Muzie

Enlightening the Gold Bugs

"i have virtually no faith in anyone else holding my money right now. why would i, when the likes of madoff - with credentials, trust/social strength, industry smarts, etc. are out there?"

All money is by "faith", including gold. Can't anyone see this? "Intrinsic" value of gold? What's that? Gold is worth x$ only because the buyer has "faith" that a future buyer will engage in the same belief system as the original buyer, and pay the same price or higher. It's the same thing as a fiat system expect the supply is supposely quasi-fixed.

Why gold bugs get so excited about what is supposed to be a neutral investment s beyond me. With supply fixed, only demand should affect gold.

In a depression, gold will lose its value like everything else as demand decreases.

In an inflation scare, gold will gain value, yet all things will increase in value, including stocks whose cost inputs are very low or fixed.

Is It Time to Buy Gold?

"If you were fortunate enough to know your parents or grandparents you met people who bought things with gold back when gold was the official US money.
"

Haha! Gotta love the internet! Some people here probably in their mid 20s or 30s trying to teach a 78 year old lessons about the Great Depression! Sorry Pop, looks like the young shots here think if they would have lived in the GD, they would have done way better than everybody, right? heh.

Keep it up!

Analysts Are Bullish on Gold: Should You Be Worried?

Majest3, goldis4ever: Funnily enough, in many locales both of you would be way ahead if you simply bought oversized houses with minimal money down (even after the housing bubble is deflating). Ironic, no?

Let's see how this gold trade works out. The entire world expects gold to go up it seems.

Gold Price and Gold Volatility

"I buy banks because I get a very good service from them. I buy AAPL because people buy iphones, ipods and macs. I buy SBUX because I like their coffee. I buy steel because it builds my offices. I buy BA because I fly frequently and they make them. I buy oil because it makes my car go places. I buy pharma because their products cure. I buy WMT because they sell a bunch of stuff that people buy. I buy some utilities cause we need electricity."

Maybe you should look at the performance of each and everry one of the investments you've mentioned. Perhaps it will tell you something about the relevance of your strategy.

I'll take a "no future" holding over a "we priced the future in it forty times already" investment any day of the week.

Precious Metals: Emotions Still Stronger Than Fundamentals

I love how a lot of the authors spend what must be hours or even days putting up some reasoned argument with graphs and detailed research, and some dumb Joe Sixpack commenters come in with two random sentences to clumsily try to kill the author's arguments.

Still No Inventory Reduction at GLD

I will also add the comment that Stephanie should start a website of our own so we can all benefit from her interesting insights without digging through the comment section.

This is an interesting exchange, I think both David and Stephanie's arguments have merit and am enjoying the debate.

Let me offer a third viewpoint, that is actually described in great detail on Mish's global economic analysis blog:
globaleconomicanalysis...

The point being that gold would actually be a:
- deflation edge
- a hedge in panic to safety situations