I;ve been wondering how long it would take the DN to address this issue. Glenn
Beck and his never ending crusade to sell gold has predicting the demise of the
dollar now for at least 6 years. Who can't forget his famous demonstration
where he used a lift to show a chart of how high he thought gold prices were
going to rise because of the imminent collapse in the value of the dollar....
that was 6 years ago.The fact is the dollar has hovered in its
trading range now +/- 5 percent for a long time now. Its value just isn't
fluctuating that much because currency values are relative to each other.
Glenn is absolutely right in that keeping your money in cash is a bad answer...
inflation will eat away at it. And he is correct that in a properly diversified
portfolio, metals can play a part.If you like investing in gold...go
for it. It will go up, like all things. But if you think someday we will be
living in a gold transacted economy, those days are long gone. No one
"Needs" gold... it is a luxury metal.
I doubt that Paulsen, Soros, and others invest in gold or anything else just
because they are prophets of high finance. It is likely that they want to drive
the market, wait for the masses to jump in, then cash out, taking their profits
with them. This is an old pattern.
If you look at the trading patterns of gold you will find that it is being
manipulated. The last thing the Fed and big money banks want is for gold to be
a safe haven asset where people store their wealth. In order to keep interest
rates down the fed has no choice but to keep printing money at the rate they are
currently at. Who will buy US treasuries if it isn't the fed? If interest
rates rise, our government has to service that debt which will create further
deficit spending to cover the cost of interest until all confidence in the
dollar is lost globally. Those that cant see this train wreck coming are hiding
their heads in the sand. Hard assets are the only things that will protect you
and gold is a prime example of a hard asset. Paper has no value and maybe we
are beyond going back to the gold standard but it isn't by common sense
that we have arrived at that point but stupidity.
I never trusted gold, for the long term. I am much better off, because of it.
Shrug... I remember gold prices in the 80's (after the last real estate
market crash). It sky rocketed and my parents foolishly bought. Then,
surprise, surprise it tanked. Wasn't until this last wild ride that my mom
could get rid of the stuff and not lose money. "Those who
cannot remember the past are condemned to repeat it"