Makloda, what is your opinion on buying indexes VS individual stocks. Obviously the risk reward is different.
Not if you took part in the $7billion in straight preferreds of Fannie Mae that were WIPED OUT by the gov't. or BSC or LEH The US gov't has rewritten the law of the land and that has always marked the top of civilizations. Gold will have value as long as the nation is obedient and follows the law of the land. Once the nation has the perception that it is gov't vs the people, it's all men for themselves. All the money in the world, all the working out and special training means sh*t to a bullet.
I certainly don't agree with putting 100% of an IRA or savings into precious metals, but your examples show a clear bias. 1981-2000 is the best 20-year period for stocks ever, and it was a horrible time for gold. Your examples play on both anomalies. Why not also compare the Nikkei since 1990 to gold? You donât think the same thing could happen to U.S. stocks over 20 years? We've already had 12-13 years of almost no gains and declining dividends.
I don't think gold was ever a good investment. Reasons: 1) Cost money to store it 2) Doesn't generate interest/dividend 3) Many safe haven substitutes 4) Doesn't impress the ladies as much as diamond does (Women never goes, "Check out the gold on this ring" to their friends) 5) Costly to verify if it is real or not Gold had a good speculative run. It is done.
Heh. We'll see. Given your user name, I'm not surprised you're a gold skeptic who believes the 80's-90's are some sort of economic status quo. I imagine this thread will be re-surface at some point, though...
I never said anything regarding economic status quo, but I wouldn't be surprised if gold price goes back below $1000 as a result of overselling.