Why gold can make you poor

[loweyecue]

Re: Why gold can make you poor

That is my take as well, but I see this as subject to the possibility of a second "sell everything" market crash in the middle. If a market crash occurs, I expect the price of gold to dip -- but I don't expect it to dip as far, or stay down as long, as the previous case. However, I have a trailing stop loss set on half my paper gold/silver position, for this reason. I figure half my total position is insurance, and half is a trading position. Maybe I get stopped out of my trading position by volatility rather than a crash, or maybe I can pull a hat trick and buy back in at a lower price. Either way, I'm not fully exiting my gold/silver position until we get sound fiscal and monetary governance. That's not on the horizon yet, as far as I can tell.

This post made me feel better. I consider my bullion holdings to be insurance and my paper holdings to be an investment. I too have trailing stops on all ETF holdings. I don't have any gold mining stocks though. Like you I will not part with the bullion till we have a stable currency.

[Raz]

Re: Why gold can make you poor

It's so simple to me, is government going to F things up even more than they have, and has this been factored into the price completely. I say a huge and resounding NO, the amount of government stoopidity hasn't been discounted at all. It doesn't need to get more complicated. Why gnash teeth, we know the long term answer. Buy gold until you can sleep then buy a smidge more to be greedy. Have enough cash to pay your bills. Live beneath your means. Have a brew with your neighbors. We are going to have a smoldering wreck out of this and that means gold.

I fundamentally agree. Not only have both parties become far more corrupt than I ever anticipated, but we the people have become more apathetic, indulgent and spoiled. I see the very real possibility of these United States becoming ungovernable. Given this backdrop I'm hard pressed see how the long-term prognosis for gold is anything but higher.

[Bruno T]

Re: Why gold can make you poor

Thankfully my college fund was put into those super safe Savings and Loan and RCA stocks instead of stupid gold. Oops!

Does the article mention that you could get 18% in a money market fund then? What's the going rate today, 1%?

Or what the return would be today on a share of GM stock purchased in '83?