Why Gold is jumping?
- Thread starter Daal
- Start date
He's getting to a distinction that is useful. Gold is VERY volatile in its own right. If you intend to hedge against inflation using gold, you just can't run out and buy some gold willy nilly the way the
gold bugs suggest.
If you buy on the wrong side of the gold volatility, then you can spend many years in a badly losing trade which in my book isn't much of a hedge. How much of that gold volatility is explained by inflation and how much are explained by suppy/ demand considerations? I wonder if inflation protection accounts for a minority of the gold volatility. If so, then gold is a very difficult instrument (translation: not a good way) to effect a hedge against fiat currencies losing their value.
Spending years waiting for an inflationary recession doesn't seem that great of a way to lock up your funds.
gold is a good trading vehicle once every few years like this one, but otherwise investing heavily in gold or worse holding a lot of physical is pretty dumb when you think of it. If you really believe Armageddon is upon you , just go get a licence to buy and sell guns and buy a hundred cases of AR-15 and shotguns. If you believe in run away inflation, why not buy other more useful and less volatile hard assets like real estate. Gold is costly to store, you'd be crazy to hold much of it at home and extremely volatile. (some dopes will bury it in their backyard just in case but you' meet them you would probably not think of them as succesful investors).
Besides gold has proved not to be a very good long term investment. It's just a piece of rock, that it is so valuable in man's eye is pretty stupid when you think of it . Really the gold bugs are an irrational bunch, plus they really haven't made much money in the last 25 years with their gold and their pessimistic views .
Besides gold has proved not to be a very good long term investment. It's just a piece of rock, that it is so valuable in man's eye is pretty stupid when you think of it . Really the gold bugs are an irrational bunch, plus they really haven't made much money in the last 25 years with their gold and their pessimistic views .
"Japan drives gold to new 25-year high"
"...Japanese private investors are among the most active buyers of the precious metal, with most of the buying done on the Tokyo Commodity Exchange where the gold and all metal futures contract traded on the exchange ended up by their maximum amount allowable..."
http://news.ft.com/cms/s/d7ff37ba-6b03-11da-8aee-0000779e2340.html
"...Japanese private investors are among the most active buyers of the precious metal, with most of the buying done on the Tokyo Commodity Exchange where the gold and all metal futures contract traded on the exchange ended up by their maximum amount allowable..."
http://news.ft.com/cms/s/d7ff37ba-6b03-11da-8aee-0000779e2340.html