Gold ready to crash?

Market Watch.com ^ | Jun 1, 2006 | Jesse Czelusta

[stephenjohnbanker]

: )

[Protagoras]

It can be a useful asset if governments inflate the fiat currency. Merely a tool, like many others.

[BeHoldAPaleHorse]

No, sarcasm. ~()):~)>

[Grampa Dave]

Depends on who makes the suit.:)

[Proud_USA_Republican]

I'll wait for it to crash and then show signs of life. Don't like to catch a falling knife.

[Anitius Severinus Boethius]

gold will still have value

Only because we give it value. It is fiat yellow metal!

[paulcissa]

"If the monetary system ever collapses, which is pretty extreme, I'd be worried about a lot more things thing than just the gold in my portfolio."

Well said.

You know.....you can never have too many bullets.

[RightWhale]

Even if our monetary system collapsed gold will still have value.

If the money system collpses we will be having worse problems. Anybody with gold will have a target painted on his forehead as far as the class of beggars, thieves, and tramps are concerned.

[Grampa Dave]

"It can't be about to crash. I hear all those commercials Michael Savage does for Swiss America Trading!"

Silly Savage or is it Michael Weiner, as Mark Levine reminds us with his commercials about Weiner.

[Eastbound]

"Not as much value as guns and gasoline."

And if civilization collapses, peppercorn. ("Tsunami")

(Hides the flavor of rotten meat.)

[Atlas Sneezed]

Imagine that in the year 1900 your great-great grandfather had listened to the advice of someone touting precious metals. How would his investment have looked one hundred years later?

---

WRONG!

The proper analysis is not to pick a date in hindsight and assume one lump purchase that cashes out today. Normal people don't invest like that to preserve their wealth. The proper analysis is to assume "averaging in," by a monthly or annual investment.

I haven't run the 1900 numbers, but even if you assume the worst, ansd someone started investing at the peak a few decades back, gold would have provided the equivalent of a 5% annual rate of return (ignoring taxes). Any other time of starting the investing (earlier or later) would yield much better.

Sure, Microsoft would have done much better, but a 5% rate of return on something that is a guaranteed store of wealth over the long term ain't

Not to be defensive, but for every moron who picks one investment date to make something look bad (or good) I can pick another to show just the opposite.

[Smokin' Joe]

If the monetary system ever collapses, which is pretty extreme, I'd be worried about a lot more things thing than just the gold in my portfolio.

I agree. I diversified my portfolio and invested some in semi-precious metal as well. Some .30 caliber, some .45 caliber...

[Grampa Dave]

"If the monetary system ever collapses, which is pretty extreme, I'd be worried about a lot more things thing than just the gold in my portfolio."

Over the decades I have found it more than slightly amusing how the ones infected with the gold bug really want a total collapse of our monetary system and the world's.

[Toddsterpatriot]

It can be a useful asset if governments inflate the fiat currency.

So when it drops 13% in a few weeks it's because the government has deflated the currency?

[in hoc signo vinces]

Exactly.

[Grampa Dave]

Our DIL has enough Beanie Babies to help our two families survive for a long time. When the BB's run out, we can use her daughter's/our grand daughter's Barbie Collection.

[Mad Dawgg]

"Even if our monetary system collapsed gold will still have value."

Doubtful, a very wise man taught me along time ago that you can truly measure an item's worth by subjecting it to the "deserted island test" if it would be useful on a deserted island to survive then it has "real value" , otherwise any value associated with an item is subjective at best.

[Grampa Dave]

At least his bike is Gold in color.

[SouthTexas]

Look at the price of copper over the past year.

[rdb3]

Depends on who makes the suit.:)

Armani for me, please.