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"The price of gold has beaten U.S. stocks, bitcoin and even shares of AI wonder-stock Nvidia this year. There’s no saying how far that epic run will go, but there are almost certainly better places to park your savings in the long run. History and common sense tell us so."
"But there’s probably a better way to shield your wealth: stodgy stocks that are resilient to inflation. A company that owns oil reserves, land or factories whose debt would be debased by inflation could hold its value. Unlike gold, it also can pay you dividends while you wait for doomsday. Companies with intangible assets like patents or brands might do fine, too."
Another clickbait article. The LT is great, but there are opportunities, and gold was one of them.
Buffett often spoke critically about gold — and for decades, he took a similar stance on high-tech stocks. Yet eventually, he bought Apple, which at one point made up more than 40% of his portfolio.
Quote:
a dollar in the S&P 500 with dividends reinvested would have grown to nearly $1 million and small-capitalization stocks to almost $5 million.
mmm...Since 2010, small-cap stocks have significantly underperformed compared to the QQQ — the Nasdaq 100 has delivered about 3.7 times higher returns. (https://schrts.co/vaYbxZFV)
Thanks FD for yet another "Yeah but..." irrelevant response.
Your response was irrelevant. The article is a click bait one. There is nothing new in it. Let's write another one. LT, stocks will do better than bonds...what a revelation.
A click bait article from a respected writer at the WSJ. That's a new one from the maga bumpkins. Tell me what is new when writing about gold and the markets? What were you expecting? A new way to double the price of gold overnight? Go get your meds checked.
Golly gee, when I went on the internet today, I was hoping someone would tell me what to read and how to assess the content. Praise the Lord! It is my lucky day. That never happens.
We need more people to filter content/ideas, so all us inexperienced bumpkins can be protected from ourselves. How ever do these purveyors of wisdom find the time, after telling their wives, friends and assorted family members how to groupthink?
Maybe an internet propaganda minister? Or a whole team of thought police? Perhaps a grammar-challenged individual could perform the function?
"The price of gold has beaten U.S. stocks, bitcoin and even shares of AI wonder-stock Nvidia this year. There’s no saying how far that epic run will go, but there are almost certainly better places to park your savings in the long run. History and common sense tell us so."
"But there’s probably a better way to shield your wealth: stodgy stocks that are resilient to inflation. A company that owns oil reserves, land or factories whose debt would be debased by inflation could hold its value. Unlike gold, it also can pay you dividends while you wait for doomsday. Companies with intangible assets like patents or brands might do fine, too."
Another ideas are value stocks, beaten down sectors such as healthcare, consumer staples, and REITs could help diversified away from AI related stocks. The article above is actually informative; certainly not click-bait if one read its content thoroughly.
" A company that owns oil reserves, land or factories whose debt would be debased by inflation could hold its value. Unlike gold, it also can pay you dividends while you wait for doomsday. Companies with intangible assets like patents or brands might do fine, too." Well, how about some examples, detail on these companies ?
YTD: GLD=62.7%...SPY=13.8% 1 Month: GLD=16.5%...SPY=0.3% So, you can doubt the future of GLD, but in 2025 it's so much better, and that's why I have based my investments on current markets. I don't care about the past either. I don't own risky stuff anymore since retirement in 2018. It doesn't mean you must own a high %. A 10-15% is all you need.
If you're an active investor, there are always areas which are temporarily (open to interpretation) attractive. Imo, the Market is quite narrow at present: it's AI infrastructure (semiconductors and power generation), Rare Earths, and other metals of various kinds; including gold and silver. If you're going to be active, then you don't need to be diversified. If you're going to be passive, then you need diversification. Everything else is just detail.
If I could find an inverse 1X etf I’d have a small short on gold, precious metals ot miners, But the few available appear only to be 2X and 3X.
Attempted to buy DGZ at open yesterday, but it’s a weird animal. Didn’t go through. I should have saved the pop-up note from Fido. Something about only being able to purchase this one after day’s trading close. Obviously, it’s something other than an ETF. Morningstar shows it having only a few $Mil AUM.
