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SPDR Gold Shares Message Board

  • kyduckman kyduckman Sep 9, 2008 11:43 PM Flag

    Sorry GLD NAYSAYERS !!!!


    With inflation running so high in the early '80s, interest rates on even "boring" Treasury bonds were more than interest rates on T bonds are only around 4%. Right now, inflation is --conservatively--running at 5%. And Ben Bernanke is flat out telling us there's more inflation to come...he said inflation seems likely to move temporarily higher in the near term---hmmm Yet somehow, T bonds pay just 4%. When you add it up you're actually losing a percent a year by holding treasuries now. Most of the doesn't do you much good in my portfolio. Since gold pays no interest institutional investors choose to park their money in high-yield bonds, where the interest more than covers the inflation rate--But now, putting your money in bonds doesn't even cover the rate of inflation. Sure makes gold look attractive...I'm averaging down...Won't go over 10% of my portfolio though...if you do--you are gambling and not well versed in assett allocation...after all--asset alocation is the most important investment decision you will make!!! Good Luck to All !!!!

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