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Gold Is Not An Investment.

 
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Valued Member
Canada
319 Posts
 Posted 05/21/2019  08:46 am  Show Profile   Bookmark this reply Add vonigohcr to your friends list Get a Link to this Reply
I am challenged by the title of this thread and my inner pedant has surfaced. Gold is an investment, just one with a fairly poor ROI depending on the period of evaluation you select.

Everything you purchase falls into one of three categories...
1) Consumables... Things you buy and use... Think Gasoline/Petrol, Food, Clothing.
2) Raw Materials... Things you buy and use to make other things... e.g. Wood to make houses, Steel to make cars and yes gold for jewelry.
3) Investments... Things you buy and store until you or your heirs sell. Stocks, bonds, Precious metals, Doulton Figurines and most collectables.

If you do nothing to add value to an item and don't consume it... it will be sold (or disposed of) in essentially the same condition you purchased it and in that case, it is an investment or collectible. You may invest for enjoyment (collecting) or for income/growth (stocks) but your treatment of the item is little different. A collection is an investment regardless of the ROI on that investment. Whether the collection is beanie babies, gold/silver coins, Doulton figurines, silver teaspoons or horse brasses it represents an investment. It will be in essentially the same condition (storage specifics being adequate) when it is either sold or disposed of.

If the question is whether Gold is a good investment then that is a different question that many of the responses above have addressed. Gold is not a consumable though depending on your trade/craft, it can be a raw material however most gold sold in coin or bar format is for investment purposes.
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United States
74775 Posts
 Posted 05/21/2019  10:10 am  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
Yep - not a whole lot of use at all right there! /s


Quote:
Speaking of precious - this time of year many of us are investing our time in morel mushroom hunts - that fungus is worth it's weight in gold!
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United States
282 Posts
 Posted 05/21/2019  3:17 pm  Show Profile   Bookmark this reply Add Sharkman to your friends list Get a Link to this Reply
Vonigohcr
Sometimes pedantry is necessary, helpful and focusing.
I am no economist, and your three category explanation seemed oversimplified, so I gave it some thought and ultimately found myself circling back to your three categories. Business expenses: Start up capital—investment, operating expenses— consumables; burying a brick in the back yard—unused raw materials; things bought to save money (say an electric car) that are expected to be sold or traded in for a lower price—consumables with salvage value and lower costs of operation which are also consumables.
The best I could do were some head of pin arguments that were really pretty silly.
So I have to accept your conclusion that gold is an investment.
Why all the mental gymnastics? I wanted you to be wrong because I had a strong personal opinion that gold would be a bad investment for me that I improperly projected on others with different circumstances and risk tolerance. You are correct that I and others used the reasons why gold would be a bad investment for ourselves, that I, at least, found myself treating as universal truths.
The best discussions cause people to change their minds. I'm glad I've been part of this one.
Pillar of the Community
United States
1923 Posts
 Posted 06/07/2019  1:50 pm  Show Profile   Bookmark this reply Add thq to your friends list Get a Link to this Reply
Lately the investment-ish aspect of gold has been showing, in the rising price. Why?

No shopping these days, though sometimes these moves surface some semi-collectable coins as people cash in.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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3727 Posts
 Posted 06/07/2019  6:20 pm  Show Profile   Bookmark this reply Add fistfulladirt to your friends list Get a Link to this Reply

Quote:
safe haven, dismal jobs report.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
Pillar of the Community
United States
1923 Posts
 Posted 06/09/2019  7:11 pm  Show Profile   Bookmark this reply Add thq to your friends list Get a Link to this Reply
Yesterday WSJ attributed the recent little run-up in gold price to the anticipated Fed rate cut. Miners are also up.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
06/09/2019 7:15 pm
Valued Member
United States
476 Posts
 Posted 06/10/2019  6:47 pm  Show Profile   Bookmark this reply Add everything to your friends list Get a Link to this Reply
I thought I would mention the India gold play. The people and the temples are each holding 20 thousand+ tons each. Their relationship with gold goes back a long time, it's cultural too, they like to wear it. They've had periods of harsh inflation, and likely had problems with banker corruption. A gold transaction would be like .. anti-taxman. They want us to just forget about gold, and most have, we have life so easy.

The India central bank recently started buying gold, for years they were hoping the people would lease them the gold, why I do not know, but the people had no interest.
Valued Member
Canada
51 Posts
 Posted 06/20/2019  12:18 pm  Show Profile   Bookmark this reply Add sbr to your friends list Get a Link to this Reply
nice day for gold if it holds, should have bought more.
New Member
Australia
6 Posts
 Posted 06/20/2019  8:28 pm  Show Profile   Bookmark this reply Add ribmat to your friends list Get a Link to this Reply
I went panning for gold for the first time last weekend. It was dusty, uncomfortable, muddy in areas and very hard work. I found some tiny pieces that my scales wouldn't even weigh. But I can't describe how exciting it was to see the yellow! I am going back. This is a totally irrational financial decision I could earn vastly more driving an Uber but... it isn't about being an investment. People want gold because it is quite literally in our DNA, after trading it for thousands of years. It is also very rare. These are the properties that make Gold at the very least, a very transportable desirable store of value.
Valued Member
Canada
51 Posts
 Posted 06/20/2019  11:49 pm  Show Profile   Bookmark this reply Add sbr to your friends list Get a Link to this Reply
My brothers broker told him if gold breaks 1400 they are going to buy more, they have already bought a bunch .While I have some physical I bought the BMO junior miners etf the other day and it seems to be moving quite nicely along with Kirkland.
Pillar of the Community
United States
1923 Posts
 Posted 06/22/2019  07:35 am  Show Profile   Bookmark this reply Add thq to your friends list Get a Link to this Reply
A price over $1400 gives me an urge to sell, not buy.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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3956 Posts
 Posted 06/22/2019  9:12 pm  Show Profile   Bookmark this reply Add macmercury to your friends list Get a Link to this Reply
According to Kitco article, the next gold break point would be $1,700, but its all speculative.

The Mercury Dimes Specialist!
Current project: US Dansco 7070 Album
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3727 Posts
 Posted 06/22/2019  10:11 pm  Show Profile   Bookmark this reply Add fistfulladirt to your friends list Get a Link to this Reply
Gold's taking off!

Quote, 2012. 2013. 2014. 2015. 2016...you get the picture.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
Valued Member
United States
404 Posts
 Posted 08/03/2019  5:56 pm  Show Profile   Bookmark this reply Add cuzzx to your friends list Get a Link to this Reply
I came here today to think about buying gold, coins or bullion . these were going to be my question to you guys.
after reading all the post here I have decided to go back to what my dad did and what he told me.
buy dirt, no more will ever be produced . land in other words.
back in the 1960s he bought land for $100 per acre, it sells today by where its at for $5000 to $100,000. per acre and up.
thanks for the help.
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3727 Posts
 Posted 08/04/2019  5:18 pm  Show Profile   Bookmark this reply Add fistfulladirt to your friends list Get a Link to this Reply
@cuzzx I somewhat agree with the land investment, although, unfortunately, unlike coins that one owns, even bought and paid for property will always have two owners. Always.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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