Wednesday, September 29, 2010

Gold is trading like it’s lighter than air

The case against gold

Matthew Keator, a partner in the Keator Group wealth management firm in Lenox, Mass., urges that you consider what you're giving up to buy gold at current prices. Every bit of income is important at a time when prices of all sorts of assets appear out of whack and employment statistics are less than uplifting. Gold can be a small part of a well diversified portfolio, he says, but with the emphasis on small. "The problem is you don't get paid to wait" for gold's next leg up, Keator said. "You need income in this environment, but gold doesn't give you that."

Posted by mark @ 01:31 PM (1971 views)
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27 thoughts on “Gold is trading like it’s lighter than air

  • “You need income in this environment, but gold doesn’t give you that.”

    It’s not intended to – if you want income then get a job.

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  • agreed

    in this environment where BoE is explicitly ruining savers by keeping rates at artificial levels below inflation, and the government is taxing any interest, all I care about is preserving what I have earned. And doing that without feeding the banks or government.

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  • general congreve says:

    Fortune Magazine? HAHAHAHAHAHA!!! The irony!

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  • general congreve says:

    A thousand times more intelligence on the subject is to be gleaned from the comments, brilliant stuff.

    In a way this sort of trash talking article is good, because it helps keep a lid on demand, despite the huge fundamental pressures that are building underneath the market. As the pressure isn’t being released in a steady way (sensible coverage in the media would be one way to do this), when the top blows, it’s really gonna blow in a blind tidal wave of panic. As a famous American once said, “To infinity and Beyond!”.

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  • In a way this sort of trash talking article is good, because it helps keep a lid on demand, despite the huge fundamental pressures that are building underneath the market. As the pressure isn’t being released in a steady way (sensible coverage in the media would be one way to do this), when the top blows, it’s really gonna blow in a blind tidal wave of panic. As a famous American once said, “To infinity and Beyond!”.

    One key things to remember about gold, is that the rising price is nothing more than a sideshow…a tempreature guage thats indicative of much greater things [going wrong].

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  • “Gold is trading like it’s lighter than air”

    Someone’s sure to fart soon.

    Le Crunch.

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  • general congreve says:

    @5 – Get the sentiment, it’s definitely a barometer of the problems today, but a 28% return in the last 18 months makes it more than a side show for me, it’s more like the Dog’s Boll0x :))))

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  • tyrellcorporation says:

    28% Pah! I just reeled in over 300% in 12 months with the mining tip (thanks Moneyweek!) AYM – ANGLESEY MINING ORD.

    ‘Yippee-ki-yay MF’ to quote another famous American!

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  • Top managers expect further gold gains

    Long-term gold investors John Chatfeild-Roberts and Ian Henderson have positioned their funds to benefit from further highs in the price of the precious metal. Jupiter CIO Chatfeild-Roberts says the gold price is likely to be pushed higher by inflation and a drop in production. It has already risen 18% this year, and recently hit a series of all-time highs, peaking at $1,300/oz last week. “Gold is nowhere near the price it achieved in 1979 and the tremendous monetary and fiscal stimulus will lead to inflation in the long run,” the manager says.

    Full article @ http://www.investmentweek.co.uk/investment-week/news/1735332/top-managers-expect-gold-gains

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  • it’s like reading smugdog but with lots of different names and this time it’s about gold. If you lot think gold is going to the moon then great, if not get out with healthy profits, but do let it go. Smugdog gets it in the neck whenever he posts and yet, because ‘apparently’ gold is a hedge against the government and BoE ruining our savings, it’s OK to ramp, ramp, ramp. Now I am not an advocate of HPI, but neither am I an advocate of GPI, both of which can collapse, and one will collapse faster and harder than the other. My guess is it will be the one you can’t live in.

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  • bystander,

    If the price of gold goes down, I don’t worry because I don’t have enough of it.
    If the price of gold goes up, I worry because I don’t have enough of it.
    My only goal is to have enough gold so I dont worry about the price going up.

