Id rather go down to the casino and put my life savings down on black, the expected return is likely higher.
@Sweep, I know you’re a closet accountant that like to troll this thread. Yes, you are correct that there was a pop in August and Sept 11’, I misspoke. But let’s be clear about this Gold was at $1,653 on Aug. 4, 2011…Gold spot is now ~$1,580. When gold was going up gold bugs like you were screaming about $2,000 and $3,000 gold.
I’m not buying gold if he Euro fails! I’m buying UK and German bank bonds at a deep discount!
And all this talk, how much gold do you have in your portfolio??
Yes, you misspoke. You generally misrepresent people that actually have valid points against investing in gold. It’s not your disdain for the metal that bothers me. It’s your complete lack of understanding or willingness to understand the factors that drive gold prices.
If you came in here and said, “the gold bubble is popping because inflation isn’t going to happen in the next 10 years/USD is going up/idiots no longer run governments/central planning works/etc.” we could have discussed why I believe you’re on the wrong side of the investment. Instead you named very specific events and times and you were 100% wrong both about the factor (timing of uncertainty) and the outcome (gold went up).
Now, you want to know where the gold bugs have gone? As I stated above, according to the data I’ve seen they haven’t gone anywhere. Flows are still even-to-positive in gold ETFs YTD and Comex volume and open interest has been strong. As they say in the gold market, the longs appear to be in strong hands. Has enthusiasm waned recently? Sure. But the stats say people are not fleeing the market.
When you talk about gold bugs - and I’m not sure you actually know what that term means - you’re speaking about people that have owned gold for years. You really think these pullbacks, and they happen frequently, bother them? Look at a 10 year chart. The last four months barely register. Just an opportunity to add to their stack.
My own portfolio? I’ve stated my allocation in various threads multiple times over the last few years. I’m sure others can back me up or search for yourself. I got into the gold and silver market a little over three years ago and have maintained an allocation to a combination of the physical metals through PSLV and PHYS and various miners to the tune of 45-65% of my total portfolio.
And, btw, you want to go out and buy UK and German bonds if the EU breaks up? Great, more power to you. That has nothing to do with you saying it would be horrible for gold, and again being amazingly wrong. I do advise you to seek other assets though. I don’t think gold’s for you.
y in the world are you buying euro bonds? just curious? where is the upside here? how much is the upside?
potential bailout
@Frank, yes; I made a good amount of money when everyone was afraid of a Euro collapse and I bought bank bonds on the cheap. If the Euro collapsed, Germany and the UK would bailout there banks and you can buy their bonds on the cheap.
@Sweep, I’ll eat humble pie and admit that I was wrong about gold not going up directly after debt ceiling debacle. I already admitted as much, you don’t have to pile it on. My issue is with everyone that was speaking about $2,000 gold and above. Also, do you actually have gold in your portfolio and what percentage?
Zero % in my portfolio. I work in India so my fortunes are already strongly related to the price of gold. Don’t need more exposure.