Genuine question: Why are you 'anti' gold people on a precious metals forum putting in contra arguments to gold ownership. Or is it just gold 'investing' that you are against?
I am not sure whether I fall in this category? However reviewing your investment choices like reviewing all choices in life is a healthy exercise. I bet you that if gold had risen 30% in 2013 instead of dropping 30% you wouldn't hear anyone questioning their decision to invest in metals.
For the first time since Warren Buffet took control in the 60's, Berkshire Hathaway returns have failed to better the S&P 500 over the past 5 years. In other words, buying the S&P 500 over the past 5 years would have been a better investment decision than doing whatever Warren Buffet did.
Those dollars you talk about, go to alot, gold being just one example, and a dropping price means that people move those dollars to other things. And the cost of mining is quite irrelevant for gold, we have had many years of a stable mine production, yet the price sweeped up and down like a yoyo. And why? Because of that ever increasing stockpile that gets sold and bought back. Central banks sold many thousands tonnes in the decades ahead of 2011. To suppress the gold price for those that bought it during 1970-1980, as to give them less dollars when selling the supposed inflation hedge. And since 2011, central banks bought instead. Over 1000 tonnes in just a couple years. Because people still want to buy gold and they want to keep the price higher so that they receive less. It's obvious that they will become again net sellers once this is over. Your stockpile growth / far exceeding dollar expansion argument is only true in mathematical terms, not in economical terms, and in the end, only the latter matters (purchasing power). So it's a bogus argument, that applies to ALOT, if not all products. It doesnt make gold better or worser relative to these instead of the dollar. An expansion/reduction in supply is for gold mostly based on ownership shifting of existing stocks, mining having little to nothing to do with it. Just look at the gold recycling, near to no industrial part in it, purely existing stock owners selling whatever holding gold. <year> <recycled tonnes> <average price> 1997 631 $331 1998 1108 $294 1999 620 $279 2000 619 $279 2001 749 $271 2002 872 $310 2003 985 $363 2004 878 $410 2005 897 $445 2006 1126 $603 2007 956 $695 2008 1217 $872 2009 1672 $972 2010 1653 $1224 2011 1611.9 $1572 2012 1625.6 $1669 2013 ???? $1411 Recycling doubled over the past 5 years. The mine production trend: About hanging around 2600 tonnes. Makes it quite clear eh? What's not logical about the silver market? A metal doesnt behave, it's trading people that behave, and silvers market is visited by more newbies that dont have much clue about what it going on / its market, as illustrated by the blind belief of the Zerohedge etc bullshit. Others take advantage of these newbies, so what do we have: for every ounce a newbie buys, the money for nothing club buys 2, driving price twice as fast as 'normal'. But lack of knowledge is solvable, central banks crap isn't, because the latter have legal manners to get/do what they want. And there is plenty silver to hoard. How I know? Because the hoards prove it, haha. Look at the ETF's. These didn't exist 5 years ago. They hold now about 500-600 Moz. Look at all the coins produced the past decade. I have many myself haha. Central banks just need to order, and it will be made available. It's not a coincidence that the silver mine production increased from 650 to 800 Moz in the recent 5 years. More demand = higher price = more profit = more investment in production = more silver. But if central banks would have stockpiled silver, I would have stepped aside silver just like I stepped aside gold.
It's amazing how two people can look at the same picture and see two different things. We're making slightly different points to support different viewpoints but it doesn't matter because, really, you don't care if I stack gold and I don't care if you don't.
I am anti-snake oil sales people and anti-permabullcrapers, not anti gold people. Julie, you remind me of those people who conflate criticism of egregious behavior by the Israeli gov't with anti-Semitism. You really ought to pay closer attention to what people are criticizing here. .
Play the ball, not the man. Meanwhile, others can make their own mind up, they don't need you to make it up for them. It's their money, they own the decision. There are many different choices, none are necessarily wrong.
Get a grip man. It's not a difficult question and I fail to see any pejorative tone. So read the post again and ponder the meaning of the actual words. It's not like I said anything nasty about crypto-currencies or defended socialism you know!
^ You've got to be joking. Do you even read your own comments??? You are the cast iron kettle calling the stainless steel teapot black.
Currencies will fail and governments will be strained. People will suffer and the financial market will be full of pitfalls. If I invest in PM I probably won't loose much but keeping money in the bank or buying stock I could loose it all. If silver and/or gold soars so much the better but I'm not making big plans just yet. I do know that I don't trust in anyone but myself the day the dollar comes tumbling down. Counting on huge payouts from PMs is just as speculative as playing the stock market. Hopefully a tad safer though.
The word will has so much certainty - the truth is no one knows what's next. It's all a(n educated) guess.