Gold may run a lot higher still. At some point (next few years) I believe it will retrace to $3500, if not lower. I remember buying a bit at $800-$850 when I was very young and selling it 3 or 4 years later at around $400. Folks should be very carful playing the mining funds. There have been periods when some shed more than 50-60% over very short 2-3 year periods. That was sometime before 2015 which is about as far back as some trackers show. At Yahoo, you should be able to pull up OPGSX a long way back and see what could happen.
Some issues I have with gold at these prices: (1) The rapid recent rate of appreciation. Does anyone really think we’re headed for 30, 40 or 50% annual inflation? That would seem to be what this “inflation hedge” is implying. (2) If worried about the dollar, there are funds that invest in foreign currencies & local debt. Yes, you might lose money, but the risk isn’t as high as for gold. Broad base commodities are also an option. (3) Where will you spend your gold (if you’re hoarding the physical stuff)? To carry an ounce down the street at $4000+ an ounce you’d better be well armed and wearing a bullet proof vest. Do I need $4,000 in my pocket to shop? You can still buy a perfectly fine bottle of single malt for under $100.
Comments
The LT is great, but there are opportunities, and gold was one of them.
Buffett often spoke critically about gold — and for decades, he took a similar stance on high-tech stocks. Yet eventually, he bought Apple, which at one point made up more than 40% of his portfolio.
Quote: mmm...Since 2010, small-cap stocks have significantly underperformed compared to the QQQ — the Nasdaq 100 has delivered about 3.7 times higher returns.
(https://schrts.co/vaYbxZFV)
The article is a click bait one.
There is nothing new in it.
Let's write another one.
LT, stocks will do better than bonds...what a revelation.
We need more people to filter content/ideas, so all us inexperienced bumpkins can be protected from ourselves. How ever do these purveyors of wisdom find the time, after telling their wives, friends and assorted family members how to groupthink?
Maybe an internet propaganda minister? Or a whole team of thought police? Perhaps a grammar-challenged individual could perform the function?
Look at INFL it is 25% gold and basic materials but also lots of energy and financial firms
1 Month: GLD=16.5%...SPY=0.3%
So, you can doubt the future of GLD, but in 2025 it's so much better, and that's why I have based my investments on current markets. I don't care about the past either.
I don't own risky stuff anymore since retirement in 2018.
It doesn't mean you must own a high %. A 10-15% is all you need.
this has become a webseminar on how 0.1% moved from bonds to gold and amazon can really move the needle...even if retrospectively !
Attempted to buy DGZ at open yesterday, but it’s a weird animal. Didn’t go through. I should have saved the pop-up note from Fido. Something about only being able to purchase this one after day’s trading close. Obviously, it’s something other than an ETF. Morningstar shows it having only a few $Mil AUM.
Gold may run a lot higher still. At some point (next few years) I believe it will retrace to $3500, if not lower. I remember buying a bit at $800-$850 when I was very young and selling it 3 or 4 years later at around $400. Folks should be very carful playing the mining funds. There have been periods when some shed more than 50-60% over very short 2-3 year periods. That was sometime before 2015 which is about as far back as some trackers show. At Yahoo, you should be able to pull up OPGSX a long way back and see what could happen.
Some issues I have with gold at these prices: (1) The rapid recent rate of appreciation. Does anyone really think we’re headed for 30, 40 or 50% annual inflation? That would seem to be what this “inflation hedge” is implying. (2) If worried about the dollar, there are funds that invest in foreign currencies & local debt. Yes, you might lose money, but the risk isn’t as high as for gold. Broad base commodities are also an option. (3) Where will you spend your gold (if you’re hoarding the physical stuff)? To carry an ounce down the street at $4000+ an ounce you’d better be well armed and wearing a bullet proof vest. Do I need $4,000 in my pocket to shop? You can still buy a perfectly fine bottle of single malt for under $100.