DeeKay

Gold as an Investment? Think Again

Also--I don't understand the vitriol some have for gold. It's really odd. Like the big pink elephant in the room. It's quadrupled in price yet still so little media attention. Then you have guys like this author going out of his way to bash it as a bad investment--and picking the time frame to justify his argument. Originally the price of gold was fixed at $21.00 an ounce (or was it $21.50)--this was pre-FDR. Now, imagine you bought gold then. You would have seen about a 50-fold increase in your net dollar worth (I know FDR confiscated them--I guess he was a gold bug!). That's not bad for a riskless asset. Gold is money--so it's only an investment if the current medium of exchange is unstable and other investments appear risky. That has been the case for the past 7 years and of course is the case now.

Gold as an Investment? Think Again

Jeez--I don't know how bad an investment it is. You have to know when to buy and sell of course. I was luck to get in in August of 2001. Though I have never been good at playing the corrections (getting better though!) I am up 400 percent. I have remodeled my house, bought a car, paid off student loans, added on to my house and still have money invested. I don't think the Euro fund would have gotten you that far. Incidentally, I have invested in gold mines which may make a difference.

Best!