21–30 of 41 posts
Gold _has_ been a solid investment for the past 8 years. It went from a low of $255 in 2001 to a high of $1,213 in 2009. So a 475% rise in 8 years.
Yes, and in 1981 it was ~$800. Which means a return of ~50% over 29 years while paying no dividends whatsoever. You can make pretty much anything look like a good or bad investment if you pick your start and endpoints carefully.
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I'm not sure that's true. There is no value in gold, it's imaginary and over time, people have tended to give up beliefs in imaginary things.
No, it's not imaginary. Far from it. Gold is not like tulips in Holland. Not even remotely. It's value is in its scarcity, divisibility, and durability. Nothing else compares. Never has (unless you want to say Silver). That is why gold has been money for thousands of years, and that shows no signs whatsoever of changing. It is one thing that no matter what the markets do will still have value. Is it an investment? No…
Earlier quoted context omitted.
Yes, and in 1981 it was ~$800. Which means a return of ~50% over 29 years while paying no dividends whatsoever. You can make pretty much anything look like a good or bad investment if you pick your start and endpoints carefully.
Some people always say gold is a great investment, other people always say it's a terrible one. Both sides are wrong.
Earlier quoted context omitted.
I'm not sure that's true. There is no value in gold, it's imaginary and over time, people have tended to give up beliefs in imaginary things.
No, it's not imaginary. Far from it. Gold is not like tulips in Holland. Not even remotely. It's value is in its scarcity, divisibility, and durability. Nothing else compares. Never has (unless you want to say Silver). That is why gold has been money for thousands of years, and that shows no signs whatsoever of changing. It is one thing that no matter what the markets do will still have value. Is it an investment? No…
Gold has real value as, for example, a material used in electronics. That is about it aside from aesthetics.
Additionally, humans ascribe (nonexistent) value to gold for the reasons you mentioned. You can certainly argue, as some others seem to, that being suitable for use as currency is value inherent but that assumes the necessity for currency. In the past, perhaps.
edit - and smelled as well
It's always possible that a major catastrophe will destroy our economic system, but its far more likely that we will either limp along or improve. I remember the same fears in the seventies, and the concomitant buying of gold, at the same time as the price of gold spiked to $800.00. Yes, the economy was turbulent, but that's not an indication of imminent total meltdown. In the past year the price of gold has been at…
It's always possible that a major catastrophe will destroy our economic system, but its far more likely that we will either limp along or improve. I remember the same fears in the seventies, and the concomitant buying of gold, at the same time as the price of gold spiked to $800.00. Yes, the economy was turbulent, but that's not an indication of imminent total meltdown. In the past year the price of gold has been at…
Because people are heavily influenced by the "panic! panic!" media nowadays.
Supposedly things would "never be the same again" after September 11 and the industry for comedy would collapse. Then we were meant to be dying of avian flu.. and then swine flu. And then the economy was meant to collapse some time in 2009. And then.. oh yeah.
Another panic, another year..
Earlier quoted context omitted.
No, it's not imaginary. Far from it. Gold is not like tulips in Holland. Not even remotely. It's value is in its scarcity, divisibility, and durability. Nothing else compares. Never has (unless you want to say Silver). That is why gold has been money for thousands of years, and that shows no signs whatsoever of changing. It is one thing that no matter what the markets do will still have value. Is it an investment? No…
Scarcity does not equal value, if value is defined as "something that is useful." Perhaps the language is deficient in not making a distinction between inherent and assigned value. Gold has real value as, for example, a material used in electronics. That is about it aside from aesthetics. Additionally, humans ascribe (nonexistent) value to gold for the reasons you mentioned. You can certainly argue, as some others se…
Earlier quoted context omitted.
"without question" I question. You clearly take that as virtually axiomatic, but I question. Gold's ultimate value is that it is pretty and shiny, and industry has produce metric shitloads of prettyshiny since the last time gold had any real independent value as uniquely prettyshiny. Your gold is only worth what people will give you in return for it. If society collapses, who is going to trade you gold for food? You'…
No. Gold's value is in its intrinsic suitability as an instrument of exchange, far more than any other substance on earth. Can you point to any time in the history of civilization where gold has been worthless? I mean, really, any period of time from, say, the days of the Babylonian empire until today? Just what about today's times have changed the intrinsic value of gold? See my other post in this thread for just wh…
Really, I think gold is interesting because it's rare and thus coveted.
edit - no offense if you enjoy gold, I was just making sweeping generalizations for expediency