.......Protect Your Financial Future With Gold???
Protect your financial future with gold??? I love gold (I'm a real gold bug, unlike the small army of con artists and nitwits in the sector), it's beautiful, I have a modest gold/silver/platinum coin collection (less than 1% of my net worth), but, is it the safe haven panacea that many gold writers make it out to be? HELL NO! If it was then it wouldn't be marginally above the 1980 cycle high at $875ish TWENTY EIGHT YEARS LATER. That's not protection that's a multi year NIGHTMARE.
Bought near it's multi year Secular Bull Market uptrend line since April 2001, currently at $500ish (see chart two at http://www.joefrocks.com/GoldStockCharts.html), gold has been great, and, has returned about 30%+/year on average.
Gold needs to be timed properly, like any other investment/trade. There's NOTHING magical about gold in terms of being a safe haven panacea. Obviously most of my readers already know this. I'm countering all the Mickey Mouse BS in the sector.
The real safe haven is US Dollar denominated assets such as T Bills and T Bonds, which have rallied dramatically in recent months, see http://finance.yahoo.com/q/bc?s=%5ETNX&t=1y&l=off&z=m&q=c&c= (Yield plunged, which means that the bond's price has rallied substantially).
A big part of the reason why China, Japan, Brazil, etc don't mind owning a huge amount of US T Bonds and T Bills is because they are a safe haven, and, they pay interest, which gold obviously doesn't do.
I don't know about India, but, China's economy/financial system/lending practices are more screwed up than the US, as are most if not all other major powers. Japan was supposed to pass the US in the 1980s, but, Japan's economy/stock market went bust in 1989, and, 19 years later the Nikkei is about 1/3 of it's 1989 level.
.......http://www.JoeFROCKS.com/ .
Bought near it's multi year Secular Bull Market uptrend line since April 2001, currently at $500ish (see chart two at http://www.joefrocks.com/GoldStockCharts.html), gold has been great, and, has returned about 30%+/year on average.
Gold needs to be timed properly, like any other investment/trade. There's NOTHING magical about gold in terms of being a safe haven panacea. Obviously most of my readers already know this. I'm countering all the Mickey Mouse BS in the sector.
The real safe haven is US Dollar denominated assets such as T Bills and T Bonds, which have rallied dramatically in recent months, see http://finance.yahoo.com/q/bc?s=%5ETNX&t=1y&l=off&z=m&q=c&c= (Yield plunged, which means that the bond's price has rallied substantially).
A big part of the reason why China, Japan, Brazil, etc don't mind owning a huge amount of US T Bonds and T Bills is because they are a safe haven, and, they pay interest, which gold obviously doesn't do.
I don't know about India, but, China's economy/financial system/lending practices are more screwed up than the US, as are most if not all other major powers. Japan was supposed to pass the US in the 1980s, but, Japan's economy/stock market went bust in 1989, and, 19 years later the Nikkei is about 1/3 of it's 1989 level.
.......http://www.JoeFROCKS.com/ .
posted by Joe Ferrazzano at
9:56 AM
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