Gold

[Angio333]

I have been considering adding a little gold to my investments. I thought and talked about it before, but never did it. What about you?

Kiplingers has a short quiz to see how much you know about Gold. After taking the quiz, I need to do more research. I only got 6 out of 10! What about you?


ARE YOU GOLD'S FOOL?

[Mr Nice Guy]

I got 6 as well. Those end questions were real humdingers!
I am not even close to being at the point to have a position in gold. I feel like it would something to invest in after paper assets and businesses.

Were you thinking of investing in physical gold or index funds?

[kork13]

Darn... I only got an 8. Personally, I want nothing to do with gold right now. It's riding high at present, and very possibly could stay that way for a while. But I also don't want to be stuck with gold purchased at $1400/oz when it drops back down to $500-$700/oz.

[disneysteve]

Why would anyone in his right mind buy gold now? People have learned nothing from the real estate bubble, the tech bubble and every other bubble. Buy LOW, sell HIGH. That's what you are supposed to try and do. Not buy as high as you possibly can and hope for the best.

[Slug]

I got a 5. Geesh. Glad that I've just stayed away from this investment.

[littleroc02us]

Why would anyone in his right mind buy gold now? People have learned nothing from the real estate bubble, the tech bubble and every other bubble. Buy LOW, sell HIGH. That's what you are supposed to try and do. Not buy as high as you possibly can and hope for the best.

Common sense advice. Gold is at an all time high. Sell!!!

[littleroc02us]

Darn... I only got an 8. Personally, I want nothing to do with gold right now. It's riding high at present, and very possibly could stay that way for a while. But I also don't want to be stuck with gold purchased at $1400/oz when it drops back down to $500-$700/oz.

Ya think? What more do we have to say, Buy low, sell high. Sell your gold that you have lying around if you need money.

[Scanner]

I got an 8.

I guess I knew more than I thought. . .and the only ones I got wrong were:

A. The inflation one (and I could tell it was a trick question. . .but I answered my opinion anyway - yes, it is a hedge against inflation even though Kiplingers said it wasn't)

and

B. Rhodium (I honestly knew the answer wasn't gold. . .but I didn't know if if was admantium, rhodium, or platinum)

I am glad I invested in silver at $13.65.

Best investment I ever made.

My reasoning on why Kiplingers is wrong is in my opinion, if inflation is raging, gold is usually going to go up. Now, will it be 100% correlated? No, of course not, but nothing ever is.

If a Coke costs a $1.00 and it goes up to $2.00, you can be a $100 gold necklace will go up to $200. Yes, gold/jewelry consumption is not the only thing (perhaps a minor thing) that drives gold's price but it is somewhat like any other commmodity.

[snafu]

I bought 'penny' gold stock more than 5 yrs ago but each small company has been gobbled by larger ones. Have one small position, watch it weekly and am working out a stop loss figure. Watch bond positions, interest rates will need to track upward when inflation is acknowledged.
Anyone buying Emerging Mkt? ETF BRIC? ...very popular here

[krantcents]

I have been considering adding a little gold to my investments. I thought and talked about it before, but never did it. What about you?

Kiplingers has a short quiz to see how much you know about Gold. After taking the quiz, I need to do more research. I only got 6 out of 10! What about you?


ARE YOU GOLD'S FOOL?

I can't do it. In spite of that statement, I realized I have an investment in another metal, silver. It is unlikely, I will sell off the silverware, candelabra, candle sticks etc. It is equally unlikely I will sell off my gold jewelry either. It some ways it is like artwork, it is part of the family. I never understood how people look at these pieces as investments. Back to the original question, I would rather have a diversified portfolio in stocks, bonds and real estate. I feel uncomfortable with commodities like gold. That is the main reason, I can't do it.

[Angio333]

I think I have been listening to too much talk radio - they push gold really hard.

[Snodog]

Missed the first 2 and the last one. I think gold is a bubble. It still could go up a thousand or so but eventually it will come down.

[rennigade]

Why would anyone in his right mind buy gold now? People have learned nothing from the real estate bubble, the tech bubble and every other bubble. Buy LOW, sell HIGH. That's what you are supposed to try and do. Not buy as high as you possibly can and hope for the best.

A little over a year ago apple stock was at $190. I kept saying who would ever buy at that price...now it's $340+.

Just because gold is high now doesnt mean it will not double or triple within the next couple years?

What you're basically saying is until a stock crashes you shouldnt buy it?

No one knows what the future holds...we may look back in a year and say how cheap gold was at this time...

[littleroc02us]

A little over a year ago apple stock was at $190. I kept saying who would ever buy at that price...now it's $340+.

Just because gold is high now doesnt mean it will not double or triple within the next couple years?

What you're basically saying is until a stock crashes you shouldnt buy it?

No one knows what the future holds...we may look back in a year and say how cheap gold was at this time...

You can't compare the two because if you look at the history of stocks vs. Gold. Gold has only risen to it's level in the past ten years and has been miserable since they started keeping records. Stocks have been all over the place since the early 1900's and has seen an average return between 10-12%. I would rather bank on a better historical return than a short run up.

[Snodog]

Gold has not been a good long term investment. Google Image Result for http://sites.google.com/site/davesmant/various/dutch-data/untitledpost-3/totalrealreturnindexes1800-2002.jpg