Just compare the 10 year returns of great companies to the price of gold in a 10 year period. PCLN, AAPL, DECK, PCP, COH, CTSH, GRMN, SSL, the list goes on and on...
Great companies simply BLOW away gold over the long run. Don't give me that "but you end up with worthless dollars" nonsense either. You know stocks outperform gold.
Get a grip-- gold does not go up or down - the currencies do with respect to Gold any given multitude of reasons. Inflation/devaluation of the dollar makes Gold appear more valuable. only it did not move at all.
In Germany right after the war, their currency was worthless and any piece of Gold would get a bushel barrel of it. Yet at the same time in America gold barely moved.
Well shoot, if you're the best timer/trade then are far better than gold or what you mentioned.
80's & 90's: stocks & bonds
I think the bull market is going to continue. Just wait until QE2 !
Excuse me my friend but CTSH is up 1076% since Jan. 3, 2000. The list goes on and on great companies have blown away all other investments. In general, I will pick great stocks when the market is selling them at a discount to just blindly buying a gold etf.
yes, oh great one, who has lived 100s of years and knows all cycles. Share more of your great wisdom with us.
Anyone can pick any stats they choose to prove any point they want. There are always the 100 baggers that blow everything away. There are plenty of junior miners that are 50 baggers also. Choose the stats you want to prove what you want.
Gold 252 in 2000.
Gold 1160 in 2010.
DOW 12000 in 2000
DOW 10500 in 2010
And there is always that nasty reality of inflation.
So DOW absolute numbers don't show the true bear market that has occurred.
Beware of the rear view mirror.
Remember Weimar and Zimbabwe.
Remember the fiat cycle.
But you are invested in your view of reality.
You are defending it, rather than being open...
So, unfortunately, you will only see gold's rise after it has happened.
Just wait one year and then look back.
Even Marc Faber knows that stocks are ultimately the place to beat inflation. I think we can agree that inflation is down the road, the key is how to beat inflation. I think companies(especially emerging and frontier markets)will be the place to hide. If you are going to assume that gold is the place to be, then at least go with some miners when they are dirt cheap. I personally think there are many sectors other than precious metals to beat inflation.
Thank you my son,
The great one