Comments on: A Sobering Look at Gold Investing http://dailyreckoning.com/a-sobering-look-at-gold-investing/ Entertaining Ideas on the Economy, Markets, Gold, Oil and Investing Strategies. Sat, 11 Feb 2012 01:59:47 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: The Last Judge http://dailyreckoning.com/a-sobering-look-at-gold-investing/#comment-8376 The Last Judge Sun, 17 May 2009 14:22:51 +0000 http://dailyreckoning.com/?p=15623#comment-8376 Roubini is a socialist, that is why he termed Gold a barbaric relic. Gold prevents people from dying while it (ok, sort of) needs people dying to be rising in value. Thereofore barbaric. Roubini is a socialist, that is why he termed Gold a barbaric relic. Gold prevents people from dying while it (ok, sort of) needs people dying to be rising in value. Thereofore barbaric.

]]> By: Jan Baer http://dailyreckoning.com/a-sobering-look-at-gold-investing/#comment-8354 Jan Baer Sun, 17 May 2009 07:00:56 +0000 http://dailyreckoning.com/?p=15623#comment-8354 Once again people think that the prices of food, shoes or cars will rise to match that of gold. This was only true before 1933. Gold could be 50 cents an ounce or one million dollars an ounce, and it would have no effect on the price of bread. My favorite example is car prices. In 2000, an average new car cost $20k and gold was under $300/ounce. Today an average new car is below $20k while gold is over $900 an ounce. The car price did not go up to $60k as it would have if it had followed gold. Once again people think that the prices of food, shoes or cars will rise to match that of gold. This was only true before 1933. Gold could be 50 cents an ounce or one million dollars an ounce, and it would have no effect on the price of bread.

My favorite example is car prices. In 2000, an average new car cost $20k and gold was under $300/ounce. Today an average new car is below $20k while gold is over $900 an ounce. The car price did not go up to $60k as it would have if it had followed gold.

]]> By: Roger Gunn http://dailyreckoning.com/a-sobering-look-at-gold-investing/#comment-8290 Roger Gunn Sat, 16 May 2009 15:39:47 +0000 http://dailyreckoning.com/?p=15623#comment-8290 Dear Mighty Mogambo. You're great. However, I have to tell you the correct word is uninterest(or if you need a phrase - lack of interest, not disinterest. Disinterest means absence of bias. Apart from that, keep it up. When I have money, I buy gold. If there's any left over I buy luxuries like food and clothing. Dear Mighty Mogambo.

You’re great.
However, I have to tell you the correct word is uninterest(or if you need a phrase – lack of interest, not disinterest. Disinterest means absence of bias.

Apart from that, keep it up. When I have money, I buy gold. If there’s any left over I buy luxuries like food and clothing.

]]> By: BR http://dailyreckoning.com/a-sobering-look-at-gold-investing/#comment-8161 BR Fri, 15 May 2009 08:36:57 +0000 http://dailyreckoning.com/?p=15623#comment-8161 Oh, Mogambo Guru, I love you. Ever since I first read you when gold was $250/oz. around '02. I hope I meet you someday to shake your hand. Keep writing! Oh, Mogambo Guru, I love you. Ever since I first read you when gold was $250/oz. around ’02. I hope I meet you someday to shake your hand. Keep writing!

]]> By: Lemon Pie Kid http://dailyreckoning.com/a-sobering-look-at-gold-investing/#comment-8085 Lemon Pie Kid Thu, 14 May 2009 15:01:18 +0000 http://dailyreckoning.com/?p=15623#comment-8085 Be careful what riches you wish for, Blessed Vocabular Mogambo (BVM): ''As the lights lower, I slowly sink into a very theatrical heap of collapsed humanity to visually portray mankind’s complete loss of hope, dreamy dreams dashed on the rocks of despair, the very essence of a desperate man who wants gold to immediately shoot up in price so that he can get so suddenly rich that he can skip town and start life over, someplace new, perhaps finding real happiness, . . .'' because gold at $9,231.00/oz. (X10) means a loaf of bread costs $88.50 (X30), a gallon of water costs $29.70 (X30), a roll of toilet paper costs $14.70 (X30) . . . you can't eat gold or use your hand. Be careful what riches you wish for, Blessed Vocabular Mogambo (BVM):

”As the lights lower, I slowly sink into a very theatrical heap of collapsed humanity to visually portray mankind’s complete loss of hope, dreamy dreams dashed on the rocks of despair, the very essence of a desperate man who wants gold to immediately shoot up in price so that he can get so suddenly rich that he can skip town and start life over, someplace new, perhaps finding real happiness, . . .”

because gold at $9,231.00/oz. (X10) means a loaf of bread costs $88.50 (X30), a gallon of water costs $29.70 (X30), a roll of toilet paper costs $14.70 (X30) . . . you can’t eat gold or use your hand.

