Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Next Thread
Author: toreic Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 27546  
Subject: gold Date: 8/9/2006 11:33 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
new to investing as the following question no doubt will prove, but with the world such a mess , is gold a reasonable investment/, oil
Print the post Back To Top
Author: wrjohnston91283 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13884 of 27546
Subject: Re: gold Date: 8/9/2006 11:58 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Gold and oil, and other commodities, are generally considered riskier/more complicated investments.

A company makes a profit (good ones at least) and each year they grow (hopefully) their profits. The value of that company is the present value of future profits, plus the value of whatever the company owns (very simplified).

Commodities don't do anything. They are worth something because other people are willing to pay for them. If you buy 100 ounces of gold and the price goes down, you've lost money. Price goes up you make money.

A company that mines gold will make money (generally) regardless if gold goes up or down. They will make MORE if the price is high, but it generally costs a mining company much less than the spot price of gold to mine/process it.

Price of Gold since 1975:
http://wrjohnston.net/storage/au75-pres.gif

If you bought late 1970's ($100/oz) and sold today ($600/oz) you would make 500%.

If you bought Barrick Gold in 1985 (farthest back Yahoo finance goes) and invested dividends, you would make almost 10000%.

If you invested in the stock market as a whole (s&p) in late 1975, you would have a return of roughly 1700%.

Now, that is all in the past. Perhaps it will be different in the future.

WRJ
//who is buying several ounces of silver a year so I can eat in the .00001% chance the American economy wipes out; gets aluminum foil helmet out...DON'T READ MY BRAIN!


Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
Author: Quillnpenn Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13885 of 27546
Subject: Re: gold Date: 8/9/2006 12:22 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
toreic,

It most certainly is as a Defence group. In your defence folder, you should be looking at:

CVX, XOM, AAUK, ABX, AEM, AU, CCJ, DROOY, GFI, GG, GLG, KGC, LIHRY, MDG, MDU, N, NEM, PAAS, PD, RGLD, RTP and SWC.

for the ETF's, look at: SLV (silver is also an excellent defence stock), IAU, GLD.


http://goldmoney.com/index.php?mc=0&cc=840
http://www.gold-stocks.com
http://goldstocks.stockgroup.com/snapshot_quotechart.asp?ticker=AAUK

Hope this can help. I am,

Quillnpenn - a professional swing trader in "Buying from the Scared, Selling to the Greedy"
"in tribute to all who seek to record their ideas and share them with others"


Print the post Back To Top
Author: NYMogul Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13886 of 27546
Subject: Re: gold Date: 8/9/2006 4:45 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
I bought two ten oz bars from a local dealer. One bar was produced by the Johnson matthey refinery and the other from Pamp Suisse. I held on to them for about a year then when gold shot up to about 730 an oz I thought about selling them but held on to them because I wanted to keep them into the future. Gold retraced back to the upper 500 level then back to 650 per oz and I finally decided to sell. I bought both at 520 an oz. Gold is good to hold an a hedge against inflation and world disasters but IMO there is no real way to gauge why it's going up. I find it to be a more speculative investment then equities.

NYMogul


Print the post Back To Top
Author: wrjohnston91283 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13891 of 27546
Subject: Re: gold Date: 8/9/2006 6:36 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Gold is not really an investment. You buy it then have to store it, usually not free. It pays no dividends. Gold is a Speculation not an investment.

Like Kahuna said, and I was trying to say in my original rambling reply, gold as a commodity is not an investment. You are speculating that the price will rise in the future against what YOU paid for it.

Purchasing a gold mining company however, is not speculating. Gold companies have been making profits for centuries. As long as the price of gold is more than their costs, they will make money. If you are seriously considering gold, I would considered purchasing a good mining company rather than the metal itself.

WRJ

Print the post Back To Top
Author: toreic Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13892 of 27546
Subject: Re: gold Date: 8/9/2006 6:38 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Thanks all, most helpful.

Print the post Back To Top
Author: bogwan Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13913 of 27546
Subject: Re: gold Date: 8/11/2006 9:29 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Saddly, Gold is currently a winning speculation.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Next Thread
Advertisement