Gold is not an investment, it is a speculation vehicle

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2 thoughts on “Gold is not an investment, it is a speculation vehicle

  1. Gold is a mineral not a rock.
    Thinks 20 years is a long term investment, then plays the last decade as short term trend. I don’t even ???
    Picks the 80’s as point of reference. LOL no, L2 HuntBrothers and central banks being net sellers globaly. if we picking goal post I like to sumbit the last 100 years. so gold was what? $20 an ounce. maybe the persons real problem is he can’t sell gold and make margin cause he don’t have any.

  2. 1/2 long term = short term. Why not? 🙂 No matter what the time frame is, 20 years or 100 years, we do need to consider inflation. See http://seekingalpha.com/article/383451-gold-and-silver-way-off-inflation-adjusted-highs for an example. Looking at the chart on that page I would still come to the same conclusion as I did with real estate: the gains, after considering inflation, are not as large as they seem.

    In a nutshell remember this: there are little lies, big lies, and then statistics. If one truly believes gold is a good investment, that person should put their money into gold. Problem is, acting on “buy” advice from someone who holds the asset in question is bad practice.

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