Comments on: The Great Gilded Bubble: Gold Investing http://weakonomics.com/2009/03/02/the-great-gilded-bubble-gold-investing/ Everything That's Wrong With You And Your Money Wed, 10 Mar 2010 02:48:29 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Weakonomics Web Junction: Restaurant Pwns You | Weakonomi¢s http://weakonomics.com/2009/03/02/the-great-gilded-bubble-gold-investing/comment-page-1/#comment-1688 Weakonomics Web Junction: Restaurant Pwns You | Weakonomi¢s Fri, 13 Mar 2009 13:49:56 +0000 http://weakonomics.com/?p=1175#comment-1688 [...] Quick shout-out to the Festival of Frugality which hosted my post on the Great Gilded Bubble [...] [...] Quick shout-out to the Festival of Frugality which hosted my post on the Great Gilded Bubble [...]

]]> By: the weakonomist http://weakonomics.com/2009/03/02/the-great-gilded-bubble-gold-investing/comment-page-1/#comment-1638 the weakonomist Mon, 02 Mar 2009 23:08:28 +0000 http://weakonomics.com/?p=1175#comment-1638 Chris, I appreciate your candidness. If gold was still used as a means of currency, then perhaps I would consider it "sound money". But we don't use it for transactions and don't print currency with it. Without those factors in our economy, gold is nothing more than a shiny metal. Thanks for sharing your thoughts, I always appreciate different opinions. Chris, I appreciate your candidness. If gold was still used as a means of currency, then perhaps I would consider it “sound money”. But we don’t use it for transactions and don’t print currency with it. Without those factors in our economy, gold is nothing more than a shiny metal.

Thanks for sharing your thoughts, I always appreciate different opinions.

]]> By: Chris | Martial Development http://weakonomics.com/2009/03/02/the-great-gilded-bubble-gold-investing/comment-page-1/#comment-1637 Chris | Martial Development Mon, 02 Mar 2009 22:06:59 +0000 http://weakonomics.com/?p=1175#comment-1637 Respectfully, any analysis that fails to consider gold's role as "sound money" is incomplete. Whether or not you believe it serves that role, many investors do. Respectfully, any analysis that fails to consider gold’s role as “sound money” is incomplete. Whether or not you believe it serves that role, many investors do.

]]> By: The Personal Finance Playbook http://weakonomics.com/2009/03/02/the-great-gilded-bubble-gold-investing/comment-page-1/#comment-1636 The Personal Finance Playbook Mon, 02 Mar 2009 16:50:17 +0000 http://weakonomics.com/?p=1175#comment-1636 I don't think your average investor needs to be in commodities. Although I do know of one investor who made a large sum of money in a gold investment, I firmly believe that gold especially should be avoided as a long term investment. Contrary to popular opinion, gold does not act as a sufficient inflation hedge. The historical price data simply does not support this. If you want exposure to oil, you could, of course gain this by investing in an oil based ETF. I would suggest investing in the common stock of an oil company. Oil companies own large reserves in oil, and make a profit off the sale of oil, usually in flat percentage terms (around 8%), so when the price of oil is high, oil companies tend to make more money. This gives you exposure to oil in a profit driven industry. I don’t think your average investor needs to be in commodities. Although I do know of one investor who made a large sum of money in a gold investment, I firmly believe that gold especially should be avoided as a long term investment. Contrary to popular opinion, gold does not act as a sufficient inflation hedge. The historical price data simply does not support this.

If you want exposure to oil, you could, of course gain this by investing in an oil based ETF. I would suggest investing in the common stock of an oil company. Oil companies own large reserves in oil, and make a profit off the sale of oil, usually in flat percentage terms (around 8%), so when the price of oil is high, oil companies tend to make more money. This gives you exposure to oil in a profit driven industry.

]]>