Does anyone on this board invest in gold? Either in bouillon, SPDR shares, or shares of gold stock(s)?I'm considering investing in shares of Randgold.....not just because the share price could continue to rise with North Korea tensions, but also to have a portion of my portfolio in commodities.I'm semi-retired (mostly retired, I should say), and the money I would invest in gold is not money I would need for many years.
I'm considering investing in shares of Randgold.....not just because the share price could continue to rise with North Korea tensions,William Devane, is that you?And why in the world would North Korea tension have any effect on the price of gold? More old geezers getting stampeded by mid-day infomercials?
Hard to generate an income stream with gold bullion - and the mining stocks are not knownfor dividend growth.Does the concept of owning gold in any form add security and make you feel less vulnerable?As an individual, what do you see as the positive? Do you expect to trade gold on the market?
If you look at the historical return of gold, it's been pretty poor. Every once in a while it really jumps for a year, but that's pretty hard to call--the only people who like that are the ones who endured terrible (low and negative) returns for years, and like to imagine the one good year represents validation of their investment (or the opportunity to promote buying gold by cherry-picking the period for which the return is calculated).The long-haul bad return period even includes the singular event of the US going off the gold standard (during the Nixon years). Even then, it took a while for the price jump to manifest. On the good side, gold is usually negatively correlated to stock returns. Is there any chance that if you bought gold and endured 20 years of terrible returns that you'd jump out right when it was poised to do some good?Caveat: I've been wrong about stuff before. But, usually the mistake was in being too complex, not less complex.
Buy one unit (whatever that may be) of gold. Hold for a month. Try to sell it at a profit.Can you get all your money back? Plus some gain?Because my ETFs and stocks and mutual funds, I have NO problem going liquid again....and if you can't get all or even most of your money back, easily, it's a poor investment. In the end, your investments have to be able to buy a gallon of milk if the need arises. And they don't rely on the "bigger fool" method of investment.
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