Comments on: The Paradox of Gold http://www.fundmasteryblog.com/2007/09/14/the-paradox-of-gold/ Mutual Funds, Investing, Retirement, Economy, Personal Finance Tue, 16 Mar 2010 16:32:14 +0000 http://wordpress.org/?v=2.3.1 By: WealthFly » Advisor Blog: Fundmastery http://www.fundmasteryblog.com/2007/09/14/the-paradox-of-gold/#comment-430 WealthFly » Advisor Blog: Fundmastery Fri, 28 Dec 2007 18:58:15 +0000 http://www.fundmasteryblog.com/2007/09/14/the-paradox-of-gold/#comment-430 [...] The Paradox of Gold [...] […] The Paradox of Gold […]

]]> By: Ace http://www.fundmasteryblog.com/2007/09/14/the-paradox-of-gold/#comment-198 Ace Fri, 28 Sep 2007 07:53:24 +0000 http://www.fundmasteryblog.com/2007/09/14/the-paradox-of-gold/#comment-198 Interesting charts. It looks to me like gold has substantially outperformed the Dow since 2001, almost tripling in value over the last 6 yrs. Other interesting charts to look at include the USDX (the US dollar is at a 15+ year low against a basket of foreign currencies) and the Dow on an inflation-adjusted basis (it has actually lost real value over the last 6 yrs). Gold is largely a commodity-oriented investment. Like other commodities, it is currently doing well compared to stocks. Basing an investment decision on the fact that gold hasn't reached or exceeded it's previous high is just silly. Commodity bears and bulls tend to have very long cycles (20+ yrs). Should you buy gold based on high government debt? No. Should it be considered as part of a commodity-weighted portfolio, and as a hedge against the declining value of the USD? Absolutely. Interesting charts. It looks to me like gold has substantially outperformed the Dow since 2001, almost tripling in value over the last 6 yrs.

Other interesting charts to look at include the USDX (the US dollar is at a 15+ year low against a basket of foreign currencies) and the Dow on an inflation-adjusted basis (it has actually lost real value over the last 6 yrs).

Gold is largely a commodity-oriented investment. Like other commodities, it is currently doing well compared to stocks.

Basing an investment decision on the fact that gold hasn’t reached or exceeded it’s previous high is just silly. Commodity bears and bulls tend to have very long cycles (20+ yrs).

Should you buy gold based on high government debt? No. Should it be considered as part of a commodity-weighted portfolio, and as a hedge against the declining value of the USD? Absolutely.

]]> By: Real Estate & Gold or…. Not? « Being just me http://www.fundmasteryblog.com/2007/09/14/the-paradox-of-gold/#comment-190 Real Estate & Gold or…. Not? « Being just me Tue, 18 Sep 2007 03:33:39 +0000 http://www.fundmasteryblog.com/2007/09/14/the-paradox-of-gold/#comment-190 [...] Economics, Investment — Sankar Khrishnamurthy @ 3:33 am Go ahead and follow the link to The Paradox of Gold by Kurt Brower.  I used to think of gold as a good investment vehicle.  Whatever happens, I was [...] […] Economics, Investment — Sankar Khrishnamurthy @ 3:33 am Go ahead and follow the link to The Paradox of Gold by Kurt Brower.  I used to think of gold as a good investment vehicle.  Whatever happens, I was […]

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