for awhile there, a zip of gold was less that a zip of the NorCali sticky icky. Currently its better but only by 60 bucks. I say fuck with some real estate in Houston or Austin Tx.
Today gold is worth $650 an ounce. That's a negative 26 year return.
The numbers are even more brutal when you take inflation over the last 26 years into account.
If you MUST buy gold, buy the exchange traded fund "GLD" so you won't have to pay exorbitant fees to sell it later.
Today gold is worth $650 an ounce. That's a negative 26 year return.
The numbers are even more brutal when you take inflation over the last 26 years into account.
If you MUST buy gold, buy the exchange traded fund "GLD" so you won't have to pay exorbitant fees to sell it later.
not to mention gold often generates negative cash flow (storage fees) while real estate generates positive cash flow (renting the place out and making little profit each month)
Real estate by far. People will always need a place to live, they don't really need gold. You can use anything as a currency, can't use anything as a place to live ;)
If one was better, nobody would be investing in the other. It really depends on the situation, and your investment goals. For instance, gold goes up when people worry about the stability of the economy, or of the dollar.
Real estate has greater long term prospects but you have added work. Sout african gold mines generate a positive return and usually are out of favor do to the conditions. Might be a nice yield builder.
Today gold is worth $650 an ounce. That's a negative 26 year return.
The numbers are even more brutal when you take inflation over the last 26 years into account.
If you MUST buy gold, buy the exchange traded fund "GLD" so you won't have to pay exorbitant fees to sell it later.
Your comapring 1980 dollars to todays dollars. There is no comparison. Gold today is so underfalued.
I started buying up gold in 2001 when it was around $300 an ounce. Price today, $650..
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buy some land and plant some corn! E85 might be bullshit, but the farmer mafia will be cashing in big time on this one.
In answer to the question - gold. After the republicans have secured their spot in the next election the housing market will collapse in many major cities, inflation could become a serious issue, and it doesn't look like the middle east is stabilizing in any hurry. Gold is still a bargain at these levels. You don't have to just buy GLD or coins.
The junior mining field is exploding right now, it might be riskier but the payoffs could be huge.
This shows how undervalued gold is today compared to the high in 1980
Quit drinking the kool-aid man.
For gold to ever reach those kinds of levels again we would need hyper-inflation like we had back then. The fed isn't going to let that happen, they're still raising rates in the face of a slowing economy because they're such inflation hawks.
The only people who will tell you that gold is a good investment are either A) Trying to sell you gold, or B) Have been convinced to buy gold and are trying to justify their decision.
Your comapring 1980 dollars to todays dollars. There is no comparison. Gold today is so underfalued.
It's either undervalued today OR it was overvalued in 1980.
That's like saying the NASDAQ used to be at 5000, and today it's only at 2041, so it must be so undervalued.
Yet we all know that at 5000 the NASDAQ was ridiculously overvalued, so you can't really compare today's prices to the all time high and use that as the basis for a decision to invest.
I also think it's VERY FAIR to compare an investment vehicle in historical terms. If you had invested in real estate or the stock market in 1980 you would have tripled or quadrupled your investment easily in the past 26 years.
If you bought gold in 1980 you would have lost 2/3 of your purchasing power by now.
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