Comments on: Triumph of gold, the anti-investment http://blogs.reuters.com/james-saft/2011/04/21/triumph-of-gold-the-anti-investment/ Tue, 24 Mar 2015 16:54:45 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: here http://blogs.reuters.com/james-saft/2011/04/21/triumph-of-gold-the-anti-investment/comment-page-1/#comment-2940 Wed, 01 Oct 2014 16:31:46 +0000 http://blogs.reuters.com/jim-saft/?p=398#comment-2940 Thanks , I have recently been looking for info about this topic for a long time and yours is the greatest I’ve found out so far. However, what about the conclusion? Are you positive in regards to the supply?

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By: txgadfly http://blogs.reuters.com/james-saft/2011/04/21/triumph-of-gold-the-anti-investment/comment-page-1/#comment-626 Wed, 27 Apr 2011 02:24:29 +0000 http://blogs.reuters.com/jim-saft/?p=398#comment-626 Physical gold is insurance against corrupt organizations, both Governmental and Business. All it takes to be robbed is for the investor to trust in Government keeping its promises and being certain that private individuals do too.

Unfortunately, Government not only lets private organizations defraud stakeholders, it helps itself to earned wealth through fraudulent money and equally fraudulent capital gains taxes. All it takes is a single corrupt individual to destroy a lifetime’s savings. And America seems to have more crooked powerful people than honest ones. And it puts no value on keeping its word, at least its own people.

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By: Trooth http://blogs.reuters.com/james-saft/2011/04/21/triumph-of-gold-the-anti-investment/comment-page-1/#comment-624 Tue, 26 Apr 2011 19:25:48 +0000 http://blogs.reuters.com/jim-saft/?p=398#comment-624 Gold over the long term is a very bad investment. It is only good during times of inflation. All of the money being put into gold would be better served in real estate where the prices are very low and over the long term will once again rise. A house or land is a better asset than gold in my opinion. If they are worried about anarchy why not buy millions of gallons of water and dry foods instead?

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By: SanPa http://blogs.reuters.com/james-saft/2011/04/21/triumph-of-gold-the-anti-investment/comment-page-1/#comment-620 Mon, 25 Apr 2011 13:27:23 +0000 http://blogs.reuters.com/jim-saft/?p=398#comment-620 Gov. Perry has been hinting at secession for a while. There’s no secret that he wants no part of Washington’s dictates on pollution and food safety, nor healthcare, nor the impact of national debt on the fortunes of Houston’s oil barons. Perhaps the University is preparing in case the state makes good on the governor’s musings.

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By: threeRivers http://blogs.reuters.com/james-saft/2011/04/21/triumph-of-gold-the-anti-investment/comment-page-1/#comment-617 Sat, 23 Apr 2011 13:35:19 +0000 http://blogs.reuters.com/jim-saft/?p=398#comment-617 I agree with the idea of putting savings into real assets. Too bad some of these funds are so big they cannot buy into the pro-investment investments unless there is a dark pool for them to hide in. For the rest of us, there are still plenty of opportunities for sure.

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By: Tim1776 http://blogs.reuters.com/james-saft/2011/04/21/triumph-of-gold-the-anti-investment/comment-page-1/#comment-616 Fri, 22 Apr 2011 20:09:35 +0000 http://blogs.reuters.com/jim-saft/?p=398#comment-616 Stocks and gold are not necessarily opposed as investments, nor is one intrinsically a malinvestment while the other isn’t. For example, buying gold mining stocks is a simultaneously an investment in stocks and gold.

Stocks can be a malinvestment if purchased as a hedge against inflation, the reasoning being that even if a fiat currency were to become worthless, then at least the physical assets of a corporation would retain some of their value. This is true, stocks do perform better than fiat currency under inflationary conditions. For example, during the hyperinflationary period of the 1920’s, the German stock market only lost 80% of its value relative to gold.

So, if you’re going to make a malinvestment while waiting for the government to stop monkeying around with the economy, then it’s worth noting that some types of malinvestment are less bad than others.

