| Author |
 Topic  |
|
|
Nickelless
Administrator
USA
5580 Posts |
 Posted - 01/20/2009 : 01:37:10
|
This was in Sunday's Chicago Tribune:
You must be logged in to see this link.
By Andrew Leckey
Gold has long been considered a hedge against a loss in the purchasing power of paper currencies. But no one can ever call it a comforting or predictable hedge.
While gold prices ended 2008 just a bit higher than they began it, investors were taken on a thrill ride. After climbing above $1,000 an ounce in March, gold began a descent and ended the year at $884.30.
Despite the swoon of stocks and gold alike from their highs last year, gold typically performs so differently from stocks that a small dose of gold is increasingly being included in mainstream portfolios. Gold generally also moves in the opposite direction of the U.S. dollar.
"I own a small amount, an insurance policy's worth, of gold, some in gold coins but most in exchange-traded funds," said Dennis Gartman, editor and publisher of the Gartman Letter financial trading commentary in Suffolk, Va., who believes 5 percent of an individual's portfolio in gold is enough. "I keep the physical gold in a lockbox, just in case, but I hope I lose money on it because that would mean all my other investments are doing better."
Besides gold coins or bullion, the more accessible vehicles for gold investment are mutual funds or exchange-traded funds.
The SPDR Gold Trust, an ETF that invests directly in the underlying commodity rather than in gold-mining stocks, issues shares that are each equal in value to one-tenth of an ounce of gold. Launched in 2004, it gained 5 percent last year, 30 percent in 2007, 23 percent in 2006 and 18 percent in 2005.
"With the exception of the 30-year Treasury bond, gold has held up better than other asset classes and has been in a general upward trend since 2001," said Leo Larkin, precious metals and mining analyst with Standard & Poor's Corp. in New York, who considers keeping 5 percent to 15 percent of an individual's portfolio in gold to be reasonable.
Larkin said a multiyear bull market in gold is still under way and has several years to go. He and Gartman expect gold prices to exceed $1,000 an ounce in 2009, and both recommend the SPDR Gold Trust as a convenient investment vehicle. That ETF can be traded at any time on an exchange and doesn't carry the management or geopolitical risks associated with stocks of gold-mining companies.
"Even though gold prices were relatively flat last year when you compare the beginning of the year to the end, an investor was better off holding gold" than the stocks of the Dow Jones industrial average, said Mike Mapa, editor of InsideMetals.com in Reno, Nev. "By the end of the first quarter of 2009, gold will test $950 an ounce, and I wouldn't be surprised if it reached $1,200 by year-end, which would tell me the economy still has problems."
Mapa said major mining companies should do well in 2009 thanks to increased consolidation within the industry. The biggest will be able to snap up quality small and midsize mining companies that have been unable to obtain financing.
Jeffrey Christian, managing director of CPM Group in New York, predicts gold will be around $850 an ounce at year-end, though he expects it will hit a new high along the way. He expects the recession should be ending by then, so stocks and bonds will look more attractive, interest rates might start rising, and the case for gold will be less compelling.
"We haven't seen ordinary investors abandon gold by a long shot, because whenever the market is doing poorly, people have a 'death-bed conversion,' and their faith in gold is restored," he said.
Individual gold-mining stocks have had a rough time. Mutual funds that invest primarily in those stocks declined 33 percent last year, according to Lipper Inc., though their five-year annualized return is nearly 7 percent.
|
Visit my new preparedness site: Preparedness.cc/SurvivalPrep.net
--Latest article: Stocking up on spices to keep food preps lively
---------------
Be prepared...and prepared to help: http://www.survivalblog.com/charity.html
Are you ready spiritually for hard times? http://www.jesusfreak.com/rapture.asp |
|
|
redneck
1000+ Penny Miser Member
1273 Posts |
Posted - 01/20/2009 : 05:23:44
|
quote:
"I own a small amount, an insurance policy's worth, of gold, some in gold coins but most in exchange-traded funds," said Dennis Gartman, editor and publisher of the Gartman Letter financial trading commentary in Suffolk, Va., who believes 5 percent of an individual's portfolio in gold is enough. "I keep the physical gold in a lockbox, just in case, but I hope I lose money on it because that would mean all my other investments are doing better."
Some in gold coins but most in exchange-traded funds
Yeah right...
Who believes 5 percent of an individual's portfolio in gold is enough.
Otherwise they can't deceive and steal from you if they don't have access to your money...
just in case
Just in case of what I wonder...?
quote:
Jeffrey Christian, managing director of CPM Group in New York, predicts gold will be around $850 an ounce at year-end, though he expects it will hit a new high along the way. He expects the recession should be ending by then, so stocks and bonds will look more attractive, interest rates might start rising, and the case for gold will be less compelling.
$850 an ounce at year-end
Maybe, maybe not. Probably not.
These are false and intentionally misleading lines of bull$hit, designed to keep people away from gold and its anti-inflationary and wealth preserving values, thus steering them towards the lure of near future imaginary rewards.
quote:
"We haven't seen ordinary investors abandon gold by a long shot, because whenever the market is doing poorly, people have a 'death-bed conversion,' and their faith in gold is restored," he said.
And why is that...?
Because they should...
This next quote is from the site that publishes this Gartman Letter financial trading commentary.
You must be logged in to see this link.
quote:
Alberdon International
Alberdon International (established 1991and based in the City of London) is an expert products research firm providing value added trading commentary to dealing rooms worldwide. The chief executive is Donald L. Berman, B.S. Economics (Wharton); J.D. (Brooklyn Law School); LL.M. International Law (Cantab.). Mr. Berman has 27 years experience as a technical analyst and derivative products specialist. He has established and run derivative product operations for the Bank of Tokyo, Morgan Stanley, Carroll McEntee (HSBC/James Capel) and Donaldson Lufkin Jenrette. He has taught his technical trading methodologies to many successful fixed income and foreign exchange traders.
Alberdon International's clients include many of the world's leading banks, financial institutions, brokerage firms, hedge funds, pension funds, treasury departments, energy and agricultural trading companies.
Authorised and Regulated by the Financial Services Authority
Don't take advice from the people that caused the derivatives mess in the first place.
This guy is paid for shill, working for the world banking elite.
Don't fall for it.
If your a Seinfeld fan.
This is the time for,
Opposite George...
> |
 |
|
| |
Topic |
|
|
|
MSM article on gold as an inflation hedge
Forum Locked
