Bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla, bla,
Beware of Gold-related Investments
Since the gold standard won't be back investors should be wary of buying gold or the shares of gold-related companies because someone claims gold will always have value, or suggests gold may again "back" the dollar or some other currency, or claims that having gold associated with our currency would somehow "fix" inflation or enhance the value of and stability of the dollar.
The reality of today's world is that gold won't return to its previous eminence and its long-run price prospects are poor. But as a great economist once pointed out "in the long run we're all dead." In other words, in our lifetimes gold will always be in demand at some price and that price will fluctuate around gold's trend of long-term decline. The decline is under way. It began when nations went off gold backing for their currencies, dentistry advanced, and hundreds of millions of women in underdeveloped counties began to have access to banks, stock markets, and other ways to store their wealth and earn an income from it at the same time.
In our lifetimes the price of gold will continue its long downward spiral in response to gold's basic underlying market forces. On the other hand, the price of gold on any particular day will fluctuate, often significantly, as new buyers and sellers appear - so some traders will make lots of money and some will lose.
The only thing certain is that long-term investors will lose as the price of gold continues to inexorably trend toward the cost of storing it. Long-term investors should sell their gold and gold-related stocks as soon as possible.
That's what I think will happen and what gold investors should do. What do you think?
If you must read the hole nonsense, please don't:
http://seekingalpha.com/article/319486-why-gold-related-investments-are-slowly-becoming-worthless?source=yahoo
No comments:
Post a Comment