I guess that would be true. Against the falling dollar. I bought 25 ounces of gold for $300 an ounce in 2001, right after 9/11. One of my better investments -- but I don't intend to sell it.
No, gold is not a good investment, and I don't invest based upon what talk radio hosts tell me.
Gold has no actual use, not compared to other commodities that are actually useful.
But, if you think that if there is going to be Armageddon and somehow your shiny yellow stuff will be worth something, go ahead, collect it.
You did very well. Gold hasn't been much lower than that.
so far I have hear of gold being mixed with tungsten, with is an expense metal itself, and this had to do with gold from china.
I don't buy any gold or silver from china, and stay with the same seller I trust,...I never buy from ebay, or something of that nature.
to add I have my own scale, and I weight what I buy, and check for correct weight.
my personal note to you: never let yourself be boxed in by only having cash/ fiat currency, always have a backup, SOME gold, silver, or products which hold value for resell, liquor, ammo, storable food are examples.
No, gold is not a good investment, and I don't invest based upon what talk radio hosts tell me.
Thing is though what most people here seem to not realize. Gold HAS ONLY EVER GONE UP!!!! unbelievable, sure you get major spikes up in value that are MONEY MONEY MONEY makers:shock: and then it drops back down BUT it NEVER ever fell back below previous valuations.
check a long term gold chart and it only goes up in value. Sure you have swings up and down but the long term trend is always up!
Whatever i see the hive mind thinking that the boobtube has ingrained. It is rather scary actually.
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If you see the price of gold on a chart adjusted for inflation you would change your mind. I suggest you look at a chart from the late 70's early 80's and compare to the late 90's early 20's and compare both to now. I would suggest a bar chart or candlestick chart.
LMAO like this chart? it is interactive and pretty informative PS it is adjusted for inflation as well.
Gold and Silver Prices - 100 Year Historical Chart | MacroTrends
Here is a nice chart that is not adjusted for inflation.from 1833 to 1999
London Fix Historical gold - result
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London Fix Historical gold - result then a 1995 to current clearly the trend is UP UP AND AWAY!!
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Private poll
Do you own Gold as a hedge against a falling dollar?
right buying at 250 an ounce back in the 2000, and selling now at over 1300 is a terrible idea.
or heck selling at near the high of 1900 makes no sense at all.
lol. It's astounding how many people believe investing is about market timing and 'buying low, selling high'. Sucker born every minute, I suppose. :lol:
It is. The buying low selling high bit. That's how you make money in the markets. As a speculator anyhow. You just don't need to do it in any particular order. The other way to make money is to skim the transactions as the broker, or bookie if you like mob terminology.
:lol:
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There's mountains of research that shows that trying to time the market by buying/selling in sync with the natural market fluctuations doesn't work. Success in timing the market is statistically equivalent to (or even worse than) random chance. You are not Warren Buffet. You are not Peter Lynch. With near certainty you would do better in the long run to buy and hold.
That's not even controversial in the personal finance world these days. Investing is about buying an asset and sitting on it long term. It's not about picking the hot stock, it's about asset allocation. It's about ignoring the up/down fluctuations. That's just noise. You make money by taking advantage of the long term trend that emerges in spite of the noise. Those that try to time the noise almost always do worse in the long run. And that's even if you opt for professional management. The costs of active management almost always negate the gains compared to passive indexing.
Private poll
Do you own Gold as a hedge against a falling dollar?
I don't keep physical gold. Its pointless to have for emergency purpose unless that emergency in a foreign country and the emergency is personal. The other products you listed are much better to have, also NON computerized machine tools and the like and knowledge of machining welding metal working and the like. Good working knowledge of fractioning and distilling chemicals is also valuable. Farming and that skillset. If its for investing or hedging I use ETF's and the exchanges or brokerage firms.
That is part of it yes asset allocation. Notice I didn't say timing the market I said buy low sell high.
There is no specific order you do that in. There several ways to buy and sell, market timing just one of those, dollar cost averaging is another.
Buying and holding for long term is a good play IF you get a good deal. Buying at low points in market trends amplifies the effect over the long term. Buying at high points lessens your gains over the long term. Selling off in high trends locks in profits. You don't need to time the market you just need to know if you are on the high side or low side very tops or bottoms matter little.
I trade for part of my income and that is part of my multi legged income strategy along with running a logistics business, real estate investments, and other investments. Research also shows there are calendar time to buy and sell various futures and stocks. Research also shows most traders are out of the market in a year. That same research show the reason they are out within a year is either lack of discipline, not enough resource to start with or lack of knowledge of the market they are attempting to trade. Its a matter of knowing the fields you are trading and or investing in if you are trading or investing. Investing simply denotes a longer term strategy.
A good strategy for accumulating wealth will encompass long to medium term investing and short term trading in a mixture and exposure appropriate to your goals and risk tolerance.
There is also NO one way that is successful for all people, everyone is different and has different risk tolerances, accumulated assets, cash holdings ect.. What works for me may not work necessarily with you.
You are right I am NOT Warren Buffet and most certainly not as brilliant as Peter Lynch I only am right 33% of the time on which way the market is going to go, I have however very impressive 5% monthly gains which equates to 60% yearly gains. How is it I do that with such a crappy prognostication rate? Discipline. That's it. Timing the market perfectly is pretty much impossible, timing it some of the time is inevitable a matter of statistics. Taking advantage of market movement is VERY possible and to be blunt probable. Don't catch the waves, catch the tide.
That's what I was talking about. You responded to me remember.
Dollar cost averaging is a strategy for getting a big lump sum into an investment without risking a sudden loss to short term volatility. It really has nothing to do with market timing vs buy and hold.
:lol: This is timing the market and statistically it's a loser's game. If you have funds to invest, start investing it now and hold until you retire. Waiting till you think the market is at a low point or selling it before then to "lock in profit" is a rookie mistake. It's exactly the kind of unwise investing behavior I'm talking about.
Day trading isn't investing as far as I'm concerned. What you're doing is akin to trying to beat the house at a Casino. Statistically, you are not going to come out ahead. It's not about "lack of discipline". :roll:
Right. If your goal is to earn as much as possible over your lifetime, then short term trading is a bad idea. It's a matter of simple statistics. If your goal is to likely earn less money over the course of your lifetime, then short term trading is for you. Another good stategy for this goal is playing roulette at your local Casino. :lol:
:roll: Of course. This is where asset allocation and rebalancing your portfolio as you age comes in.
Hahaha. 60% annual returns! You're right, your'e not Warren Buffet or Peter Lynch - you're way, WAY better than they ever were! lol.
You're delusional if you think that's the kind of return you maintain. :lamo
Sucker born every minute....
Dollar cost averaging is a strategy for getting a big lump sum into an investment without risking a sudden loss to short term volatility. It really has nothing to do with market timing vs buy and hold.
Definition of 'Dollar-Cost Averaging - DCA'
The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares are bought when prices are high.
Also referred to as a "constant dollar plan."
Investopedia explains 'Dollar-Cost Averaging - DCA'
Eventually, the average cost per share of the security will become smaller and smaller. Dollar-cost averaging lessens the risk of investing a large amount in a single investment at the wrong time.
For example, you decide to purchase $100 worth of XYZ each month for three months. In January, XYZ is worth $33, so you buy three shares. In February, XYZ is worth $25, so you buy four additional shares. Finally, in March, XYZ is worth $20, so you buy five shares. In total, you purchased 12 shares for an average price of approximately $25 each.