GaryD

The Myth of Gold as an Inflation Hedge

Why do you inflation adjust the price of gold, but you don't inflation-adjust the price of money? Your analysis makes no sense. Why do you start in 1980 when gold prices had spiked? The proper starting point for the analysis is 1971, when the US was taken off a gold standard. You have chosen a starting point in your analysis that leads to the conclusion that you set out to prove. My friend calls this "the completion backwards principle". It's a telltale sign of a dishonest analyst.

Going for Gold? It's Overrated

Gold is not an investment, it is a hedge (insurance policy) against inflation. A well run gold miner with low extraction costs and high cash flow is an investment. As an insurance policy, it is pretty good since it's value does not go to zero at the end of the term.

Goldman's Golden Message: Time to Short the Shiny Stuff

I agree that GS makes a habit of putting out misleading reports. Their SIV dealing would be criminal if they weren't so well connected. I'm still worried about gold, though. The central bankers and affiliated banks like GS have a vested interest in manipulating gold's price. It wouldn't surprise me to see them drive gold down by, for example, dropping the lease rates on gold. They did this in October and November. I firmly believe that gold is an excellent long-term insurance policy on my money.

Goldman's Golden Message: Time to Short the Shiny Stuff

I agree that GS makes a habit of putting out misleading reports. Their SIV dealing would be criminal if they weren't so well connected. I'm still worried about gold, though. The central bankers and affiliated banks like GS have a vested interest in manipulating gold's price. It wouldn't surprise me to see them drive gold down by, for example, dropping the lease rates on gold. They did this in October and November. I firmly believe that gold is an excellent long-term insurance policy on my money.