Thursday, December 23, 2010

Gold Has Been A Terrible Investment?

How many of you hear these financial advisor morons get on CNBC and discuss what a lousy investment has been over the years?  What?  Oh, it doesn't pay interest?  Junk bonds paid tremendous interest all thru the 1980's and then the market crashed hard.  99% of the world lost substantially more in capital loss than they earned from the coupon payments.  If you chart U.S. Treasury Bills since 1991, adjusted for inflation, that interest-bearing investment is actually negative.  How many your genius registered reps have you sitting in T-Bills?  Well, here's how this "lousy" investment has done since 1970 - I borrowed this chart from Casey's Reasearch, the edit in red is mine:

The next time your ignorant, idiotic "financial advisor" calls you up to tell you what a lousy investment gold is and what a great opportunity is being presented in the muni bond and mortgage-backed bond market, YOU are the idiot if you don't hang up the phone and find an advisor who knows the facts/truth.

If I find more inspiring material to post I will do so, otherwise I'm off to do some back-country sno-cat skiing tomorrow.  Have a great Christmas/Boxing Day/Holiday weekend!   BUON NATALE A TUTTI!


  1. HERE! HERE! Dave.

    And yes I am " Buying this Fucking Dip " :)


  2. Thanks for the chart.

    I have already booted my advisors after 2008 crash.

    If anyone calls and when I tell them about PM's, they never call again. ;)

    Do you think Gold/Silver would be taken down to 1345 level during next week or first 2 weeks of new year ?

    From India

  3. LOL Bill. Merry X-mas!

    India, no idea but if "they" do, buy more. Actually India/Asia, based on import premiums, are actively buying right now.

  4. Prechter needs to open an E-Wave Tent City as most of his devotees will be in need of such a place.

  5. My question is: Is the absolute inability of 90% of everyone I know to even consider buying gold and silver a genetic abnormality? Are they afraid of the ghost of president Roosevelt? They're NOT stupid! I have never heard a GOOD reason! They just refuse, even after NINE years of this fantastic Bull market! When gold hits $3000.00 they STILL won't buy! OREMUS!

  6. 90% of the population is either ignorant or morons...

  7. Part 2 of silver manipulation, enjoy!

  8. Merry Christmas Dave! Best wishes for 2011 as well.

  9. More like 98 Dave.

    The late Morton Shulman in Toronto, himself a great investor, had an expression for this when he said "dont try and talk sense to people in love with their dreams."He was talking about housesin Toronto in the 70s, which are still about a quintuple or ten times higher.He would have a lot of gold today and did then.
    What you do is save your breath, save yourself, and then help the less fortunate when their time comes. As it is now doing.

  10. My daddy always told me money don't grow on trees. However, holding physical Gold/Silver for the past 7 years is the closest thing to a money tree I have ever been associated with.

    Joe M.

  11. For me, Gold is one of the best investment these days. Go for gold investment and gold account these days then.Not Later. Today is the best day.