[QUOTE=palmetto defender;4004203]Never owned gold and never will.
Had a business friend who bought some in 1981 - around $900/.oz plus some commission. $600 gain in 30 years? Some have made more %recently, but when to sell? Have to pay sales commission there too.
And it doesn't pay dividends. And when you sell, you are taxed at your maximum rate, not 15% as in other long term gains.
Want gold? Buy a mining stock.
The best investments are the usual suspects (XOM, PG, KFT, KO) not quick kills.[/QUOTE]
+1 everyone buys gold, no one sells it. a good stock will outperform gold over time... and might split or give a dividend.
[QUOTE=bitonti;3822800]so here's a simple question if an investor is worried about the American dollar and American stocks... why not buy a chinese stock? or a brazilian stock? or any other stock from a corporation in another country?
If the dollar goes down something else replaces it right?[/QUOTE]
The thing that will replace the US $ are other currencies and $ substitutes like gold and silver.
I bought silver in a certificate program in 2003 - I've never held the physical silver. That investment has seen a return of over 500% since then. If I had of been in the US using your $ I would have seen a return close to 900%.
Admittedly, there have been a slew of resource stocks that have shown a similar return. The world's biggest mining company, BHP, is on our bourse and has shown around 500% return since 2003. Newcrest Mining, the world's second biggest dedicated gold miner is sitting at 600% rise since 2003.
Gold, silver and indeed all other commodities do well in inflationary environments - we are currently in such an environment after governments (especially yours) have been reflating the bubble that was crushed by the GFC.
Commodities hate deflation - during the GFC the price of silver halved - oil slumped in price - I'm pretty sure it saw $30 a barrel US or thereabouts. Gold from memory dropped around a quarter of its price. But once the US Fed started printing money it was up up and away again.
Just on stocks - the problem with picking stocks is that there are so many other factors you have to look at. A stock might look great on paper - ie the CEO might be saying the stock is on track and the chief accountant is making the figures add up, but you just don't know if they are cooking the books or not. If you are going to buy into a stock its always best if you know as much about the company and the management as possible - as well as the industry that company works in. I would suggest this isn't possible if you are buying into stocks in places like (especially) China and Brazil. For example, there is an Australian company out here who is owed hundreds of millions of $ from a Chinese company. They haven't seen a $ of that money and probably never will. The Chinese company is run by a well-known Chinese billionaire who is also involved in several other well-known and supported Chinese companies. If a Chinese company is ripping off another company at that level, what are the chances do you think they would be doing the same to their own shareholders? There are many mafia states across the globe and China is probably one of them.
If you are buying gold all you have to know is that the US Fed printing machine is going - if it is your investment is in all probability going to be a winner. If the FEd isn't printing money and there are deflationary signs about (for example, a sub-prime mortgage crisis that popped your property bubble in the US) it might be time to reassess that position.
(Bloomberg) -- Texas University Endowment Storing About $1 Billion in Gold Bars
The University of Texas Investment Management Co., the second-largest U.S. academic endowment, took delivery of almost $1 billion in gold bullion and is storing the bars in a New York vault, according to the fund’s board.
The fund, whose $19.9 billion in assets ranked it behind Harvard University’s endowment as of August, according to the National Association of College and University Business Officers, added about $500 million in gold investments to an existing stake last year, said Bruce Zimmerman, the endowment’s chief executive officer. The holdings are worth about $987 million, based on yesterday’s closing price of $1,486 an ounce for Comex futures.
The decision to turn the fund’s investment into gold bars was influenced by Kyle Bass, a Dallas hedge fund manager and member of the endowment’s board, Zimmerman said at its annual meeting on April 14. Bass made $500 million on the U.S. subprime-mortgage collapse.
[B]“Central banks are printing more money than they ever have, so what’s the value of money in terms of purchases of goods and services,” Bass said yesterday in a telephone interview. “I look at gold as just another currency that they can’t print any more of.”[/B]
Gold reached an all-time high of $1,489.10 an ounce yesterday in New York as sovereign debt concerns boosted demand for the metal as a store of value. Gold has climbed 28 percent in the past year on Comex.
The endowment, which oversees funds held by the University of Texas System and Texas A&M University, has 6,643 bars of bullion, or 664,300 ounces, in a Comex-registered vault in New York owned by HSBC Holdings Plc, the London-based bank, according to a report distributed at the meeting in Austin.
