I mean isn't Gold the only element that has very high value over time? Cash succumbs to inflation but gold doesnt then how come people are investing their money in other stocks that have no value at all?
2006-09-10 18:46:15 · 10 answers · asked by BiCUBIC 2 in Business & Finance ➔ Investing
That's because nobody truly understands gold. You have to remember, gold just came off a 20 year secular bear market, so people automatically equate it as a "bad" investment. That's funny, between 1965 to 1982, the stock market was in a 17 year bear market and lost about 20%, yet people say stocks are a "great" investment.
What you have to realize is that most people "THINK" they know about investing, but they don't. They're amatuers and wanna-be's. The wanna-be amatuers get married to an asset class. You have those people that will tout stocks and hold on to the last share even though prices are going through the floor. A pro doesn't get married to an asset class and has no market bias. They go where the money is to be made.
Think about it, you've got jazzzame saying that gold is so passe and that we shouldn't expect more than $650 per oz. for it. What they fail to realize is that gold is a store of wealth, a safe-haven in bad times. Yes, it does not pay dividends and interest, but it does hold it's value.
Also, as I said earlier, you have to know when to move into and out of asset classes. During the 1965-1982 time frame, the Dow lost about 20%, going from around 1,000 to 772. Yet, between 1976 and 1980 gold went from around $100 per oz. to $850 per oz., a gain of 750%.
Every asset class goes through bull and bear cycles. It is only morons that "think" they know about investing that don't realize this.
You've got the ones who are saying "stocks is the place to be". They saw the sell off from 2000 - 2003 and think it's over. The stock market is still way over valued and the bear is about to grab ahold of it again. And Jazzzame is going to be kicking themselves when gold hits $2000 an ounce.
You are on the right track as not being myopic about investments. Between 1982 - 2000, gold was not the place to be, but stocks were. Now the tide is turning. Equities are going to fall and they are going to fall hard. As the world economic situation erodes, gold is going to explode.
I know that I'm probably the lone voice when it comes to speaking about gold and stocks and most people will think that I'm the proverbialy "fool". So be it. But when the financial markets fall apart and the masses are scratching their heads and crying of their lost money and trying to figure out what happened and point the finger of blame at everyone else except themselves for being so stupid and not paying attention - I'll be comfortably sitting on the sidelines laughing my behind off at them.
No country can continue to pile on the debts that the U.S. has and not face a day of reckoning. The real estate market is just starting to come apart and that's what's been keeping the U.S. economy afloat. It's going to get ugly and the collapse of the real estate market won't be isolated as the U.S. stock market is going to tank like crazy. All the debts that the American Government and U.S. consumers have piled on all these years is coming home to roost and belive me, there is going to be blood in the streets.
I am an American and people will think I'm unAmerican for saying what I did. I love my country, but I am also a realist. No country can continue down the financial road that the U.S. has as not have to pay the piper someday.
2006-09-11 02:47:06 · answer #1 · answered by 4XTrader 5 · 2⤊ 2⤋
There is always a proper time to do such vital investments. Gold rates sometime seem to skyrocketing and sometimes at the low, giving a great opportunity for the investors to take the chance and invest in Gold, and get high returns when the cost is high. This is the idea behind investing. With the fake gold coins coming in the market,people are also finding it difficult to risk in gold, despite it being proven as a safe haven, but making a research on the dealer where you buy gold is the only solution out there.
2014-03-06 18:52:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Because of its use as a reserve asset, the possession of gold is sometimes restricted or banned. For example, within the United States, the private possession of gold except as jewelry or for coin collecting was banned between 1933 and 1975. President Franklin D. Roosevelt expropriated gold by Executive Order 6102, and President Richard Nixon closed the gold window by which foreign countries could exchange American dollars for gold at a fixed rate.
Also, while gold is definately a valuable asset, it won't yield regular returns of 10-15% like the stock market.
2006-09-10 18:49:48 · answer #3 · answered by karkov48 4 · 0⤊ 0⤋
Gold is of value only because people value it. This is mostly due to its historic record as an medium of exchange and its relative scarcity and pleasing color. Sometimes people value it more greatly than at other times.
The main problem with gold is that, unlike securities, there is earning power intrinsic in it. No potential of an increase in dividends, no interest, only the hope of the greater fool.
2006-09-10 21:54:52 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Say you buy one ounce of gold and put it in the bank.
After five years, the ounce of gold will still weigh one ounce. It may be worth more or less dollars, but it won't have grown.
Maybe that's the reason.
If you want to grow your money you can check out the link below.
Let's make money!
Good luck
Marc
2006-09-11 06:01:47 · answer #5 · answered by Marc H. Mayor 2 · 0⤊ 0⤋
the main reason is that gold is up to 650 an ounce it used to be 450 a year ago so people are waiting for it to go down kind of like houses why buy a house for 1 million if it will go back down to 650,000 you would actually lose money if you did this
2006-09-10 18:50:29 · answer #6 · answered by antelias 2 · 0⤊ 0⤋
*Huh!*.....like "gold" is so passe'.......;-)
It made a great investment from 270-650, but I didn't expect much more....do you....?
....and stocks are an investment in a company and its ideas which can carry a lot of weight with others willing to "invest".
Trick is...find areas that are depressed with good reasons to gain strength, and be a bit of a contrairian.
2006-09-10 19:31:22 · answer #7 · answered by jazzzame 4 · 0⤊ 0⤋
1
2017-02-28 23:59:50 · answer #8 · answered by ? 3 · 0⤊ 0⤋
mainly because it is hard to trade. not liike stocks or currencies where u can open a trading account so easily
2006-09-10 19:16:25 · answer #9 · answered by Ed 3 · 0⤊ 0⤋
Um, because the price is going down?
2006-09-10 18:54:33 · answer #10 · answered by dredude52 6 · 0⤊ 1⤋