LRDave
Thinks s/he gets paid by the post
Unless you are a manufacturer of some product in which Au is a component, no. It's just a metal with some interesting properties - good and bad.
Or the international equivalent of Beanie Babies.
seems to have quite a bit more staying power.Or the international equivalent of Beanie Babies.
No, gold is not worth owning. Please send all of yours to me; I promise to give it a good home.
Ha
First, we have ~8% of our assets in GLD. Since GLD was founded in 2006, it's risen from $44 to $115. Au is not a not a commodity as it doesn't get/hardly gets consumed. It's always there. Net, I'd rather hold it than greenbacks - which keep getting printed nilly willy. Think of how much the US$ has risen vs. other currencies & yet Au still outperforms it. So just why would you want US cash or low pay CD's vs. Au? Now if you'd rather invest in something than hold cash, maybe you have something. Try thinking of Au as the standard instead of the USD and think of the USD as the commodity.
The stock paid dividends 96% of the time? Gold pays dividends 0% of the time, right?My Mom owned shares of Rath Packing, which operated from 1891 to 1985. "Through two world wars, stock market panics, depression, and drought, the company had failed to show a profit in only four of its years".
My Mom owned shares of Rath Packing, which operated from 1891 to 1985. "Through two world wars, stock market panics, depression, and drought, the company had failed to show a profit in only four of its years". Their Blackhawk Indian chief emblem was omnipresent in any grocery meat and deli area. Pretty high quality stock. Then they went bust and weren't worth anything. Don't think that has happened to gold in like, ever? For hundreds or thousands of years?
Mom also had Enron through the bust, and we had GM and BofA. (can you tell we are real stock pickers?) All fine stocks until they weren't. Gold holds a different role in a portfolio.
For the equity part of my allocation, me too.I would rather own high quality equity that grows dividend faster then inflation rate like PEP or CL.
For those contemplating “paper gold”, note that there is not enough physical gold on the planet to make good on all of the outstanding contracts.
By "paper gold", do you mean ETF's backed by physical gold ounce for ounce, or options? Agree with you on the latter. Those are the primary cause of so much volatility.
For the equity part of my allocation, me too.
Except that its supply is constrained. Also, dollars are a proven loser over time, gold is so far and for long time, a proven winner. Not a moon shot, but not bad.The stock paid dividends 96% of the time? Gold pays dividends 0% of the time, right?
The true value of gold based on its utility (use to industry, etc) is a small fraction of its market value. The balance is due to very fickle demand based on . . .sentiment, habit, belief that another buyer will eventually be found at a higher price, whatever. But in many ways it is just as much a "fiat currency" as paper money.
You mean junk silver?Diverging, I understand that even US “juke silver” coins have been faked.
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Except that its supply is constrained. Also, dollars are a proven loser over time, gold is so far and for long time, a proven winner. Not a moon shot, but not bad.
Ha
Good for you. I have no regrets owning GLD.I allocate 100% of my money to equity. At age 50 no regrets so far.....
Your charts show holding gold is way better than holding cash & by inference, low interest CD's. I don't see your point.Gold as a proven winner?
It was for five short years in the late 70s and early 80s. Then a big fat loser until 2002. The last ten years it was back in business. Recently, not so much.
Gold Price History
and in real terms:
Historical Gold and Silver Prices - 100 Year Chart | MacroTrends
All of that gold is still in inventory. And some of its value is cultural buying by Indians (dowry) and Chinese.
Might as well invest in lottery tickets and hope you hit it big (my not so humble opinion).
Good way to look at it. Doing so thus makes holding US currency/fractional % interest rate CD's/bonds way more speculative since 1975.No gold is not a safe hedge in my view, it's more of a speculative alternative currency play.