“Do not invest more than 2-3% of your financial net worth in any one security, or more than 20% in any one sector.”
The goldbuggers need to learn that. They go crazy if you so much as suggest the metal isn’t worth $100k an ounce.
I’ve doubled my worth in 3 years. how are you doing ? /goldbugger (well, silver really)
People like that believe they know what is going to happen in the future. Everyone has an opinion about what will happen in the future. However, everyone knows that in the past some of these opinions have turned out to be wrong. I could mention the dto-com boom and the housing boom.
The idea of investing is that you are going to have money no matter what happens. You won’t be as rich as you would be if you did know what was going to happen in the future, but you won’t go broke either.
I won’t say I have never been down in any year, but I have had consistent returns over the years. Maybe not as much as a more aggressive investor, but I am in control and comfortable with the level of risk.
“The goldbuggers need to learn that.”
Gold isn’t an investment in the ordinary sense. It certainly is not a security. It’s money; it’s a monetary asset that denominated in troy ounces rather than dollars, euros, yen, or riyals.
As a monetary asset, the US dollar has been a lousy type of money for about five decades regardless of whether it is compared with gold or silver, or with Swiss francs or yen. In 1971, a dollar got you four Swiss francs. The same Swiss franc today will cost you $1.13. The future for the US dollar is none-too-bright either. The only time to go long the dollar is when interest rates are already high, and posed to go higher. That’s almost impossible to predict, and it makes a bullish position on the US$ very risky. I’ve swing-traded against the dollar for thirty years, and have never lost money betting against it. But that’s not saying much about my trading acumen, because the dollar has been in a fifty-year decline.
If one doesn’t have 10% of assets in precious metals or related investments (miners, ETFs, etc.), it’s time to start dollar-cost averaging in.