Is gold a good investment or just a trader?

[fearless9]

The general theory is that as the dollar falls people will rush into holding gold and it will go through the roof.

So is gold a good hold?

Last time I looked it, had a very weak correlation with the dollar over the years and certainly nowhere near the -1 you would hope for if you were a goldphile.

Is there some belief that in this very global economy a new gold backed dollar will immerge or are western governments selling gold into these current rallies in the knowledge that gold backed currencies are a thing of the past.

Also, let us bear in mind that as a currency hedge, rental RE bought at the bottom of the cycle can be comfortably leveraged against it's own income, something that gold cannot do.

And so, is gold a good hold or simply a good trader?

 

[Optionpro007]

Best keeper in town for the rest of your life...

 

[fearless9]

Quote from optionpro007:

Best keeper in town for the rest of your life...

History is struggling to support you on this one op007

 

[Optionpro007]

Quote from fearless9:

History is struggling to support you on this one op007

Which history are you referring to ?

 

[gnome]

Gold needs to be traded... with the Big Picture in mind.

 

[fearless9]

Quote from optionpro007:

Which history are you referring to ?

the history of RE against gold

 

[fearless9]

Quote from gnome:

Gold needs to be traded... with the Big Picture in mind.

I believe that gold is a trader.

As a keeper it is too highly manipulated for my taste.

 

[Optionpro007]

Pretty thick subject indeed.

Too many variables to be able to conclude at which point in time one would be better than the other, even though I agree with your income concept.

Gold is liquid. I like that.

Quote from fearless9:

the history of RE against gold

 

[originalskunk]

Quote from fearless9:

Is there some belief that in this very global economy a new gold backed dollar will immerge or are western governments selling gold into these current rallies in the knowledge that gold backed currencies are a thing of the past.

There are some attempts at the moment, with some interesting geopolitical ramifications

http://en.wikipedia.org/wiki/Islamic_gold_dinar

 

[zdreg]

"Is there some belief that in this very global economy a new gold backed dollar will immerge or are western governments selling gold into these current rallies in the knowledge that gold backed currencies are a thing of the past.

don't make me laugh.
the dollar will disappear.
governments sell gold not out of knowledge but to finance their extravagances. one more thing like many investors e.g, British government western governments sell at bottoms never at tops.