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View Diary: A word on investing in gold...Don't. (54 comments)

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  •  Some things never change-or so it seems to me. (13+ / 0-)

    Your diary gave me a flashback memory.  Mid to late 70s, buying gold (and silver) suddenly was "the" thing.  Whether for investment (get rich quick!) or as a resource to have on hand when the dollar became worthless.  

    Was back in my "back to nature-mother earth" days.  Peers seriously discussing the need to have certain things/skills on hand for bartering & pondering whether all the talk about buying gold/silver should be part of the mix...

    Some that could, did buy gold.  I bought worms & seed & adopted a wild horse from the BLM....

    Still not sure who made the "right" investment, but I like to think that my kinda gold was just as shiny....

    Old hippies, early eco warriors, mother earthers.  Heh, today would probably be called survivalists or something.

    Funny, I had forgotten all that '70s "buy gold & stock up stuff" until your diary.

    •  A guy I knew in the 80's sold everything (7+ / 0-)

      he owned, including his house and store, to buy gold  convinced it would make him a fortune because he was a "smart investor"...last I saw of him, he was working driving a limo for big Atlantic City gamblers...not his own limo, either...

      FEMINISM encourages women to leave their husbands, kill their children, practice witchcraft, destroy capitalism and become lesbians...Pat Robertson, failed lawyer, worth over $100 million.

      by old mark on Sun Feb 23, 2014 at 04:51:01 AM PST

      [ Parent ]

      •  If he sold EVERYTHING... (13+ / 0-)

            ...then that wasn't very smart. Rule One of investing is to have a diversified portfolio.

            Gold is more a store of value than an investment. If we get Bankopalypse II, the value of gold relative to other instruments will soar -- as will the value of, say, farmland. (As long as it's physical gold and not a "note" saying you own some supposedly locked in a faraway vault.)

           It's a perfectly sound component of any portfolio. If it goes down in value, that usually means the economy is sound and stable, and your other investments should be performing well. Just find a reputable dealer and stay away from Beck's hucksters.


        "Le ciel est bleu, l'enfer est rouge."

        by Buzzer on Sun Feb 23, 2014 at 05:07:37 AM PST

        [ Parent ]

        •  Diversifying isn't magic. (0+ / 0-)

          If you diversify into a more risky asset, your portfolio isn't magically more sound.

          For some people, the volatility of gold is an acceptable risk. For others it isn't. There are plenty of ways to diversify and reduce risk without including precious metals in your portfolio.

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