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« ETF Update: Health Care Legislation and Drug Stocks | Main | Bespoke Investment Group 2010 Roundtable »

December 21, 2009

Comments

jimstout7878

I wonder what it is going to be like to sell gold in Albuquerque in the next 20 or so years? This economy is not heading in a good direction, that's for sure.

Andrew Murray

I have investments in gold - it cannot be manipulated like paper fiat money. That's why it's safer in times like these.

Gold Coin for Sale

I am going to apply these principles to everything and buy gold accordingly. Thanks!

oldprof

Jim -- Thanks for this bit of info! I am reminded of John Hillerman, who played Higgins on Magnum PI. This Texan fooled many Brits with his accent, learned from studying Sir Laurence Olivier.

A good chuckle for us all.

Jeff

CordovaJim

BTW Jeff, I chuckle every time I see that same gold ad because the "British accent" is actually Jane Metzler who for years was the news anchor on Ch. 7 in Albuquerque. She then went on to work for Don Imus for a number of years, then I lost track of her until this gold commercial started running. LOL.

Doug Digger Eberhardt

The Street.com article you reference is full of misinformation.

I critique that article here: http://fedupbook.com/blog/gold/bloomberg-and-the-street-com-think-your-money-is-better-off-in-the-bank-than-in-gold/

As far as the comments about gold, to Andy I say that we are still in the second and longest cycle for gold, and to Mike, there are some advisors who recommend gold as portfolio insurance, but more as a hedge against U.S. holdings than headline risk. Typically, 80% (give or take) of a portfolio in the U.S. is U.S. Dollar based. But I still don't see too many advisors recommending it. They just don't understand it. It was never taught to them as part of their required understanding even in preparation for the CFP exams.

Also, regarding the pricing of gold, from 1971 to 1999 there really wasn't any competition to gold, but after 1999, the EURO became viable as competition and a few years later, ETFs, including gold ETFs offered investors very liquid alternatives to protect themselves from a falling dollar.

Mike

I've chuckled at the same commercial, and I'm a retired ad guy! I suspect that randomly chosen 5 year periods wouldn't show a consistent, positive return on gold. It seems a very unstable investment in that sense. Nevertheless, many advisors recommend a small position in gold as portfolio insurance against headline risk.

andy

"I have never seen a great investment where the first information came through advertising."

And you don't see the above in gold either, as the "first information" was a long time ago. This is mid cycle or maybe even late cycle, and there are adverts running to sell your gold (at a crappy price) which are way more numerous than the odd buy gold advert.

When you see the shoe shine guy putting his proceeds into krugerrands at $3000 each and taxi drivers calling multi thousand dollar gold a bargain, then you will now the top is near. But right now, the taxi drivers and cleaners put their money in IRA's, CD's and savings accounts yielding 1%, so don't panic...

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