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Commodities prices are volatile. Film at 11.
I told you that gold would be the next to collapse...then would have been a good time to sell.....
Unless your a long term holder, the bottom to this could be 'ugly'.....
http://finance.yahoo.com/blogs/daily...150633740.htmlThis morning, gold prices crashed through $1,300 an ounce, hitting the lowest level in two years. At $1,300, gold is now down 30% from its peak. And all investors who finally bought into the gold mania over the past couple of years are now underwater.
If this were mere "volatility"--if gold had some fundamental value that it would likely eventually return to--then the price drop would be no big deal. But there's no solid theoretical way to "value" gold, so its price could do almost anything. Gold prices could fall another 50% to $650, for example, and still be 50% above their level for the prior couple of decades. (In case you needed any more evidence that gold prices don't always go up, from the late 1980s to the early 2000s, gold prices dropped by more than half.)
Yes, gold prices could also take off like a rocket again. Anything's possible. But speculating about what gold prices will do is speculating, not investing, and many of the folks who bought gold or gold funds over the past few years have assumed they were "investing."
What is now clear, moreover, is that the primary argument for buying gold--the argument that gold would protect you from the hyper-inflation that would surely follow the government's crazy money-printing--has been flat-out wrong.
Commodities prices are volatile. Film at 11.
Just can't understand the value of gold. You put it on your neck and act n!gger-rich?
I'm still waiting for people to line up for miles in China for a chance to take delivery of an apple stock certificate.
The value is buying it at 300, forget that you have it, then sell at 1500 when Peter Schiff disciples panic buy……
There is a happy medium. Don't expect it to drop to $500 either. Bernake signals that the end is coming to infinite QE and pumping 85 Billion a month into the banks. Stocks, bonds, and gold take a . News at 11.
Actually, Apple is cheap right now.
We'll see if Apple can maintain Jobs' mystique, success that it failed to do after Sculley fired him. I read that lots of Apple people are jumping ship now that the stock options aren't so wonderful.
Did I call it, or what...
If by I you mean everyone then yes you did.
http://www.forbes.com/sites/kitconew...uke-professor/
FWIW....Gold prices fell to roughly $1,220 an ounce Wednesday, nearly a three-year low, and further downside may be possible for the metal.
That downside could be a longer-term move for gold, too, as the metal may be moving back to its fair value, according to Campbell Harvey, professor at Duke University’s Fuqua School of Business, who has done academic research regarding the value of gold.
Harvey’s research puts the long-term fair value of gold at $800 an ounce, which is about $400 an ounce lower than current prices.
Fair value is “an average, so to get to the average, there are prices above and below it. We’ve been above it for a number of years,” Harvey told Kitco News.
That means there is “considerable downside here,” Harvey said, given that prices don’t necessarily go to fair value and sit there.Gold has a tendency to be very volatile in the short-term, but is a good store of value in the long-term, he said, with “long-term” defined by centuries.
The authors of the study did a fascinating analysis though, when they said "long term".... hehehhehe
Wowie zowie. Roman centurian pay = US army captian pay.In one example, the authors compared the salary of a Roman centurion to the annual salary of a U.S. Army captain, and found that the annual pay is almost similar. A U.S. Army captain makes about $46,000 a year, while a Roman centurion received the equivalent of 38.58 ounces of gold annually. Using the current $1,220 an ounce as a price, 38.58 ounces comes out to be about $47,000.
The salary comparisons were the most interesting part of their research, Harvey said, and it shows that gold is a good store of value over thousands of years. The problem is, no one lives that long.
He was quick to point out, however, that he is not anti-real assets investing. Specifically, he said a diversified portfolio of real assets, which can include gold, helps to offset unexpected es in inflation. He said owning a commodity index will do a better job than holding just gold.
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