A panic spike is just the parabolic part of the rise, you can get burned buying anything at that point. The "elevator down" is part of the phrase that's specific to gold; it takes the esclator up and the elevator down. An overnight devaluation, like what FDR did after all gold was confiscated, is not a "complete collapse" of the currency.
IMHO, short and leveraged short ETFs are an asset class. They absolutely crushed everything this year, without exception.
That sort of behavior only makes sense in a hyperinflation scenario where the dollar is losing value by the minute. That's not going to happen. This is less likely than hyperinflation occurring.
True and I am glad to have had money in SRS and SKF. But from a fundamental medium to long term view I like gold. Trade in other assets and put the profits in physical gold is my play.
It seems gold fans fall into two categories: 1. People who think of it as an "investment" as opposed to a "trading vehicle". I have no problem with that if you can make money with it, good luck to you. But, make no mistake, it is a "tulip bulb" you are trading...greater fool....really no different than trading IPO's in the tech bubble...companies with no INCOME trading for large dollars, LOL 2. The "doomsday" aspect of gold.....this is the Ron Paul crowd..go back to gold standard... I think gold is ripe for a very shocking pull back....in the area of below $200/oz...very fast.... Be careful.....and good luck SteveD
An ounce of gold bought a cow during Biblical times. An ounce of gold bought a cow during the Dark Ages, and an ounce of gold buys a cow today. Can you name any other easily portable currency with that kind of millennia-long track record?
So you are saying one can go to the auction house, buy a $700 milk cow and hand over an ounce of gold? And that gold with be freely accepted without question? That brings up another question. Can one take a bar of gold into Bank of America and exchange it for US dollars in cash or just have the money deposited into your account? Just curious.. SteveD
I don't know where you live, but in my neighborhood the cows run towards you if you have the gold. They'll trample over their fence, open their mouth, and take their deposit. I guess they are waiting for hyperinflation as well... One ounce of gold will buy a stake in charter flight on some saudi airline to drop them off in a land where their milk will provide a lifetime of leisure in greener pastures, most likely in the middle of a desert somewhere near dubai. (don't ask about the state chartered pilgrimages to mecca where goats and other livestock come on board)
No, he's saying that gold as a storehouse of value is as stable as they come with thousands of years of track record. No, you have to take it to a gold dealer. Any mom and pop coin/jewlery shop or your more respected bullion dealer will buy. People aren't suggesting gold will be used as money/currency, rather as store of value. The 'gold will never be used as money' argument is moot. Also, why gold vs other commodities? It's the easiest thing to hold physical of and easily the most commonly traded off-market. Hard to do anything with a $50 barrel of oil.