[quote]Headhunter wrote:
Zap Branigan wrote:
LIFTICVSMAXIMVS wrote:
Zap Branigan wrote:
Someone is drawing a false relationship for you to sell you gold.
The relationship is only historical and not theoretical.
Like anything else the values of gold and oil compared against each other will fluctuate. The point being it fluctuates up and down between certain values (historically) and doesn’t just lose value the way paper has.
Who keeps their money in paper? Hoarding gold is almost as bad an idea as hoarding paper money. Invest in something!!!
How is buying gold mining shares different from buying Coca-cola stock? Both produce something buyers want. Its that simple.
Holding gold as a hedge against inflation is a traditional way of taking your wealth out of harm’s way. No one can print up more and devalue your wealth, whereas mine output is already factored into the gold price.
Seriously, Zap, you’re a sharp guy (I really mean that) but you have an obsessive dislike of gold. Its simply an alternative form of money, like wheat or Swiss Francs. Owning either is fine, as is owning gold.
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Buying mining stocks is fine. Buying gold is as risky as buying any other commodities.
The time to buy gold was years ago. Now the Fed is concerned about inflation and will take steps to limit it. I suspect we are going to see gold fall even more.