Captain Shrek said:
Renegen said:
What I find strange Captain Shrek is your complete 180 in these two sentences. You say that all economists agree it is a safe bet but then you also say that when adjusted to inflation, gold is at an all time high and therefore risky investment. Where's your position?
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If something inflates faster than currency that means its a good investment! Whats so hard to get???
Oh right. I now understand your position better. You are completely clueless about investing. For your information, the reason why anyone is investing in gold is because it is seen as a "safe" asset. People are dumping the US dollar (and by definition Treasuries) to buy the gold. Gold may become the next "risk free" asset, which is very different from buying stocks that can go up 10-20% a year. And commesurate with being a "risk free" asset, the returns for gold should only marginally be better than the inflation rate, comparable to Treasuries minus the currency risk.
In other words if you can put the puzzle together, gold could be due to a big correction. Just a friendly warning bud, you are the sucker in this one, just like technology stocks and houses.