Wife wants to invest in gold

[silverpig]

Gold isn't something you invest in to make money (or shouldn't be). It never pays a dividend, it never pays a coupon, and the earth doesn't do gold buybacks. You put your money into gold because your regular investments are losing you money. Your average joe is just a speculator with a random guess when he buys gold as an investment. "I think it's going to go up. China, economy, devalue, interest rates. My wife saw a commercial."

Right now the economy is picking up. A lot of stocks have appreciated 100% in the past year. These are real companies run by real people doing real work and providing real value. A hunk of gold just sits there. If you buy gold at $500 and it goes up to $1000, part of the reason is demand (although as already mentioned, that isn't much of an issue as supply increases due to the economic viability of some mines only at higher gold prices). The other part is because your currency just devalued. Well, that gold doesn't do anything for you sitting in your bank until you convert it into cash. Converting it back into devalued cash is a wash. Sure you have more money, but it buys less, so are you really better off?

If you want to actually invest in something which has exposure to gold prices, a good way to go would be to throw some gold mining companies into your portfolio.

 

[totalnoob]

Short gold.

You realize this is the equivalent of saying "go LONG the dollar" right? lolol Good luck with that one buddy.

 

[tcsenter]

I'm betting it all on gold-pressed latinum.

 

[iGas]

Wife is some what right because most analysts believe that gold will hit $1200~$1300 an ounce by the end of this year. However, gold price is now $1150~$1160 therefore there is very little room left to gain from it.

 

[iGas]

You realize this is the equivalent of saying "go LONG the dollar" right? lolol Good luck with that one buddy.

Depends on how long he can short gold for. If he doesn't have to perform gold buy back in the next 3 months then it would be okay to short, otherwise he might lose his shirt over it.

 

[shadow9d9]

Tell her to start flipping houses. I was told on tv it is a good idea.

 

[WHAMPOM]

Wife is some what right because most analysts believe that gold will hit $1200~$1300 an ounce by the end of this year. However, gold price is now $1150~$1160 therefore there is very little room left to gain from it.

Have the wife do as commercial gold buyers do, buy all her friends "junk" gold jewelry at half the going price. Cut out the middleman.

 

[Arkaign]

If you go gold, make sure you actually get actual physical gold to throw in a safe or something :

http://www.redstate.com/common_cent...old-market-solid-as-24k-or-manipulated-ponzi/

"It was also admitted that there is approximately 100X gold paper leverage to every ounce of gold"

Basically, you can't totally fail with Gold. You probably won't get rich either, it's a hedge. There is a possibility that if the paper manipulation schemes get ripped away from Gold, that the price for physical gold could skyrocket. Who knows.

 

[alkemyst]

if it were 2002, i'd say it's a grand idea. A little late on the train now, though.

qft.

 

[nerp]

You realize this is the equivalent of saying "go LONG the dollar" right? lolol Good luck with that one buddy.

It was a joke, Mr. Seriousness.

 

[ultimatebob]

Let me guess... your wife was one of those people who wanted to buy .com technology stocks in 1999, get into the house flipping business in 2007, and invest in oil futures in mid 2008.

Silly girl... you can't profit off of a bubble at the END of it!

 

[JS80]

Buy Aussie dollars and the Yuan

 

[LegendKiller]

They would be right.

fed money printing is unprecedented..

as is the debt..

Doesn't matter. The amount of money that evaporated is far more. Not to mention this can be brought back quickly and already has been through the elimination of CPFF and several other programs.

 

[LegendKiller]

You're exactly right. And gas prices will sky rocket because people in China will be buying cars and motorcycles not riding bikes anymore. Food prices will skyrocket as well because they will be able to afford a lot more than rice. Most Americans will live paycheck to paycheck just to pay for necessities.

This is exactly why I can't take you seriously. You've got no brains at all for anything 2 steps ahead. You're supposed to be some shit-hot "investor" hobnobbing with the muckety mucks and you can't even figure out how this would play out?


Ok, lets take a second here so I can explain it to you.


If the Yuan revalued, their goods would certainly become cheaper, initially. That is, until their economy utterly collapsed because it's completely export driven. This, in turn, would cause their currency to plummet, coming back to a reasonable level.

As far as them buying cars, they'd have no fucking money you dolt. They have no consumer economy, no self-sustaining cycle, nothing. China is merely the factory of the world and one that's hurting.

At this point many analysts are seeing that China has bad loans ~50% of GDP. Entire cities are empty and factories are shuttering.

As far as 10 years for the dollar. This has been said throughout the last 8 decades. It was said during the GD, after WW2, through the 50s, 60s, 80s, and 90s. Doomsdayers are never right because they have tunnel vision.

 

[TechHead87]

Also, your wife needs to stop watching fox news for financial advice.

This

Most of these ads run on conservatively-slanted media. Fox/Rush/etc.

The folks consuming this media honestly believes the Obama man is trying to tank the U.S. dollar and takeover the whole world.

Men lie...women lie. Numbers don't.

 

[Hacp]

You realize this is the equivalent of saying "go LONG the dollar" right? lolol Good luck with that one buddy.

The dollar can rise in comparison to gold and still fall in value in comparison to other currencies.

 

[TruePaige]

This is exactly why I can't take you seriously. You've got no brains at all for anything 2 steps ahead. You're supposed to be some shit-hot "investor" hobnobbing with the muckety mucks and you can't even figure out how this would play out?


Ok, lets take a second here so I can explain it to you.


If the Yuan revalued, their goods would certainly become cheaper, initially. That is, until their economy utterly collapsed because it's completely export driven. This, in turn, would cause their currency to plummet, coming back to a reasonable level.

As far as them buying cars, they'd have no fucking money you dolt. They have no consumer economy, no self-sustaining cycle, nothing. China is merely the factory of the world and one that's hurting.

At this point many analysts are seeing that China has bad loans ~50% of GDP. Entire cities are empty and factories are shuttering.

As far as 10 years for the dollar. This has been said throughout the last 8 decades. It was said during the GD, after WW2, through the 50s, 60s, 80s, and 90s. Doomsdayers are never right because they have tunnel vision.

THANK YOU for posting a common sense answer. I came in here to post something very similar.

 

[Crono]

As a hedge (preservation of wealth), yes.

Not for investing.

 

[Jadow]

This

Most of these ads run on conservatively-slanted media. Fox/Rush/etc.

The folks consuming this media honestly believes the Obama man is trying to tank the U.S. dollar and takeover the whole world.

Men lie...women lie. Numbers don't.

"This is G Gordon Liddy saying BUY GOLD"

and "I'm the captain from Law and Order SVU saying BUY GOLD"

 

[TXHokie]

Wife is some what right because most analysts believe that gold will hit $1200~$1300 an ounce by the end of this year. However, gold price is now $1150~$1160 therefore there is very little room left to gain from it.

Are these the same analyst that predicted 17,000 DOW during its run?

 

[Hector13]

I wonder if everyone who thinks that gold is at an all time high is sure enough to go out and short gold.

The truth is, like any other investment, there's a chance it can go up and an (risk and value adjusted) equal chance that it can go down. No one knows for sure either way. Anyone who tells you otherwise is likely lying (especially an informercial).

 

[iGas]

Are these the same analyst that predicted 17,000 DOW during its run?

Yup! that they are.

 

[Rudee]

now is the time to buy gold

No. The time to buy gold was well before it was over $1100k/ounce.

 

[silverpig]

No. The time to buy gold was well before it was over $1100k/ounce.

$1100k???

 

[TruePaige]

$1100k???

Damn, I should have bought when it was only $1100 an ounce!