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By: Tim1776 http://blogs.reuters.com/james-saft/2011/04/21/triumph-of-gold-the-anti-investment/comment-page-1/#comment-614 Fri, 22 Apr 2011 16:30:47 +0000 http://blogs.reuters.com/jim-saft/?p=398#comment-614 The diversion of investment funds into gold is just one instance of malinvestment, but it isn’t an “anti-investment” in any destructive or sociopathic sense as Mr. Saft seems to imply.

When the Federal Reserve lowers interest rates below the natural rate of interest, then that puts in motion a broad distortion in the allocation of capital. Under such inflationary conditions it becomes prudent to make malinvestments, not as a way of profiting, but simply as a way of losing less relative to other options available.

Another example of malinvestment is the diversion of investment money into the building up of excess inventories as a hedge against rising prices. Or buying houses for resale during a credit expansion boom.

The long term solution to the whole problem of malinvestment is the remonetization of gold.

Gold, then, is a profoundly optimistic and inspiring investment.

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By: DMon707 http://blogs.reuters.com/james-saft/2011/04/21/triumph-of-gold-the-anti-investment/comment-page-1/#comment-613 Fri, 22 Apr 2011 11:14:02 +0000 http://blogs.reuters.com/jim-saft/?p=398#comment-613 Gold is the anti-fiat currency, but not the anti-investment. It is the ultimate commodity investment. Does anyone think that high oil, grain and meat prices are just a blip? Please consider the macro view: rising world population, rising middle classes in developing countries, climate change, dwindling resources, declining real wages in developed countries.

Many countries are actually borrowing money (or printing it) just to subsidize commodity prices for their hungry masses. Money supply, asset prices and debt have skyrocketed worldwide since 1971, when the world abandoned the gold standard.

Gold is etched in the human psyche by ages of evolution. It doesn’t spoil or even corrode. It’s fungible and easy to store. It is as precious and beautiful as fine art, but indestructible.

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By: Missinginaction http://blogs.reuters.com/james-saft/2011/04/21/triumph-of-gold-the-anti-investment/comment-page-1/#comment-612 Fri, 22 Apr 2011 10:56:48 +0000 http://blogs.reuters.com/jim-saft/?p=398#comment-612 Why all the wailing in the comments section over 5% of the endowments assets? It’s a hedge, and given the bias of the Federal Reserve and Treasury for money creation (stimulus and especially “quanitative easing”) who can blame those Texans for doing a little hedging?

In the meantime I see no comments on James’ observation regarding purchasing stocks. Bravo for that one Mr. Saft.

Does anyone ever consider what happens when our Federal Reserve is forced to abandon it’s ZIRP (zero interest rate policy)? How do we measure and service our debt when rates rise as they must?

When QE ends, THEN Ralphooo, then we might see some people ascend that clock tower. Thanks for mentioning that. You reminded me of a classic obscure song written by the late Harry Chapin.

MIA

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By: Ralphooo http://blogs.reuters.com/james-saft/2011/04/21/triumph-of-gold-the-anti-investment/comment-page-1/#comment-611 Fri, 22 Apr 2011 02:04:43 +0000 http://blogs.reuters.com/jim-saft/?p=398#comment-611 If this demented plan goes through at today’s closing price, U of Texas will be taking delivery of approximately 22.8 tons of .9995 pure gold, a cubic meter of soft yellow metal. What do the trustees imagine they are going to do with their massively useless, totally immovable ingot of shame?

Probably they will decide to melt and coin it into 666,666 eagle-stamped American Krugerrands (seriously, do the math). John Ashcroft, in celebration, will then lend his best avian screech to a final chorus of “Let the Eagle Soar, Like It’s Never Soared Before.”

In this fever dream, Texas keeps on paying football players and department heads, passing out swarms of buttery gold coins to grateful loyalists, just as if the Great Crash of 2012 had never taken place. The drama unfolds on an Alamo-themed dystopian future campus, defended by a nest of patriotic snipers perched atop UT’s famously lethal clock tower.

Without question, one of the stupidest ideas I have ever heard.

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