10/23/2008

Gold? A Fake

I had clients going long gold, spreading gold, buying the bullion and so on BUT there was no sense of a value. Nobody not in their deep 80s has any experience with gold as real money. FDR took us off the gold standard and that was it. Gold is an idea, not a substance. It is this insubstantial awareness of the metal that makes the gold market just another hype. The ads convince people to buy til they find they can't sell it and then they just dump it hoping to say alive. The only safe harbors are Treasury Bonds and Notes.

1 comment:

Xiaoding said...

Not only that, but you buy retail, and have to sell wholesale. Sucks ass. Coins? Forget it!

Now, gold mining stock, thats a different story. Long as you realize a gold mine is a hole in the ground, surrounded by promoters.