Dont' panic over gold price

derryb

thanks, corrected:

About Gold: don't panic!!!

Julio

I think you have the wrong link posted. Take care. jws

nibanny

Correct link

HonoluluDude

Why panic? If gold is going down, everything's supposed to be just fine right?

cohodk

Has any other asset class risen 15% in a year?To all these questions, the answer is one and the same: No


Not quite a correct statement. The US and German debt markets have done extremely well. Fact is the 30yr US Treasury--the one everybody said not to buy--has outperformed gold with a 24% return (including interest) over the last 52 weeks.

Then of course there are 100's of stocks that have outperformed.


I think it good that we have free speech in this country, and anyone can say what they want. I just wish these "blogs" were a bit more laden toward fact rather than fear.

derryb

<< <i>Has any other asset class risen 15% in a year?To all these questions, the answer is one and the same: No


Not quite a correct statement. The US and German debt markets have done extremely well. Fact is the 30yr US Treasury--the one everybody said not to buy--has outperformed gold with a 24% return (including interest) over the last 52 weeks.

Then of course there are 100's of stocks that have outperformed.


I think it good that we have free speech in this country, and anyone can say what they want. I just wish these "blogs" were a bit more laden toward fact rather than fear. >>


The statement concerned asset class, not individual assets. Statement is correct.

yellowkid

<< <i>Has any other asset class risen 15% in a year?To all these questions, the answer is one and the same: No


Not quite a correct statement. The US and German debt markets have done extremely well. Fact is the 30yr US Treasury--the one everybody said not to buy--has outperformed gold with a 24% return (including interest) over the last 52 weeks.

Then of course there are 100's of stocks that have outperformed.


I think it good that we have free speech in this country, and anyone can say what they want. I just wish these "blogs" were a bit more laden toward fact rather than fear. >>



Too much "preaching to the choir" on most blogs. My equity income funds have done over 14% the past year, TIPS bonds almost 12%. Be sure to do your homework before acting on information you find "out there." Oh, and a year is a pretty poor window on any particular invetsment, unless you happened to get in and out, in that year.

ricko

I am certainly not in a panic mode.... I like gold, hard, in hand, gold. It will be there and have value when the other fiat currencies plunge. Cheers, RickO

Baley

couple of comments:

those of us anticipating the collapse of the euro and the eventual collapse of the dollar—the last week has been a scary ride:

"anticipating"? as in, "hoping for" a collapse?

"scary"?, as in, "scared it might not happen, that economic systems might not collapse and that's scary"?

the other thing I'm confused about, is:

how come GOLD (an individual commodity) gets to be an asset class by itself, but an individual stock (which happens to have larger returns) cannot?

Seems to me, you either need to compare the performance of a commodity index to the performance of a stock index, or

you can compare an individual commodity like gold to an individual stock like, say, BIIB which is up 60% this year

Seems like insisting on comparing the individual commodity Gold to a diversified stock index is twisting data to make your case.

comments?

derryb

<< <i>couple of comments:

those of us anticipating the collapse of the euro and the eventual collapse of the dollar—the last week has been a scary ride:

"anticipating"? as in, "hoping for" a collapse?

"scary"?, as in, "scared it might not happen, that economic systems might not collapse and that's scary"?

the other thing I'm confused about, is:

how come GOLD (an individual commodity) gets to be an asset class by itself, but an individual stock (which happens to have larger returns) cannot?

Seems to me, you either need to compare the performance of a commodity index to the performance of a stock index, or

you can compare an individual commodity like gold to an individual stock like, say, BIIB which is up 60% this year

Seems like insisting on comparing the individual commodity Gold to a diversified stock index is twisting data to make your case.

comments? >>


Yep.

- those anticipating the collapse are preparing for what they see as the inevitable. those that anticipated the 2008 real estate and collapse and banking near-collapse (and also referred to as fearmongers) were better prepared to profit.

- scared as in our worst fears appear to be coming true.

- gold is an asset class just as is oil. From there you have different, individual gold investments (bullion, mining stocks, paper ETFs, etc.) just as you have different, individual oil investments. Gold as an asset class (as well as an individual commodity) has outperformed.

cohodk

If gold or oil is an asset class unto itself, then so is the 30 yr Treasury bond.

