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Has anyone seen a gold bug recently?
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Daniel_Elkington wrote: »no, there is one for soy beans but not peanuts, go figure...
If I bought peanuts as an investment then after a few weeks I'd be out of pocket and very fat as I'd have scoffed them all.
Remember the saying: if it looks too good to be true it almost certainly is.0 -
Daniel_Elkington wrote: »What confuses me is that gold is essentially worthless, you need a tiny amount for certain electrical circuits but holding it as an investment seems a bit mental. Like holding any commodity, it is really a bit silly. I know people who have their entire portfolio in Gold, that is a 100% investment in a single commodity.
Look at indexmundi.com, it's really interesting, did you know that peanuts are up 32% over the past 12 months, whilst Gold is up 11.48%, meaning peanuts were a better investment that Gold over the last year.
Maybe we'll see an equally moronic flight to peanuts!
I had a meeting with a commodity fund manager at work and asked him exactly the same thing.
His reply was "it's used for jewellery and some electronics, which I agree, isn't a lot, but for some reason, I would hazard a guess at history, it is used as a generic currency more than a material now. A lot of people in China hold it for wealth"
He was very much against gold being used as a material and more of a currency.0 -
Daniel_Elkington wrote: »What confuses me is that gold is essentially worthless, you need a tiny amount for certain electrical circuits but holding it as an investment seems a bit mental.
Reminds me of this quote by Buffett:Warren_Buffett wrote:“Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”Never let the perfume of the premium overpower the odour of the risk0 -
Does anyone remember that old movie, Trading Places? Wasn't that OJ futures?0
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gadgetmind wrote: »They do seem to be rather quiet. I wonder why?
I guess they are too busy buying this wonderful dip.
And why do central banks still hold and continue to accumulate huge amounts of this barbarous relic? cRazY Fools
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I guess they are too busy buying this wonderful dip.
But that's what's odd. They are quiet during dips yet ramp like !!!!!!!s when it's all well toppy.
OTOH, equity !!!!!s such as myself get all jiggy during dips then sulk a bit during the froth,
Odd, odd, odd.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Daniel_Elkington wrote: »What confuses me is that gold is essentially worthless, you need a tiny amount for certain electrical circuits but holding it as an investment seems a bit mental. Like holding any commodity, it is really a bit silly
This is correct but why dont people apply this logic to notes of paper with 'I promise to pay the bearer'
They dont even tell you what you are promised, at least if you have a chunk of metal you could make a ring from it I guess but sure you are correct
Your criticism is really of speculators. Why own more dollars then you have taxes to pay in dollars. Why own more gold then you need to make jewellery.
Food is a commodity, I guess we can overinvest in that also
Houses are very useful, yet they screwed that up too.
Dont hold too much of anything but you are going to want at least a bit of gold if you will hold cash in future. 1% is better then nothing and its cheap now
I still think gold is a bull market, we are above prices of 1 year ago. It has fallen for a long time now but not that long that its failed to hold value.
Im sure one day some currency will have good rates and easily beat gold, right now I see trouble and politics on many fronts and paper is the weakest link.
All they have to do is wipe out its value to solve the problems; its more temptation then a good man can bare
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sabretoothtigger wrote: »This is correct but why dont people apply this logic to notes of paper with 'I promise to pay the bearer'
Cash is also an asset, index linked cash even more so. This can out perform many other assets, including gold, for significant periods.
I don't think anyone here denies that gold has a role in a portfolio. However, the gold bugs tended towards the "sell your grandmother, buy gold, bury it under the floorboards" end of the sanity scale, which can grow wearisome after a while.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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