I'm not going to get into a pi$$ing match with you, yes you are right I have not cashed my Gold in (because I think it is going much higher), so I have realized just a "paper profit." But you also must realize that investing in any product, company or commodity does not realize a profit until it is sold.
I would rather have my money invested in something that has been valued everywhere for the past 2,000 to 4,000 years than pieces of paper (dollars, yen or euros) that are guaranteed by nothing and are being created (printed) at a rate never before seen in the history of the USA.
People that owned Enron at $80 or Global Crossing at whatever are broke now. Nobody will ever be broke owning Gold, although I will cede that it has been a poor investment for the past 10 years. Maybe you should take note on the goings on in Argentina and Japan right now. Fiat currency has failed everwhere it has been used in the history of the world.
Again I ask, how have your investment choices done lately?
Gold is fiat currency, too. It only has value because others say it has value, just like paper.
Worse, gold doesn't have the economies or militaries of nations supporting it.
In fact, gold has been banned from private ownership (i.e. near-zero investment value) up until the mid-1970's in America. With the stroke of a pen gold could be banned again.
Moreover, anyone who discovers a large goldmine will soon have the market flooded and the price devastated.
Other factors weigh heavily on gold, too. For instance, South Africa is currently devaluing the Rand. As that currency plumments, more gold can be mined profitably there, and most of that will be sold into the market abroad.
Thus, the supply of gold increases every day, but where O where will all of those gold-sellers find more and more suckers buyers??
I'm not going to get into a pi$$ing match with you, yes you are right I have not cashed my Gold in (because I think it is going much higher), so I have realized just a "paper profit." But you also must realize that investing in any product, company or commodity does not realize a profit until it is sold.True enough. But I would rather put my money into something that generates income as opposed to just sitting there, looking shiny.
I would rather have my money invested in something that has been valued everywhere for the past 2,000 to 4,000 years than pieces of paper (dollars, yen or euros) that are guaranteed by nothing and are being created (printed) at a rate never before seen in the history of the USA.
If there's ever a serious economic reckoning of the sort the gold-selling fearmongers describe with lip-smacking relish, gold will be worth a LOT less than some good land, a good rifle, and lots of ammo and nonperishable food. I have that little detail taken care of.
People that owned Enron at $80 or Global Crossing at whatever are broke now.
It's the risk of investing. People who bought gold at $800 an ounce lost a ton of money, too.
Nobody will ever be broke owning Gold, although I will cede that it has been a poor investment for the past 10 years.
Tell that to my neighbor, who bought 250 ounces of gold in 1980, figuring he'd make a killing no matter what. He held onto it, and still holds it, just WAITING for the gold market to bounce back. His $200,000, after factoring in 22 years of inflation and the decline of gold, is now worth $32,560.30 in 1980 dollars. That WAS his life's savings. It's gone now. Oh, well.
Maybe you should take note on the goings on in Argentina and Japan right now. Fiat currency has failed everwhere it has been used in the history of the world.
And so has gold-backed currency--again, EVERYWHERE it has been tried. All currencies fail eventually.