^^^^^^^^ Everybody has and is entitled to their own opinion - on anything. That is exactly what makes a market.
My "opinions" posted in this thread are for INVESTING 102 -- and I write with that thinking cap on.
Many reading this thread are just beginning to invest, or are adjusting their investments. To jump into PM's as a hedge or anything else is INHO inappropriate. The levels of investment in something such as gold, to actually hedge against inflation would need to be around 30% of a investable portfolio.
At the levels of most investable funds that are reading this.. that wouldn't be a wise move.
Now -- if you want to hedge against inflation... look at the 10 year chart of McDonalds -- and overlay GLD (a gold ETF) -- and then make a comparison... and the real difference is that MCD paid out real cash on top of the share price growth.
I'm throwing this out there as a "talking point" only. This is how people learn about various investments. My point is that a person would have done just as well in a dividend payer like McDonalds as they would have in Gold...
On a total return basis, gold has had an average annual growth rate of 8.47% (1973-2010), while the S&P 500 TR Index has had an average annual growth rate of 9.84%... so holding gold over the S&P 500... you went behind.
People buy gold when they're scared. I just don't buy into fear. If you listen to the ads touting "buy gold now" - that's exactly what they're pitching.
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