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Why do ppl buy gold as an investment tool?

November 15, 2010 by  
Filed under Silver Investment FAQ

It’s hasn’t even kept up with inflation for the last 22 or so years since the gold /silver run up in the very early 80’s

Comments

11 Responses to “Why do ppl buy gold as an investment tool?”
  1. no n says:

    ya, but when it does go up …. look out

  2. Robin R says:

    Gold will always be gold. Stocks, currency, bonds, etc. may not hold value one day. Gold is one of the safest investments, not risky.

  3. [insert something clever here] says:

    because their weird

  4. STEPHEN J says:

    It actually has been a good hedge against inflation. Gold is considered a safe investment bc it’s a hard asset. The dollar is only valuable bc everyone in America says it is. For the long-term gold hasn’t been very good, but it can make some money in the short term, I wouldn’t buy it right now, though, since I think it’s been going down. I’d wait.

  5. Yardbird says:

    Precious metals like Gold and silver can do fabulous when inflation kicks in and folks are afraid of a recession. Vanguard’s precious metals fund VGPMX has returned 31.5% this year, better than any other sector. Serious bears love gold. Buying gold is a bet that the economy will tank.

  6. bdfaulkner says:

    You know what, im kicking myself for not jumping on it.

  7. NC says:

    Because there are “investment advisors” who aggressively push it…

  8. General Custer says:

    gold is risky
    it earns no interest
    it was $800 many years ago and has yet to get back up
    gold can be stolen so it must be srored and insured (cost)
    there are a lot of con men who sell fake gold, including coins, bogus depository reciepts

    In theory gold will keep up with inflation because no government can make it

    a government can however confiscate it or outlaw ownership (at one time it was illegal to own gold in the US except as jewelry)

  9. vegas_iwish says:

    I twill now. Ignore that bubble in 1979 which twisted Gold & Silver patterns. India & China are buying heavily. IAU the etf a good play

  10. Frank Castle says:

    For exactly the same reason people smoke and eat at McDonald’s despite the fact you will be dead in both cases (Lung Cancer and Heart Attack)

  11. forex says:

    gold isn’t supposed to keep up with inflation – the only reason that it’s even tied to USA inflation rates is b/c it was originally priced in US$ for years and years (same thing with oil)…

    it’s a commodity just like any other commodity – the reason that traders and fund managers will diversify into it is b/c it’s often a ‘contrarian’ asset, which means that when times are bad and other stuff is down that gold might be up…

    contrarian investments work oftentimes b/c of ‘risk-aversion’ where people become less inclined to risky assets or assets that become risky due to certain conditions…

    if you were watching gold prices then you’d know that gold spiked upward earlier this year (along with other metals) but even when gold was trading in the 350 to 450 range for the longest time, it wasn’t a bad investment, it was a ‘hold-wait-and-see’ play that eventually worked out for people who were buying it

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