Sakata

Is Gold a Hold?

On Mar 12 10:34 AM GMiki wrote:

> ... Buy from some reputable dealer such as Miles Franklin or Kitco--buy a few ounces at least--and some silver.

I have never bought from Miles Franklin but have heard good things about them. But why would you recommend Kitco? They have a terrible reputation for long delays in delivery.

If you are looking for at least 5oz of Gold or 100oz of Silver go to www.seekbullion.com. It has the best prices out there. Apmex would be my second choice. They are a bit more expensive but there are no delays (unless stated on the website).

Is Gold a Hold?

The author of this article seems to overlook one important fact: investments are made with an expectation of position returns. While I have a lot of respect for Warren Buffett I have to take expection to the quote in this article.

I am reminded of the story of the prisoner sentenced to death. "You will be hung one day next week, but will not know in advance which day it is" says the judge. The prisoner figures he cannot be hung on Saturday because it is the last possible day and he would know in advance. So he can be hung no later than Friday. But it cannot be Friday either, because that has to be the last possible day. And so on. On Tuesday he is surprised to be hung.

This story is sort of like gold. "You cannot buy gold because it had no expectation of positive returns" says the expert. But then one day you sell gold for 100% more than you bought it for. The expert does not believe it happened. But the investor knows better.

Gold is bough not for its dividends or earnings. It is bought because peope believe they will later be able to exchange it for more dollar than they bought it for.