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Gold nearing $3,000/oz!

Relatedly, silver has topped $50/oz (!).

Looking back, I’ve bought gold for as little as $277 and silver for as little as $7.66, both starting in the 1980’s. Bought some periodically over the years as the price went up. Significantly, though those seem like bargain prices now, every purchase seemed like the price was pretty high at the time, seeing that $35 gold and $1 silver were both only a few decades in the past.

I still hold it’s impossible to predict price moves in any market, not just precious metals. Gold at $3,000 (or less) or $5,000 (or more) are both conceivable short term. But with the value of dollar continuing to erode long term, metals still seem like a sound inflation hedge.
 
novaphile said:
You've reminded me of an age-old scam, that used to appear in newspapers and magazines (and may still do so for all I know) but now appears on social media:

"Send me $20 and I'll give you the secret for making easy money."

And the secret?

"Put an advert on social media that says: 'Send me $20 and I'll give you the secret for making easy money.' "

Surprisingly it is no where near as common as "Vote for us and you'll magically get rich".
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Vote for me and I'll make myself great.
 
I came across this image recently.

54995003864_5b336c7af7_z.jpg


I think it graphically shows the erosion of the value of the dollar.
 
theprestige said:
I am so sick and tired of the gold = money good investment paradigm. Anyone hung up on that nonsense is a bona fide idiot, as far as I'm concerned.
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If this is what you meant then you are right. There are ways for people to buy gold, such as jewelry. Unless you are very lucky investing the money elsewhere will give better returns.
Elsewhere includes land, where you get rental income, and the stock market.
 
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Trebuchet said:
How does it compare with having invested in the stock market in 1933?
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Not sure, but I think that misses the point. It’s not that gold is a great investment, to be compared to other alternative investments. It’s that it IS a hedge against inflation, or put another way, indicative of the declining value of the dollar.

As an aside, in the 1980’s I was attempting to buy a 1 oz gold coin roughly every month. Back then the price hovered around $300 to $400 an ounce. I mentioned to one seller that most of my investments were in stocks. He said that was crazy - the stock market was insanely overvalued and due for a crash. Worth noting that in 1980 the Dow averaged out at under 900. So it turns out that investing in stocks wasn’t that crazy in the long haul after all.
 
it's usually not a sign of great times when a lot of investors think that gold sitting unproductively in a vault is a good place to park their money
 
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