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  • As has been pointed out previously, general congreve is, particularly, a one issue bore. Very difficult to find a comment not about gold…

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  • @ another alan

    IMO: That is much more preferable someone who has an opinion on many issues but specializes in none. This site can sometimes seem like a support group for the clueless and helpless and that is infinitely more boring than someone who can only talk about one thing!

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  • For what it’s worth I think any alternative investment that’s a way of preserving savings is worth of discussion on HPC.

    Clearly a gold article will attract interest from those interested in it.

    I’m quite happy to read both sides of the article but am grown up enough to recognise a ramp.

    Sometimes the conversation does wander from the original post but that’s what makes for conversation surely.

    I say gold tampers should be safe from abuse if ramping on a gold article, providing there aren’t more than s couple of metal articles a day.

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  • As has been pointed out previously, general congreve is, particularly, a one issue bore. Very difficult to find a comment not about gold…

    Thanks for the comment. In future, don’t bother.

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  • If gold takes off, the Government will certainly introduce additional taxes which will p-ss on your firewok.

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  • you’ve all got them out today haven’t you!

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  • general congreve says:

    Thanks for the support estrader and HPW.

    @11- Yeah, I know, I’m a bit of a one track record on this, but it’s because I believe gold is the best thing to be in right now. This whole mess isn’t just about house prices, it’s far more complex than that and STR’s and savers stuck solely in cash are very likely to learn that to their cost. Hence my persistence in getting the message out. Plus I must admit to enjoying displaying a certain amount of smug satisfaction on here as the price continues to move up, isn’t that right Realist Bear? Realist Bear???

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  • general congreve says:

    @7 – Nice one, fair play on the 300% return. Hope you ploughed a decent portion of the gains into bullion 😉

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  • For those who think (or can’t decide) that commodity stocks are better than commodities, remember this: Companies go bankrupt, commodities never do.

    300% today might be bankrupt next month!

    …And YES Gold mining companies can and *DO* go bankrupt.

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  • …And YES Gold mining companies can and *DO* go bankrupt.

    Actually, most mining companies go bankrupt in the end – as they are usually extracting a commodity that is finite.

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  • “Actually, most mining companies go bankrupt in the end – as they are usually extracting a commodity that is finite”

    ——————————-

    “The world will run out of oil in 20 years time”

    They have been saying this every year for the last 30 years.

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  • “Actually, most mining companies go bankrupt in the end – as they are usually extracting a commodity that is finite”

    ——————————-

    “The world will run out of oil in 20 years time”

    They have been saying this every year for the last 30 years.

    Fair point, but most mining companies tend to be working in one or two area alone….whereas, if one is talking about oil generally, one has the whole world at ones disposal……obviously there is a chance that there will be some oil somewhere.

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  • I’m a bit disturbed by the comments which are almost all bullish for gold. When I first bought, I considerd gold buying to be a fringe activity. Judging by the comments, every Johnny-come-lately seems to want in – very bad.

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  • the number cruncher says:

    A fitting end for all you little gold fingers, Yesh Pushy:

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  • another alan – see what it like to be savaged by a dead sheep?

    i have no problem with GC going on about AU or is that GLD? And i have seen him make some challenging comments on other stuff. To be smug is one thing, no problem with that either. I do like the discussions re physical ETFs and buying at Bullion vault etc etc. But really is it necessary to end nearly every post with “got gold?”?

    Why do that GC? i mean cant you come up with a new catch phrase or even exhibit some imagination and make some sort of matrix of comments on the theme?

    I mean if people having arent you trying to make them feel inferior and if they have then , they have already so really whats the point?

    Maybe it should be somethig like i have now got y ounces of gold which i bought on average at $690 and ounce and its now worth x if we use the spot price of $1,300 an ounce.

    That would just make it a bit less boring as you would at least have some variables to play with. Really i am serious it would be fun knowing.

    of course “when” gold gets to $20,000 an ouce you can tell us that you are worth z.

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  • Sorry “I mean if people having arent you trying to make them feel inferior and if they have then , they have already so really whats the point?”

    was meant to say

    “I mean if people dont have any arent you trying to make them feel inferior and if they have some then really whats the point?” i mean wouldn’t it be as tiresome if everyone that did replied “yes thanks” ?

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