share. Now it's $66 and it's split once, meaning again 4 times your money.
In Jan 1990, Walmart was $42/share (now $49) but also split 3 times.
In Jan 1990, Budweiser was at $38/share (now $43) but it's split twice since then.
In Jan 1990, the Dow average was at 2750, now about 10500.
In Jan 1980, the Dow was at 830.
In Jan 1990, the S&P 500 was about 355, now about 1275
In Jan 1980, the S&P 500 was about 108
....but go ahead, keep buying gold.
Any who invest in gold other than to take advantage of market flucuations are idiots. It can be profitable to speculate in just as other commodities like soy beans and corn are but those who invested in 1980 and held on lost their shirts just as any who believe the long term trend will be profitable to them to buy and hold will lose theirs.
Pretty shiney and useful for many things gold is a disaster as a monetary instrument, a guarantee of deflation and slowing economic growth.
Wow. Gee, that never occurred to me...you might be on to something!
....but go ahead, keep buying gold.
It is one of the favorite arguments of the anti-gold crowd to focus on 1980. There is no difference in someone choosing to invest in Gold in 1980 than there is someone choosing to invest in stocks in 2000.
Below are two charts comparing Gold and the S&P 500. The first chart covers 1971 to 1983. The second chart covers 1983 to 2005. In both charts Gold is the green line and the S&P 500 is the blue line.
Looking at the first chart it can be seen Gold outperformed the S&P 500 by nearly 2000% (20x) into the beginning of 1980. After 1980 Gold entered a bear market and as you can see in 1983 was experiencing a bear market bounce. Was it a mistake in 1983 to be arguing the S&P 500 had underperformed Gold by nearly 1100% and anyone investing in the S&P 500 stocks was an idiot ? Was it a mistake to point out that the price of the S&P 500 was still below the price it had been 18 years earlier in 1965 and to stay with Gold for superior returns?
Here we are 22 years after that 1983 comparison. Anyone arguing the S&P 500 was an inferior investment to Gold based on the previous chart in 1983 missed a 1000% (10x) runup into mid 2000 and here we are in the midst of a bear market bounce in the S&P 500. Sure, Gold has underperformed the S&P 500 by 760% the past 22 years and it is still below the peak price of 25 years ago. But the S&P 500 underperformed Gold by 1100% going into 1983 and the S&P 500 was stil below the peak price set 18 years earlier. Anyone buying at those S&P 500 prices in 1983 made a killing the next 18 years.
Buy low and Sell High.... that is the name of the game folks.
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