Real estate collapsed? It was a bubble in many areas that popped, but my house is worth more today than in 2006. If I remember correctly, there are only about 50 counties--out of the nearly 1600 in the US--that are responsible for over 90% of the price declines.

derryb

<< <i>If gold or oil is an asset class unto itself, then so is the 30 yr Treasury bond.

Real estate collapsed? It was a bubble in many areas that popped, but my house is worth more today than in 2006. If I remember correctly, there are only about 50 counties--out of the nearly 1600 in the US--that are responsible for over 90% of the price declines. >>


Yep, real estate collapsed, you need to rely on more than CNBC.

All of the houses in Baleyville are worth more than in 2006.

cohodk

This is the 2nd comment in the last few days suggesting that I only watch CNBC. Interesting.


Well, since my house went up in value due to the "real estate collapse", I am eagerly awaiting the value of my dollars to go up in the "inevitable" US dollar collapse. Bring it on!!!

Justacommeman

<If I remember correctly, there are only about 50 counties--out of the nearly 1600 in the US--that are responsible for over 90% of the price declines>

That doesn't sound plausible. But even if it was, probably 90% of the American people live in those 50 counties. How many billions or is it trillions that were wiped of the home equity balance sheets in the US since the collapse of the housing market/housing bubble say since 2006? How many Americans lost there proverbial next eggs? How many Americans has been foreclosed on? How many more should have been foreclosed on but not for Gov. intervention?

Personally I know that the present home I bought in 2005 is probably down 25% in value. (I did also sell two homes in 2005). In that same time I do know that on balance precious metals, commodities both soft and hard, foreign currencies, bonds have generally outperformed the general stock market and housing by a ridiculous amount.

I think gold as an asset class has increased every year for the past 10 years. Maybe eleven. I think that fact sticks in the craw of a lot of folks.( at least 99% of financial guys for sure). Part performance does not guarantee future results

MJ

jmski52

Gold could crash, just like any other asset could crash. Living is risky. On the other hand, I just don't see a huge benefit in keeping assets within reach of the most corrupt financial and governmental "system" that we've ever had in my lifetime. What we've got going on is simply awful.

cohodk

That doesn't sound plausible. But even if it was, probably 90% of the American people live in those 50 counties. How many billions or is it trillions that were wiped of the home equity balance sheets in the US since the collapse of the housing market/housing bubble say since 2006? How many Americans lost there proverbial next eggs? How many Americans has been foreclosed on? How many more should have been foreclosed on but not for Gov. intervention?


I think that actually is the number and agree that it affected a lot of people. BUT, people who lost money simply overpaid for their houses. That isnt my fault. There are people living in very nice houses now that havent made a payment in 2 years. Imagine, rent free housing. Others borrowed heavily from their "nest egg". These people simply spent their nest egg prematurely. That isnt my fault. People were idiots thinking they could afford a house valued at 10x their income. Just like how people were idiots thinking equities would pave their way to a life of luxury. I just hope the "inevitable" doesnt affect the next great asset boom.

jmski52

I wish I knew what the next "inevitable" were going to be, and I wish I knew what the next asset boom was going to be as well.

I know that I'll feel really stupid when it comes about, 'cause someone here on this forum has probably been talkin' about it all along......

roadrunner

Connecticut has 8 counties and I'm quite sure all of them have experienced significant RE price declines. Then in looking at Florida, it has over 42 counties.
I'd bet between Florida and Connecticut alone you'd find 50 counties that have lower RE prices. Then we can look at IL, MI, OH, PA, AZ, CA, NV, NY, etc.

roadrunner

shorecoll

There were probably 50 counties that caused the problem, but more were affected. There were a massive number of spec homes built in Vegas alone, just before the crash, when the crash hit there were an estimated 50,000 still unsold. There are approximately 3,000,000 households who have not made a mortgage payment in close to 3 years, the reason the economy isn't doing worse is those people who aren't paying their mortgage can continue to pay their other bills (and buy more stuff) like nothing is wrong. This is the first crash in modern history where people have done this...maintaining car loan and credit card payments and allowing their house to go into foreclosure. 60 Minutes had a special last night where people are abandoning homes, but many are just staying and not paying. Foreclosure backlogs are so large that, in many parts of the country, you literally have a couple of years to free-load after they tell you it's happening.