Is investing in Gold stupid?

[kylef]

If the world does go to H-E-double-hockey-sticks, why would gold get valuable? Wouldn't things like water, food, clothing and shelter be far more important.

Gold is a safe haven investment. Whatever is deemed safe haven is safe haven.

 

[contango]

Silver is an interesting idea, a few bullion analysts I've read reckon silver could easily give huge returns. The trouble with silver - it takes up a lot of space. You can hold over $2000 worth of gold in a clenched fist so nobody would know you even had coins there. $2000 worth of silver is five rolls of eagles.

The other thing with silver is the premiums over spot are much higher. A gold coin might trade at 5% over spot, maybe 10%. A silver coin trading less than about 20% over spot would seem cheap.

 

[JM]

I was looking at this site, ScotiaMocatta

 

[SoccerCoach]

So many people these days from radio commercials to my father say gold is the place to put your money. Gold is super inflated in price right now. If its such a great investment how come the sellers on the radio are so hot to be rid of it?

If in the USA the NASDAQ has big drops then buying gold beofre the drops and then selling when they drop allot, you should see big gains. But I think it foolish to invest in gold long term.

 

[bricklayer]

Should the time come when gold and silver is the go to reserve,
it can't be kept without an aduquate investment in brass and lead.

I'm only half kidding.

Brass and lead trumps silver and gold.

 

[contango]

If in the USA the NASDAQ has big drops then buying gold beofre the drops and then selling when they drop allot, you should see big gains. But I think it foolish to invest in gold long term.

Investing in anything over too long a term is probably foolish, unless you can get into the long-term bonds offering double-digit returns like they used to sell many years ago.

Most things go in cycles, the trick is to know when to get in and when to get out.

Should the time come when gold and silver is the go to reserve,
it can't be kept without an aduquate investment in brass and lead.

I'm only half kidding.

Brass and lead trumps silver and gold.

You only have to defend it against people who know it's there. If I ever owned enough gold to be concerned about it you can be sure nobody would know where it was.