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0 pointsdragontamer13y ago0 comments

I just noticed something: your links are "lying with statistics". Everyone knows that if you want to "prove" that Gold is a good investment, just start your graphs at 1970s.

After all, Gold reached a glorious bubble of inflation-adjusted $2200+ / ounce in 1970s, and has fallen since then. (yes, even with today's inflated prices, Gold is no where near its inflation-adjusted high).

Lets take a more reasonable graph of Gold, ehh? Something longer term... and see what happens to your trend.

http://www.macrotrends.org/1437/gold-to-s-p-500-ratio

Gold's trend is downward compared to the majority of the market. Each valley is lower, and each peak is lower than the last (with exception of stagflation period in the 70s)

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3 comments · 1 top-level

aneth413y ago· 2 in thread

I am saying gold is better than commodities. I'm saying gold is not a "piss poor" investment, as it holds its buying power quite well. That is the function of a conservative investment.

dragontamerOP13y ago

The S&P 500 (which you can easily buy with Vanguard Mutual Funds or SPY ETFs) has approximately the same volatility index as Gold right now.

http://finance.yahoo.com/q?s=^VIX http://finance.yahoo.com/q?s=^GVZ

VIX for the S&P 500 is 13.58, while Gold VIX is 13.13. Stocks are both holding their buying power as well as Gold, and still offering better returns right now.

Gold's "stability" is a myth. It is no more stable than any other investment. Bonds offer a conservative, stable investment platform. Gold does not.

Thrymr13y ago

Gold is a commodity.

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