Bye Bye Gold Nonsense

[opebo]

Hope none of you fellows own gold.  Situation reminds me of the early 1980s.  Anyone ever read Rabbit is Rich by John Updike?  I can't remember if in the book he makes money on the gold nonsense of the late seventies, loses money, or both makes and loses money at different points in the plot.  Enjoyed the book though.

[opebo]

I remember gold when it was in the $600+ range......

I remember when it was in the $35 range.

Yes. at that time a large V-8 sedan cost 3 months pay, a good house 4 years pay, with full employment and a 90% top tax rate.

[opebo]

The traditional rule of thumb has always been that gold goes up in bad times and down in good times, right?  Then this is good news, no?

Most people seem to agree on that point, definitely, Mikado.

However I would like to apologize for my use of the term 'nonsense', since it might have hurt the feelings of those who invest in gold or who believe that we are in an apocalyptic economic situation.  I should have said, 'the period of gold appreciation seems to be waning'.

[opebo]

...I would like to apologize for my use of the term 'nonsense', since it might have hurt the feelings of those who invest in gold or who believe that we are in an apocalyptic economic situation.  I should have said, 'the period of gold appreciation seems to be waning'.

I'm sure not acting like a pompous jerk feels horrible.

Well, being unable to express opinions does feel horrible, but it is our cross to bear in memory of what this forum once was.

[opebo]

Anyway, there is no opinion you're not allowed to express so I assume you're simply full of nonsense as usual.

Not at all. I was given many infraction points for expressing my opinions regarding the recent alleged shooting.

[opebo]

gold nonsense

Haven't read the book, but buying and selling gold isn't nonsense.  I purchased 12 kruggerrands at 250 per troy ounce about ten years ago, and five years later sold them for 700 each.  I paid 3000 dollars, waited five years and get 8400 dollars when I sold.  One of the best investments I ever made.  I wish I'd bought more, or waited a little longer to sell them.  Nonsense it wasn't.

Have you ever read Rabbit is Rich?  I quite like that novel, and I suppose you're not at all unlike Rabbit.

[opebo]

Can't say that I have.  

I just read a little synopsis though.  "Rabbit...  no longer feels the pull to run.  But satisfaction causes a few problems of its own."  I guess that's how I am.  But Rabbit owns his own business and at least two houses.  Rabbit is rich, after all.  I'm not.

Pretty damned close.  Rabbit makes quite a few bucks on Cougerrands, and I think he also loses at least as much, in the book. 

Actually I'm surprised that have those rands anymore now that apartheid has been ended.

[opebo]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

Wrong. It has peaked and will soon fall spectacularly, just like oil. It isn't that hard to spot these bubbles. When "everybody" is talking about them and how great they're doing (ditto for real estate few years back) it's time to sell, or if you're adventurous, short in a big way.

Yeah, but, but Staglefation!  Oh wait a minute, it still fell in 1980.

[opebo]

I have a gold anecdote - a colleague has about 2,000 dollars spare to invest and can borrow lots of money at a low rate from the credit union.  Her mom has made quite a profit (unrealized) on her gold - I guess she keeps around 50,000 of her retirement money in gold, a strange habit Southeast Asians have.  At least this old lady just buys 'gold stocks' as they call them here.. I'm not sure what it is, a way to play the gold market without having to lug the gold around.  I know another family here (Chinese-Thai of course) that reputedly has about one million US in real physical gold hidden in their huge fortress-like house.

So, anyway the daughter's been considering investing at least the 2K in gold and possibly borrowing another 8 or 10 to do the same! I basically said 'well far be it from me to interfere, but I wouldn't do it'.

[opebo]

Inflation hedges don't do well in a deep dark deflation.  Listen to uncle opebo.

[opebo]

How is it he knows what a 'claw back' is and yet can't write intelligibly?  It is interesting - from the writing you would think him a mental patient, but I looked up 'claw backs' and it is something in the 'financial world' (I hadn't heard of it).  Perhaps it is a madhouse over there.