Gold down almost $14.00 today???????

me ^ | 12/14/05 | me

[tmp02]

Has anyone heard anything?

[simon says what]

Gold is a good bet if you can smell a recession coming or see inflation rising high, but for a long term retirement prospect, I'd shy away from it.

That is a long way from your original statement of "Gold as an investment stinks."

Obviously we're going to have to agree to disagree.

I agree.

As with any investment, it's best to diversify.

I agree again. ;-)

[ml/nj]

I don't believe that, but they don't believe half of their own conspiracy nonsense either. Are precious metals a good investment? Historically yes. But those pushing gold can't leave it at that. They have to denigrate every other form of investment and use fear mongering over "fiat currencies" to make their sales pitch.

Wow! I'm just going through old posts looking for something and I found this one. I wonder if you still believe this!

(I'm not a big fan of all the gold selling ads, but recently I heard one that started this way: "Hey you, you with the investment adviser. Did the guy ever once mention gold to you? It's been going up year after year, probably a lot more than the stuff your guy has been recommending. ..." I thought it was funny in a macabre sort of way.)

ML/NJ

[Anitius Severinus Boethius]

Yep, I still believe it.

If the yellow metal has so much value, and the green pieces of paper are worthless, then why in the world would you be so generous as to trade your valuable yellow metal for my worthless green paper?

[ml/nj]

If the yellow metal has so much value, and the green pieces of paper are worthless, then why in the world would you be so generous as to trade your valuable yellow metal for my worthless green paper?

I'm not. I won't be until I run out of those pieces of paper. But when I do I'll mostly be able make the trade at rates which have preserved my purchasing power until the time we trade. No one has said the green pieces of paper are worthless NOW, but certainly you must agree that they are headed in that direction. Pennies used to be exchagable for all sorts of things. Now few would bend down to pick one up off the ground.

ML/NJ

[Anitius Severinus Boethius]

You’re not, but so many gold sellers are. They are desperate to save people from their green paper. They talk down all other investments, because only their yellow metal will hold value.

Truly these are the Saints among us, for they are willing to part with that magic metal for the worthless paper. God bless them!

[ml/nj]

As I said before the guys you see on TV and hear on the radio are brokers. I would certainly admit that these guys are shameless hucksters. In fact, they've probably cost me money because I view them as negatively as you do. It's pretty obvious that gold can be overpriced in terms of dollars; and one never really knows what the government might do like forbid evil gold transactions or try to confiscate gold as it did 80 years ago. It's pretty clear that one isn't going to get much gold past the TSA either. So anyway I haven't bought any gold since the days of Jimmy ("I'll never lie to ya.") Carter.

The real sellers of gold are the miners. That's their business. The "value" of gold really depends on how many man hours and how much equipment cost there is to get it out of the ground, refine it, fashion it into ingots or coins with a reasonable profit to the owners of the mine. It's just like any other business. If it only cost $30 an ounce to bring gold to the market, gold would be valued at about the same price as silver. And if everyone thought it were as worthless as you seem to think it is, they couldn't sell it for anything.

The only thing the hucksters say that is mostly true is that gold has never been worthless. Paper eventually is.

ML/NJ

[Anitius Severinus Boethius]

And if everyone thought it were as worthless as you seem to think it is, they couldn't sell it for anything.

I've never said it was worthless. I've said that it was a good hedge investment against inflation (like it's proving right now), and it can be a very nice add on to an investment strategy.

But, as you have just stated, it doesn't have a magical intrinsic value. It is a commodity like other commodities and it's value is determined by the buyer and seller agreeing on a common price.

I just despise the panic mongers and grifters who lie to people about their magical yellow metal.

[GregoryFul]

You haven’t been paying much attention. Too bad for you!

[ml/nj]

But, as you have just stated, it doesn't have a magical intrinsic value.

I never said gold didn't have intrinsic value. I think you need to look up the meaning of intrinsic. Here, I'll help:

from http://www.merriam-webster.com/dictionary/intrinsic

Definition of INTRINSIC

1a : belonging to the essential nature or constitution of a thing [the intrinsic worth of a gem] [the intrinsic brightness of a star]

Here is a simple demonstration of gold's intrinsic value. If you let someone who has never held a Krugerrand hold one, that person will almost always smile.

ML/NJ