Gold is NOT an Investment - Here's why:

[Matt Collins]

This 3 minute clip from financial adviser Paul Winkler explains on his radio show why gold and silver are not investments:
http://ultrasonicdesigns.com/temp/WhyGoldisNOTanInvestment.mp3

Paul's website:
http://paulwinkler.net/

[Acala]

This 3 minute clip from financial adviser Paul Winkler explains on his radio show why gold and silver are not investments:
http://ultrasonicdesigns.com/temp/WhyGoldisNOTanInvestment.mp3

Paul's website:
http://paulwinkler.net/

He is correct that gold is not an investment. But by the same definition any equities that do not pay dividends - so called growth stocks - are also not investments.

The follow up question for this guy should be "Okay, point me to an investment that pays more than the REAL rate of inflation which is now 10% and climbing." Answer: [sound of crickets chirping].

Not only are there few if any true investments that are paying anything after inflation, I believe that stock values are about to collapse. Maybe today.

The world is staring down the gaping maw of a fiat money collapse. There is a good chance that from the ashes of such a collapse a gold-backed currency will arise. If that happens, the exchange value of gold will skyrocket.

But the guy is fundamentally correct that gold is not an investment. It is a store of value, a hedge against currency devaluation, and speculation. But in times like this, most investments are a pretty poor risk.

[OptionsTrader]

Semantics.

Call it what you want, trading, hedging, investing...

Gold has beat the shit out of the S&P 500 over the past few years, and the S&P is supposedly an investment.

http://i28.tinypic.com/30xiwyr.gif

[Ozwest]

He is correct that gold is not an investment. But by the same definition any equities that do not pay dividends - so called growth stocks - are also not investments.

The follow up question for this guy should be "Okay, point me to an investment that pays more than the REAL rate of inflation which is now 10% and climbing." Answer: [sound of crickets chirping].

Not only are there few if any true investments that are paying anything after inflation, I believe that stock values are about to collapse. Maybe today.

The world is staring down the gaping maw of a fiat money collapse. There is a good chance that from the ashes of such a collapse a gold-backed currency will arise. If that happens, the exchange value of gold will skyrocket.

But the guy is fundamentally correct that gold is not an investment. It is a store of value, a hedge against currency devaluation, and speculation. But in times like this, most investments are a pretty poor risk.

Gold is a hedge.

You keep investing.

If the shit hits the fan...

I'll insert my golden finger... Wherever.

[muh_roads]

Which is why I like gold.

I don't care to invest. I used to just like putting my money into savings accounts and CD's, but since I now understand that our monopoly money isn't real money anymore and interest rates suck...I'm stashing away gold & silver just as if I was stashing away a savings account.

REAL money savings FTW.

[slacker921]

Not only are there few if any true investments that are paying anything after inflation, I believe that stock values are about to collapse. Maybe today.

The world is staring down the gaping maw of a fiat money collapse. There is a good chance that from the ashes of such a collapse a gold-backed currency will arise. If that happens, the exchange value of gold will skyrocket.

just in case people think only Goldbugs and Paul supporters are saying the fiat dollar collapse is near.. well..
http://www.bloomberg.com/apps/news?pid=20601087&sid=azRci4F1PUGI&refer=home

[Ozwest]

[quote=Paladin69;1541549]Which is why I like gold.

I don't care to invest. I used to just like putting my money into savings accounts and CD's, but since I now understand that our monopoly money isn't real money anymore and interest rates suck...I'm stashing away gold & silver just as if I was stashing away a savings account.

REAL money savings FTW.[/quote

A year and a half ago I invested in gold.

Sold 8 months ago.

Any share traders willing to stand up to my margins?

Getting ready to invest again in early August. Might make some money.

Any share offerings? Tips?

[Matt Collins]

The follow up question for this guy should be "Okay, point me to an investment that pays more than the REAL rate of inflation which is now 10% and climbing." Answer: . Paul@PaulWinkler.net - he reads his own e-mail and will probably respond. Tell him you heard his radio show the other day talking about gold.


But the guy is fundamentally correct that gold is not an investment. It is a store of value, a hedge against currency devaluation, and speculation. But in times like this, most investments are a pretty poor risk.Not over the long term. Even during the depression if you looked at any given 10 year rolling period you will see that the market still increased in value.

To grow one's wealth over the long term intelligently investing in the market with a properly diverse portfolio into specific asset categories is the way to go.

[Allen72289]

gold is an investment if you mine it. =) Gold fever

[Ozwest]

Paul@PaulWinkler.net - he reads his own e-mail and will probably respond. Tell him you heard his radio show the other day talking about gold.

Not over the long term. Even during the depression if you looked at any given 10 year rolling period you will see that the market still increased in value.

To grow one's wealth over the long term intelligently investing in the market with a properly diverse portfolio into specific asset categories is the way to go.

I know you are involved in radio, but you must be a disgruntled share-holder.

Hoping for the best...

Am I right?

[Paulitician]

I agree somewhat with this guy. I don't consider physical gold an investment as much I do gold stocks. Gold should just be used as savings as it generally retains purchasing power, and only when it's in a bull market. But I think he made the statement that gold is down 10%--yeah, only for its year high. Starting from the beginning of the year, gold is up 11% (http://www.marketwatch.com/news/story/metals-stocks-gold-futures-fall/story.aspx?guid={921C59DD-66A2-4F8E-B0D5-9EBA8CCBA57E}&dist=hplatest). So WTF? If you were trading in the ETF and sold at 1000 bucks, which everyone knew was going to be the top, you would have made 20% on your money. I'll say, that isn't too bad. Silver is even outperforming gold (up 15%). I don't understand what's wrong with this guy's head.

[Matt Collins]

I know you are involved in radio, but you must be a disgruntled share-holder.

Hoping for the best...

Am I right?
No I have zero investments. I am trying to pay off college debt before I begin investing.

[Ozwest]

No I have zero investments. I am trying to pay off college debt before I begin investing.

I somehow don't believe you.


Now your only option is to become a drug dealer.

Life's a bitch.


It can be quite satisfying.:D