Posted on 10/23/2006 7:31:57 AM PDT by Toddsterpatriot
NEW YORK (MarketWatch) -- Gold futures fell early Monday, pulling other metals with them, as oil prices again retreated and the dollar strengthened ahead of a Federal Reserve decision on interest rates.
Gold for December delivery was last down $9.20 at $587.30 an ounce on the New York Mercantile Exchange. On Friday, the contract lost $6 of its value although it scored a modest gain for the week.
The metal was hurt by weak oil prices after the Organization of the Petroleum Exporting Countries' production cut failed to convince oil traders it would be enough to halt a slide in prices.
"The rally of late last week appears to have been a one-day wonder, for the strength that developed Thursday vanished Friday and remains 'in-hiding,' " said Dennis Gartman, editor of The Gartman Letter.
(Excerpt) Read more at marketwatch.com ...
So we agree that theres room for certain types of gold buyers on these threads without them being ridiculed.
I believe that theres room in ones portfolio for PM.
Yes.
I believe that there's room in ones portfolio for PM.
Sure. If you feel the need for an inflation hedge in your portfolio, PMs are one option. In my portfolio I have a natural gas company convertible bond. If gas rises in price, company earnings should increase. This should increase the value of the underlying stock and therefore the bond.
If gas goes down in price, I still receive my interest payment every year.
I do not know if gold will go up or down in the short or long term. Just as I don't know if real estate or any other investment will.
Goldbugs and Gloomers are ABSOLUTELY CERTAIN gold will go up, and real estate will go down. That arrogance annoys me.
Is there any situation in which bonds such as yours become unable to make interest payments or unredemable at maturity?
Arrogance combined with ignorance is why I target goldbugs. They're such easy targets. By definition.
FWIW I can dig up lots of old threads that were high jacked from issues and thrown into name-calling by the gold peddlers. Why bother, we got this one right here.
First a financial news article gets posted and an investor (like Todd) posts graphed data and comment. Gold peddlers don't come back with more numbers --they snipe about "worthless paper". Even your stat about the 10% PM recommendation-- serious investors don't care about what some gold seller recommends, he only cares about stats that show what's happening, like Todd's graph.
Serious investors work for a living so they lean heavy on the numbers. SOP on these threads is for the gold peddlers to shift the conversation from numbers to emotion.
I did not see any name calling by gold peddlers on this thread. Matter of fact I dont think any gold peddlers have posted in this thread.
You don't see something that I see. That's ok, everyone has a different viewpoint here that's what makes this place great.
Of course, my personal interest is less into how "polite" an investor is and more with how successful his strategy is. Seems that investing strategies on this thread are coming in various flavors. One is that gold is going down so don't buy it (see posts 1, 5, 16, etc.) and another is that everyone has his own particular investing strategy and if gold fits into your particular strategy then that's fine (posts 19, 38, 49). Both of those approaches are number (fact) based.
Those who own gold and wish others would buy it too are forgetting the numbers and going for feelings; either by calling other ideas "worthless", by pushing the focus away from investor success over to investor politeness, or by saying gold is "security and not a investment".
Back to numbers. Gold is down both short term and long term. My mother-in-law talked my wife into buying a bunch of gold coins at over $800/oz. That was a few years before I talked her into marrying (the wife, not the mother-in-law) and we haven't owned gold since. We're more financially secure than ever.
Don't get me wrong-- there are some people who consistently make money with PM because they have a serious time-proven approach for knowing when and what to buy and sell. Like with me and stocks. I've just never seen an approach like that for gold presented on any of these threads.
They'd have to get it up to about $1,900 to break even.
You are, of course and as in all things, wrong.
Yeah, too bad that whole down 20% since May short-term down trend is kickin' your ass.
If that long-term 12.5% uptrend continues (snicker) you're still talking about 9 years to get from $578 to $1650. I thought you said that'd be happening in the next 4 years? And paying the fees commissions and interest that you're paying, for a measly 12.5% annual rise is kinda futile, isn't it?
How does my long term uptrend compare to yours? Don't forget my dividend :^)
Why do goldbugs suck so bad at mathematics?
Because only a mathematical idiot would become a goldbug.
I think that's how they recruit. :OD
When you're sliding down the left side of the bell curve, gold starts to sound pretty good!
Gold for December delivery was last down $9.20 at $587.30
$587.30 would look pretty good right now. Ouch.
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