Originally Posted by chabe
Gold is a formerly precious metal with little real value underlying it's high price. We'll never return to the gold standard and frankly I'd rather have a barrel of sweet crude oil in my cupboard than an ounce of Gold. And also a while back when the entire financial system almost ground to a halt - why didn't gold go to $4000 an ounce?, if its such a safe haven. Silver however has economic uses underpinning its price and there is becoming more demand for the products that use silver. With both products however - beware of the widely differing and unreliable data about the amounts of both metals in and out of the ground vs demand. One last thing - when (not if) the bubble bursts - make sure you are standing REALLY close to the exit door.
So frankly, you prefer something that has a market value of $150, over something that has a market value of $1400... smart.... your analogies aren't very good..what does standing REALLY close to the exit door mean.. Does it mean if you're invested in a Gold tracking ETF, that its very liquid? Or if you hold gold bullion that you can readily liquidate them incurring large transaction costs?
Originally Posted by asdf
"Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."
nice... apart from ancient kings, indians and dragons hoarding gold, uses of gold are primarily in electronics being a good conductor