Timing the market is hard, not spending your gold savings is hard when the kids are hungry, just living long enough for this example to work is harder still.
+1. I like the book, but I really didnt like this example. You could pick any number of asset classes and with the benefit of hindsight have the same remarkable outcome as the one listed above. I agree that cycles are the way to go, but predicting them at all, forget picking them at the highs and lows would be incredibly hard.
Yes, but the example given was exactly that, an EXAMPLE. Even if you got it 10% right you would still have over 1100oz of Gold VS 1.5oz of Gold. I know which i would prefer! My main point was regarding the whole "gold is for life" statement. If you had that attitude 100 odd years ago your $30 (1.5oz of Gold) would only be worth approx $2100, you would STILL only have 1.5oz of gold. With the benefit of THAT hindsight we all should be able to realise it maybe isnt the smartest move to hold onto any one asset class indefinately.
The problem with this is that it forces the price of silver up for industry. Other than that the idea is generally good. So.. better if operated with gold. The reason silver is nominated is because that is the history and product of Mexico. No problem with that. If they succeed in this in Mexico, it would be an interesting novelty. A new silver ounce or gold ounce under the British Pound though...
