During steady economic times, yes. During crisis times, no. Many folks over the age of 75 have folders full of stock certs that are worth exactly the paper they are printed on, plus the ink. Their paper assets went to zero.
You may believe (based on your life experience) that stocks are literally better than gold, but don't bet on them holding their value (much less increasing) across a period of economic turmoil and dislocation. You may wind up with a stack of "Confederate War Bonds," as has happened time and again over history. (Or in the modern era, a series of zeros on your computer.)
Now, that might be beyond your experience horizon I'll grant you. You do need to read history to discover this.
Are we entering such a time? Paul Volcker is one of those you may have heard of who says yes.
Of course, you are free to just laugh it up. That is your right.
PM from Professional to Travis, yesterday.
Re: Dollar dives as US slump spreads
From Professional | 10/19/2007 8:47:34 PM PDT read
Financial genius? Wouldn’t that be you, mr. “thousand dollar gold next year” prognosticator? You’re just mad, cuz you’re a gold bug, and think that this “object” is your savior. You know, thousands of years ago people knelt for gold. Know where it got them? Let me guess, at one time, you were in the financial biz, couldn’t hack it, got fired, been pissy ever since? Go back to your bomb shelter, get your Ron Paul poster, and go to bed with it you crazy gold bug. He he he, loser.
Ok, point made. Sorry about that.
Hats off to anyone meaningfully in gold the last two years, and I know would actually agree, that 1000 on gold is not just possible, but probably will happen. The chart would indicate that the next few months will be very strong. But after that.... the chart is very similar to many bubble charts, same type of volatility moves, steeper up as she goes.