Posted on 12/07/2011 5:21:08 PM PST by SeekAndFind
Manage your own account and thereby you’re also managing your own risks (including inflation). But the happy ending is the broker made good money while the money stash eroded away.
Where’s a good site with a plot of the price of gold in dollars over time?
Gold hasn’t kept up with inflation, either. If it did, it would be over $2,200!
If I had a lot of money, I wouldn’t put it all in anything, gold included.
What I can’t figure is that everybody who says gold is going way up wants to sell you some. If they think it is going up, why don’t they want to keep it?
“What I can’t figure is that everybody who says gold is going way up wants to sell you some. If they think it is going up, why don’t they want to keep it?”
Couldn’t you say that about any commodity?
What do you think has been better at keeping up with inflation?
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I’m not being a smarty-pants when I say this: cottage cheese.
I literally lived on cottage cheese when I was at university. It cost 36 cents per pound then (1976). The price today is nearly $1.00. And tomatoes? OY!
If you’re buying computers, you get more for your money every day despite inflation.
If you saved money in gold to buy computers later, well, you’re golden!
I like information I found at the following website Measuring Worth.
If you compare the market price of gold per ounce with the average weekly production worker's wage since 1942, you will find that gold has done quite nicely over a 70-year horizon. Of course, there were periods of time when the price was obviously manipulated.
“What I can’t figure is that everybody who says gold is going way up wants to sell you some.”
Investors make money by buying low & selling high; the sellers bought low, and have to sell high to make money. Basically, they need someone who thinks ass-backwards to dump their holdings on.
I’ve posted on FR a grid showing my home value from 2004 to today in terms of dollars, ounces of gold, and ounces of silver
the loss is astonishing
if I had bought gold instead of my home, today I would have $1.6m worth of gold instead of a property worth $175k (down from $400k)
“I’m not being a smarty-pants when I say this: cottage cheese.
I literally lived on cottage cheese when I was at university. It cost 36 cents per pound then (1976). The price today is nearly $1.00”
Really? You think cottage cheese is an investment alternative to gold?
Despite this hilarious comparison, let’s look at your choice:
Cottage Cheese in 1976: $.36/lb
Cottage Cheese in 1976: $1.00/lb
Increased about 3x
Gold in 1976: $125/oz
Gold in 2011: $1744/oz
Increased almost 14x
Cottage Cheese
What I can’t figure is that everybody who says gold is going way up wants to sell you some. If they think it is going up, why don’t they want to keep it?
Smirk erased.
You can’t eat gold, sweetie.
Yup. And she paid taxes on the money she lost!
Here's what we have to look forward to... This is a 50,000,000 mark note printed in 1923. At the time, it wouldn't have purchased a loaf of bread. It is one of the prime drivers that allowed a man like Hitler to come to power.
Bogus example. Nordstrom does not tell you to buy shoes because they will be much more valuable in the future and thus will preserve your wealth. The message that I hear repeatedly is “Gold will become much more valuable and paper money will become worthless. Therefore, give me your paper money and take my gold.”
If those who own gold believed that, they would not be sellers. They are full of something that does not glitter.
Not really. Most owners of commodities will keep their holdings if they think the price is due to rapidly increase. That includes both farmers with corn in a bin and those long futures contracts.
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