Been buying since $14/oz. Will continue buying til $100/oz. The dollar is gonzo, it's only a matter of time before our government converts to some other retarded fiat currency scheme. In which case I have preserved the value of my wealth in a timeless commodity.
^ ^ I haven't sold my silver, but that's because of tax reasons (I bought via a certificate program in 2003) - it was pretty obvious the metal had gone parabolic if you'd look at the chart and was due a substantial correction.
It still is in a secular bull market though, and it needs to retreat and consolidate before it can continue upwards. If you look at the chart the uptrend is still intact - despite the recent heavy correction.
[QUOTE=bitonti;4025029]the question you should be asking is "Does it matter?"
[SIZE=3][B]gold is a yellow metal with few industrial or practical uses[/B]. [/SIZE]
there's nothing magic about gold.
[SIZE=3][B]if the Aztecs did actually make a city of gold it probably sank to the Earth's core by now cause gold is heavy as heck.[/B] [/SIZE]
if we, as a society, get to a point where gold is better to have than dollars then it's canned beans and shotguns time and this idea of an investment goes to heck.[/QUOTE]
You wouldn't know Old Gold from Rold Gold, but that's besides the point...keep repeating the same canards, we'll keep laughing...[B]golden cities sinking to the earth's core[/B] like an Atlantean El Dorado is [B]comedy[/B] [B]gold[/B] and the biggest gutbuster yet...my best guess is too much time left in front of the TV unsupervised
Gold is a yellow metal with few industrial or practical uses?
[B]Of all the minerals mined from the Earth, none is more useful than gold. Its usefulness is derived from a diversity of special properties. Gold conducts electricity, does not tarnish, is very easy to work, can be drawn into wire, can be hammered into thin sheets, alloys with many other metals, can be melted and cast into highly detailed shapes, has a wonderful color and a brilliant luster....[/B]
[B]The most important industrial use of gold is in the manufacture of electronics. Solid state electronic devices use very low voltages and currents which are easily interrupted by corrosion or tarnish at the contact points. Gold is the highly efficient conductor that can carry these tiny currents and remain free of corrosion. Electronic components made with gold are highly reliable. Gold is used in connectors, switch and relay contacts, soldered joints, connecting wires and connection strips. [/B]
[B][U]A small amount of gold is used in almost every sophisticated electronic device. This includes: cell phones, calculators, personal digital assistants, global positioning system units and other small electronic devices. Most large electronic appliances such as television sets also contain gold. [/U][/B]
[B]One challenge with the use of gold in very small quantities in very small devices is loss of the metal from society. Nearly one billion cell phones are produced each year and most of them contain about fifty cents worth of gold. Their average lifetime is under two years and very few are currently recycled. Although the amount of gold is small in each device, their enormous numbers translate into a lot of unrecycled gold. [/B]
[B]Gold is used in many places in the standard desktop or laptop computer. The rapid and accurate transmission of digital information through the computer and from one component to another requires an efficient and reliable conductor. [U]Gold meets these requirements better than any other metal. The importance of high quality and reliable performance justifies the high cost. [/U][/B]
[B]Edge connectors used to mount microprocessor and memory chips onto the motherboard and the plug-and-socket connectors used to attach cables all contain gold. The gold in these components is generally electroplated onto other metals and alloyed with small amounts of nickel or cobalt to increase durability. [/B]
[QUOTE=Jungle Shift Jet;4025311]
Gold is a yellow metal with few industrial or practical uses?
[B]Of all the minerals mined from the Earth, none is more useful than gold. [/B][/QUOTE]
ok it's more useful than tin but it's no Platinum or Titanium. if people told me they were buying titanium I'd say yeah that makes sense. they need that crap to make fighter Jets and space ships... all manner of cool things. gold (despite it's small role in the mighty cell phone) is mostly decorative.
[QUOTE=Black Death;4023542]^ ^ I haven't sold my silver, but that's because of tax reasons (I bought via a certificate program in 2003) - it was pretty obvious the metal had gone parabolic if you'd look at the chart and was due a substantial correction.
It still is in a secular bull market though, and it needs to retreat and consolidate before it can continue upwards. If you look at the chart the uptrend is still intact - despite the recent heavy correction.[/QUOTE]