Here is WHY Gold is a Bad Investment

[hobber123]

Shortie
just wonderin' why you took the price at the last bull market high. I don't usually comment here but thought this was a poor illustration of true performance. Purchases done during the last bear market low 300-400/5-10 dollars would show much different results.........then again I guess the same people who paid 1000/50 oz are the same that bought into the logic that real estate only goes up......... IMHO

 

[shortie]

Quote from hobber123:

Shortie
just wonderin' why you took the price at the last bull market high. I don't usually comment here but thought this was a poor illustration of true performance. Purchases done during the last bear market low 300-400/5-10 dollars would show much different results.........then again I guess the same people who paid 1000/50 oz are the same that bought into the logic that real estate only goes up......... IMHO

i just copy-pasted the article. did the author choose the starting point to illustrate best his point of view?

 

[hobber123]

sort of Shortie, the S&P was at its low (+-) gld/slv at their highs (+-) Funny how silver went right up to 50 dollar mark again then backed off hard 30 years later. Guess everyone saw this and took a little piece.

 

[shortie]

SLV +6% today. somebody's Shorts could be on fire soon.

 

[tradingjournals]

Is SPY/GLD back to Ben's line?

 

[shortie]

not exactly, but it is close. there is some uncertainly where the Line lies exactly.

things are happening too fast: away from the Line very quickly and now back as quickly. not sure what that all means.

 

[shortie]

 

[tradingjournals]

Quote from shortie:

not exactly, but it is close. there is some uncertainly where the Line lies exactly.

things are happening too fast: away from the Line very quickly and now back as quickly. not sure what that all means.

Maybe a main turning point, or people feeling disoriented (including/dueto spreaders)? CHF currency seems to be showing those parabolic looking moves. At this rate a swiss janitor would be earning more than a US professor, if it is not already so.

 

[maler]

Shortie, I think you are right in a moderate to high inflationary environment.
In a hyperinflationary environment, I believe gold will outperform stocks.
One supporting datapoint is the German Weimar hyperinflation.
100 ounces of gold invested in the German stock market in 1913
would have been worth:
36 ounces in Dec 1918
16 ounces in Dec 1919
19 ounces in Dec 1920
21 ounces in Dec 1921
6 ounces in Dec 1922.

I believe the main reason for underperformance is that
when the government runs the printing press fast enough,
they confiscate not only savings or bonds but also the
operating profit of the companies in between the time
the profit is generated and the time it is distributed to shareholders.

 

[murray t turtle]

Quote from shortie:

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Nice long term chart, silver did better in 1987 than i thought;
probably not as good that chart shows if it had been started in 1980.

On the other hand silver looks better than US Steel & Mr Morgan bank , in 1929