Still buy gold?

onemorething - yes, you do come across as RANTING! Not everyone has the same opinion about things and they're entitled to an opinion regardless of the views of others. I would have thought Amanda Le was right in her suggestion that markets are for buying and selling, not buying for long term only as you said. People invest for any length of time they see fit. Your second paragraph in your 4th posting is what most people do - sell because of risks etc. Isn't that how markets work?


Asking what gold is is irrevelant. Regardless of what the commodity is, it's still in the market and is sold and bought.

Warren Buffet on Gold


"It gets dug out of the ground in Africa, or some place. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."


Gotta say, he has a point

well its been doing well for about 5 years now, gone from like US$250 or something to nearly US$1000 per Oz at its peak that's a 400% return if you bought at the trough and sold at the peak, I can't see many indexes beating that in the same time period other than the odd emerging market. Whether its rational is another matter. Personally I'm not a fan, I cant see the reasoning behind its gains, though there may be an increase in demand from emerging countries as more people can afford it, I hardly see the same increase in demand as is occurring in say crude oil, which to me suggests its largely psychological. Some people say it is a good inflation or dollar hedge, but given it has no utility other than jewellery and perhaps a few industrial uses, I don't understand why that is.