Dont' panic over gold price
derryb
Posts: 36,793 ✭✭✭✭✭
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
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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.
Knowledge is the enemy of fear
<< <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.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <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.
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?
Liberty: Parent of Science & Industry
<< <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.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
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.
Knowledge is the enemy of fear
<< <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.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
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!!!
Knowledge is the enemy of fear
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
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
I knew it would happen.
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.
Knowledge is the enemy of fear
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......
I knew it would happen.
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