First, Gold Price on May 7th was around $1,640. Ended the week at $1,580 approx. Unfortunately, Vince cannot even understand the basics of gold, as as to make a statement like that is just pure funny.
Neither does 24K. The value of gold doesnt change? WTF? The value of gold is just as speculative as the value of some stocks.
{giggle} Ron, I remember when you stated in 2010 that Gold would be the same price next year as it is today. I believe gold was at $1100, then. A year later, it was at $1920. I thought it would be bad form to do the Scrubs 'I told ya so' dance, so I kept silent, ...tho I giggled so hard I almost peed.
Yes, the value of gold doesn't change. It still buys today, what it bought in years past.
eg: In the early 1900's a brand new Ford off the assembly line would cost you $850 or approx 1.3 kilos of gold.
Today however, to acquire that same Ford off the assembly line, you'd be looking at a whole lot more than $850, much closer to the $40K+ price range. Coincidently enough, if priced in gold however, it would still be 1.3 kilos of gold.
Otherwise, people would be investing only in gold. But they don't. I don't. I have friends who have it is is a wild ride, going from 1,500 to 1,800 and back down. My speculation on gold is that it will settle around in the $1,500 eventually, and go down as the economy goest up in a few years.
Gold has an inverse relationship to paper money. It's price is only a reflection of the value of paper, not a reflection on it's value, but rather a reflection of the value of paper. As the value of paper goes down, the price of gold goes up, however, it's purchasing power is retained.
If you saved $300 / month for the last 20 years, you would have saved a total of $72,000
HOWEVER due to inflation, the $72,000 that you saved, would only give you the purchasing power of $56,000.
Had you instead been putting that $300 / month in gold, even though you'd still be saving $72,000 over that time period, you would instead have the purchasing power of $232,000.
Which would you prefer? $56K in purchasing power representing a $16K loss due to inflation
...or $232,000 in purchasing power?
$56,000.oo or $232,000.oo
I know which one I would choose.
I will stick to misc stocks, and dividends, it seems to work better for me in the long run.
To each his own, ...but even the IMF is choosing gold. Looks like they're not too confident in paper derivatives, or the credit markets these days, 'cause they're looking to acquire $2.3 Billion in GOLD. Gee, dju think that might be why the price went down a bit, ...so they could acquire even more of it? Now ask yourselves, why would the IMF want gold when they can simply push a button and create a number of zeros to lend out at interest? They are sooooo close to the printing presses, yet they want GOLD? curious... don'tcha think?
