Oh yeah. Way better. I'm still kicking myself for selling the shares I got at $25 for $27.87. I thought it was only a Bernacke bounce so I sold it when he stopped talking. I looked like a winner when it went back down but then the FT news hit and the market jumped 350 pts in an hour and I ended the day looking like a fool.
that's is what i think of gold too just exactly like how you explained , but..... let me explain long when gold was at oh about $600 ,i even go as far as asking around ask jewelry stores for gold bars but nobody carry any,because i really want to own some physical gold, husband put me down (you cant eat gold) i kept an eye on both gold and oil , but i know oil you will always need etc... and then to my amazement gold took off to $800 and then start to climb toward $1000, and by then i think wow, i've realized dummy like me made the wrong bet the street/market is alot smarter they picked gold and my logic is wrong ... so the rest is history gold = $1950, maybe they hedge because of the trouble in europe, maybe they bought it because of fed printing money making our dollar worthless (hyperinflation), dont count out hyperinflation because i think fed really does not know what they're doing (as in housing) , or they do but dont care , why NOT steal when you CAN (disgusting) , i think gold only go down when fed start upping interest rate , but look at japan , 10yrs rate is 1% , we are really becoming japan, well anyway i wish i own some gold (i mean really gold coin/and bars) , my mom own some when i was young , what do you have to lose, if it cut in half you can alway look at the pretty bar/coin lol , they are really pretty and shiny
actually you can use gold to make purchases. peter schiff partnered with visa or mastercard and now you can make purchases with gold. you have a balance of gold and when you make purchases you literally pay with gold.
google the dow-gold ratio & keep in mind that gov debt is probably going to get monetized..which means a lot of inflation. all it takes is for china and japan to stop buying treasuries. china has already sold a few hundred million - which is nothing but maybe an early sign
i agree that gold is gonna drop as it did in 2008, and even when it bottoms i only see myself committing 10% of my portfolio