Now that the stock market seems to be swooning again, we are being treated to the worried questions by radio news anchors this morning. “As the market declines, what about gold?” they ask their guru du jour.
And he immediately launches into all the reasons you shouldn’t buy gold and why gold is not a good investment. He has talked about stocks, bonds, the shaky international economies, especially France and Germany, long-term investing, etc., etc.
But gold simply wasn’t on his radar screen for talking points. So he mumbled out the usual reasons – the ones you hear and see and read everywhere. Here is what Lewis Altfest said in a recent WSJ article, The case for and against gold.
Fundamentally, the problem of gold as a portfolio investment is that it isn’t a real investment. Real investments are stocks, bonds, income-producing real estate and private businesses, all of which, except for bonds (which produce interest instead), produce profits. These are paid out as income in the form of dividends or are reinvested and grow.
Meanwhile, the people who bought gold some time ago are cackling with glee as it hits higher and higher peaks these days. Glenn Beck fans are chortling in delight as today’s price approaches $1800 an ounce. One of his major sponsors is Goldline, a gold dealer.
IFO leaves it to the reader to decide whether, when and how to buy the metal, she just reminds you that when everyone is going one way, it’s probably time to turn around and go back the other way. Do check www.kitco.com before you do anything though.
But how does this relate to Libertarian hero Ron Paul, 12-term Texas Republican Congressman in the U.S. House, who came in second in the Iowa poll a couple of days ago? Jon Stewart knows. Boiling it down and removing the humor, we can say that commentators with an agenda MUST ignore Paul. His support is not ginned up by them, his message is principled and consistent, and worst of all, he is a threat to the Republican Party, or, if you are a Democrat, he’s a threat to the two-party system.
Still, the two videos in the linked article are just plain fun, except where Paul says, “We have to stop being an Empire and go back to being a Republic!”
Students of the History of the Roman Empire will have the same reaction IFO did. *SHUDDER* and *SIGH*
Picks herself up, dusts herself off, smiles and starts walking forward again.