The Golden Truth: Gold Has Been A Terrible Investment?

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!

12 comments:

BillThursday, 23 December, 2010
HERE! HERE! Dave.

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

Bill
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AnonymousThursday, 23 December, 2010
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
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Dave in DenverThursday, 23 December, 2010
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.
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Joe KernanThursday, 23 December, 2010
Prechter needs to open an E-Wave Tent City as most of his devotees will be in need of such a place.
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Dave in DenverThursday, 23 December, 2010
ROFLMAO - great call JK!
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AnonymousThursday, 23 December, 2010
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!
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Dave in DenverThursday, 23 December, 2010
90% of the population is either ignorant or morons...
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JohnFriday, 24 December, 2010
Part 2 of silver manipulation, enjoy!

http://www.youtube.com/watch?v=uPg4qTNTP-E
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EconomicDisconnectFriday, 24 December, 2010
Merry Christmas Dave! Best wishes for 2011 as well.
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AnonymousSaturday, 25 December, 2010
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.
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JoeSunday, 26 December, 2010
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.
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karatbars businessTuesday, 03 September, 2013
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.
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.