Early Retirement & Financial Independence Community - View Single Post - TIPS tip: nix the TIPs, they're worth zip.

chinaco · 05-13-2007, 11:35 AM

Gold is an inflation hedge... but its price pretty much moves on speculation relevant to a specific currency and inflation (in a country).

Gold was about $800/oz us in the late 70's early 80's. Went down to approx $300+/oz in the late 80's and 90's.

If you are going to play with gold... it is best to be contrarian and buy when it is way down. Eventually people will worry about inflation and the speculation will kick in again. Then it is time to sell.

If you buy now... Expect to be buying at the top and getting scr3wed. The only way it makes sense to buy now is if world wide financial markets were expected to collapse or hyper-inflation.

05-13-2007, 11:35 AM	#5
chinaco Thinks s/he gets paid by the post Join Date: Feb 2007 Posts: 3,052	Gold is an inflation hedge... but its price pretty much moves on speculation relevant to a specific currency and inflation (in a country). Gold was about $800/oz us in the late 70's early 80's. Went down to approx $300+/oz in the late 80's and 90's. If you are going to play with gold... it is best to be contrarian and buy when it is way down. Eventually people will worry about inflation and the speculation will kick in again. Then it is time to sell. If you buy now... Expect to be buying at the top and getting scr3wed. The only way it makes sense to buy now is if world wide financial markets were expected to collapse or hyper-inflation. __________________ Planned FIRE Summer 2011 Disclaimer: I make no warranty or guarantee about the accuracy or completeness of this information. I am not a financial planner, my comments only represent my opinion.