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Social Clubs / Deranged Monkey Criticism
|Subject: Re: Poll: Technical Analysis||Date: 5/14/2013 3:59 PM|
|Author: EightTrack3||Number: 17120 of 25001|
From my point of view there are no fundamentals for gold:
- no revenues
- no earnings
- no cash flow
What are the fundamentals for a Monet Haystack painting? Or a 1995 Mercedes Benz 300SL Gullwing? No revenue, no earnings, no cash flow. Certainly a Gullwing's value is not the imputed rental value of the Benz.
Supply and demand. The same factor that determines the worth of a 20 pack of McD Chicken Nuggets affects the value of gold nuggets.
The fundamental value of gold is that it is a precious metal, limited in supply, whose value cannot be easily destroyed by government intervention. The same cannot be said for stocks, bonds, or currency.
Gold has fundamental value to Cypriots, Greeks, Venezuelans, Argentinians, Syrians, etc. Is it a barbarous relic? Of course it is, until and unless you world is filled with unpleasantness. At that point, it's the most fundamentals-based investment of all.
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