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Social Clubs / Deranged Monkey Criticism

URL:  http://boards.fool.com/gold-is-valuable-is-not-money-costs-money-to-30685522.aspx

Subject:  Re: Poll: Technical Analysis Date:  5/15/2013  2:48 PM
Author:  NajdorfSicilian Number:  17142 of 21503

Gold is valuable, is not money, costs money to store and insure, is significantly more common and slightly overpriced compared to platinum which has more usefulness both industrial and jewelry, and has *not* been a store of value the past 30 years.

Gold bugs merely assert it is a store of value. Over the past 3 decades you'd have been better off in stocks, long Treasuries, or corporates, or high-yield, or even money markets. Gold lost 85% in real terms from top to bottom.

Not long enough? Ok, I take your criticism and raise you 80 years of data. The S+P 500 is up 796% in real terms. Gold is up about 130%.

But gold sure is yellow and shiny! However, inflation is better for stocks than commodities. [You can calculate your own returns for Coke, IBM, P&G, JPM, HSY, TR, CL, Bell, GE, Lorillard, DD, Cigna, MO which will crush the S+P].


If events occur such that your only hope is that people are requiring gold instead of currency, you will have most definitely have wished you instead invested in food, water, rifles, ammo, and farmland instead.
Not gold.




Source: S+P, BLS, The Economist.
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