posted on Sep, 25 2008 @ 05:40 PM
Originally posted by dirtydog
reply to post by dragonridr
I got no idea were you got your dis info from, last time I checked gold & silver were commodites. And your statement about know value is absured.
Commodites will never go to zero period. Excuse the spelling but I am so frustrated that I am not going get my dictionary out. But thanks again for
let me try to simply buying gold and silver to you.
The myth of gold as an inflation hedge comes from a rather primitive observation, when the value of money decreases, the value of gold rises. The myth
goes like this: if you bought 100 ounces of gold at the yearly average for 1969, you spent $4109, if you sold it today, you would have $79,400.
That’s a gain of 1832%, or 48%, a year.
Gold sounds like a an excellent investment, right?
Wrong. And here is why.
First, the $79,400 you have now, are enough to buy… 100 ounces of gold. Basically you sold dollars to buy some gold and then sold the gold to buy
some dollars. There is no loss, but neither any gain. The problem however, is that to make any money you would need to trade the gold. Holding
anything without the intention to sell is not a strategy of any sorts. At some point you will need to somehow realize your investment. Otherwise is
just a paper gain and just illusory.
Do to high demands gold and silver is currently the worst investment you can make Value is set by demand investing in gold now wil have the same
effect it did in the 80s. People watched the gold prices drop as inflation grew with gold and silver you have to buy low and sell high.
Does that help?