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.

[bgwah]

Buying gold seems like something StatesRights would do.

[memphis]

Was bound to happen. Speculative bubbles can't endure. Wonder if the suckers who bought into Beck's gold campaign will realize how thoroughly they've been had. Doubt it.

[Grumpier Than Uncle Joe]

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

[Torie]

It is called chasing past performance, or in other parlance, buying high. It is as sure fire a recipe for sub par investment performance as there is out there short of just doing a zillion trades and eating up your portfolio with transaction costs.

There is a rationale for having maybe up to 5% of your portfolio in gold, because its price performance in the past has had a small, but reliable, negative correlation with the price movement of equities.  I don't bother with it myself (don't sweat the little things is my motto, and the steady drum beat of buy gold now ads on right wing talk radio offends me, and gives the metal a connotation akin to the ring in Lord of the Rings), and at the moment, gold is arguably in a price bubble.

When the price of gold tumbles, watch for the gold bugs to blame it all on a government conspiracy and manipulation by assorted and sundry secret cabals.

[Torie]

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

I remember when it was in the $35 range.

[Grumpier Than Uncle Joe]

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

I remember when it was in the $35 range.

Ah, in the Dim Time.  Wasn't there......ha ha.

[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.

[Grumpier Than Uncle Joe]

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.

We knew you'd find a way to sneak in oppressive taxation rates. 

[Verily]

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

In three years, it will be there again.

[Grumpier Than Uncle Joe]

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

In three years, it will be there again.

I'm woefully inept at economics......what caused the meteoric rise?

[Verily]

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

In three years, it will be there again.

I'm woefully inept at economics......what caused the meteoric rise?

Scared investors. That's what always causes gold to fluctuate.

[Free Palestine]

I've seen those "buy gold" commercials during Freedom Watch on the Fox Business Channel, and in some "oh noes, teh new wurld order" magazine my mother found.  I always thought it was bullsh-t.

It would be best to stock up on something that would be of value during an apocalypse: alcohol.

[TeePee4Prez]

I've seen those "buy gold" commercials during Freedom Watch on the Fox Business Channel, and in some "oh noes, teh new wurld order" magazine my mother found.  I always thought it was bullsh-t.

It would be best to stock up on something that would be of value during an apocalypse: alcohol.

Think I read an article where after the Russian Revolution that vodka was worth more than gold.  Also remember the end of Schindler's List.

Funny, I've actually watched Glenn Beck to try and make sense of his retarded economic theories like QE2 will cause $16 Hershey bars and boxes of Domino powedered sugar will cost over $100. 

[phk]

For the first time in 100 trading days, the price of gold (using the front month futures contract) dropped below its 50-day moving average.  This ends the third longest streak of trading above its 50-day that the commodity has had since 2000.  

The prior two streaks ended back in 2002 (124 trading days) and 2008 (143 trading days). All times of uncertainty.  As shown in the charts below, in each of those periods the price of gold took some time before rebounding to prior highs.

[True Federalist (진정한 연방 주의자)]

I've seen those "buy gold" commercials during Freedom Watch on the Fox Business Channel, and in some "oh noes, teh new wurld order" magazine my mother found.  I always thought it was bullsh-t.

It would be best to stock up on something that would be of value during an apocalypse: alcohol.

Think I read an article where after the Russian Revolution that vodka was worth more than gold.  Also remember the end of Schindler's List.

Funny, I've actually watched Glenn Beck to try and make sense of his retarded economic theories like QE2 will cause $16 Hershey bars and boxes of Domino powdered sugar will cost over $100. 

He must prefer small candy bars and big boxes of powdered sugar if he's expecting a 1:6 ratio in their relative prices.  Perhaps he has French toast every morning or maybe he's just making up numbers that sound impressive.

[The Mikado]

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?

[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'.

[Gustaf]

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'.

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

[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.

[Gustaf]

...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.

Maybe it will allow you time to think of something new to say. Being on repeat for several years must become nauseating in the long run. Or at least that is what I imagine.

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

[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.

[angus]

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.

[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.

[angus]

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.