]]> By: Teresa http://dailyreckoning.com/a-sobering-look-at-gold-investing/#comment-8079 Teresa Thu, 14 May 2009 14:19:18 +0000 http://dailyreckoning.com/?p=15623#comment-8079 Hi Mogambo, I disagree with you on timing of gold accumulation. I think quite an opposite, gold has to go dramatically down before it become healthy to put your money in. In Depression money are destroyed, gold becomes a luxury investment for a few and gold has to go down! and only after it gold becomes a treasure to keep... Teresa Hi Mogambo,
I disagree with you on timing of gold accumulation. I think quite an opposite, gold has to go dramatically down before it become healthy to put your money in. In Depression money are destroyed, gold becomes a luxury investment for a few and gold has to go down! and only after it gold becomes a treasure to keep…
Teresa

]]> By: Alexandr http://dailyreckoning.com/a-sobering-look-at-gold-investing/#comment-8066 Alexandr Thu, 14 May 2009 10:11:54 +0000 http://dailyreckoning.com/?p=15623#comment-8066 You know what? It is a famous definition for gold - Barbaric Relict. It is probably true, but are we all Barbarians at lesser extent than our ancestors? Given the mental outlook of average american sitizen, I doubt so. So lets return to our relicts, as we well deserve them:) You know what? It is a famous definition for gold – Barbaric Relict. It is probably true, but are we all Barbarians at lesser extent than our ancestors? Given the mental outlook of average american sitizen, I doubt so. So lets return to our relicts, as we well deserve them:)

]]> By: Karmaisking http://dailyreckoning.com/a-sobering-look-at-gold-investing/#comment-8056 Karmaisking Thu, 14 May 2009 08:27:08 +0000 http://dailyreckoning.com/?p=15623#comment-8056 Mogambo, Please I beg you do something with this gem from Roubini in today's NYT. It's so hilarious I can't stop laughing!!! "Gold is still a barbaric relic whose value rises only when inflation is high." Did he say that?! Like that is a DISadvantage for gold? Is he MAD? Or am I? HAHAHA!!!! Mogambo,

Please I beg you do something with this gem from Roubini in today’s NYT. It’s so hilarious I can’t stop laughing!!!

“Gold is still a barbaric relic whose value rises only when inflation is high.”

Did he say that?! Like that is a DISadvantage for gold? Is he MAD? Or am I? HAHAHA!!!!

]]> By: CanadaNorth http://dailyreckoning.com/a-sobering-look-at-gold-investing/#comment-8046 CanadaNorth Thu, 14 May 2009 05:17:18 +0000 http://dailyreckoning.com/?p=15623#comment-8046 Look Mogambo, I read everything else first every evening around 9 o'clock. I then read your article last, the reason being is that I can't figure out how you keep making all of this crap so interesting every day. Also when you miss writing an article every once in a while I feel cheated, plus instead of going to sleep happy I'm cranky, thinking of when I'll get my fix, hopefully the next day. I don't know if this is a compliment or an insult, you decide, well we have to read it don't we? Best Regards,CanadaNorth Look Mogambo, I read everything else first every evening around 9 o’clock. I then read your article last, the reason being is that I can’t figure out how you keep making all of this crap so interesting every day. Also when you miss writing an article every once in a while I feel cheated, plus instead of going to sleep happy I’m cranky, thinking of when I’ll get my fix, hopefully the next day. I don’t know if this is a compliment or an insult, you decide, well we have to read it don’t we? Best Regards,CanadaNorth

]]> By: Fahad http://dailyreckoning.com/a-sobering-look-at-gold-investing/#comment-8045 Fahad Thu, 14 May 2009 05:13:26 +0000 http://dailyreckoning.com/?p=15623#comment-8045 MG is a prolific columnist. It is his unnecessary TLA's (Three Lettered Acronyms) which make his articles utterly unreadable, spoiling the flow of an intelligent comment. Thanks to his TLA's,I have skipped all his articles except for three. Thus, hardly benefitting from his otherwise amazing wisdom. MG is a prolific columnist. It is his unnecessary TLA’s (Three Lettered Acronyms) which make his articles utterly unreadable, spoiling the flow of an intelligent comment.

Thanks to his TLA’s,I have skipped all his articles except for three. Thus, hardly benefitting from his otherwise amazing wisdom.

]]>