Never said it was useless, but thanks for explaining buy low, sell high, I’d missed that one. Never predicted it would keep dropping either–just don’t see it worth the risk versus likely continued gains/ Never said the world had changed.
Speaking of history, the price of gold has historically increased about 7-8%, do you think the world has changed? Its several year run-up has just about put it back to its price during the last stagflation craze in the late 70’s. As prices go up, they dig more out of the ground, price goes down. Last analysis I saw was about $350-400 to dig it out, that is some incentive to dig up more as prices top $600.
Wheat was cheap a few ago… great, what’s your point?
Gold is either a hedge against inflation or speculation based upon increasing hordes upon hordes of inexperienced investors thinking that they’ve outsmarted the market. The only people that I expect to see see beating market returns with gold over the last ~10yrs are gold salesmen.
If gold was rising (in dollars) mainly because of US inflation, I might buy into your idea. But check gold versus almost every major currency, it’s way up. The last time gold ran up in anticipation of worldwide inflation, it proceeded to drop back to its historic return, losing about half its price. This is likely to occur again, unless, as you are fond of saying, the world has changed.
