Re:Bitcoin exchange rate reached $100 USD per BTC
by aneth4 on Monday April 01, 2013 @09:32PM
(#5477169)
I am saying gold is better than commodities. I'm saying gold is not a "piss poor" investment, as it holds its buying power quite well. That is the function of a conservative investment.
Re:Bitcoin exchange rate reached $100 USD per BTC
by dragontamer on Tuesday April 02, 2013 @01:57AM
(#5477901)
The S&P 500 (which you can easily buy with Vanguard Mutual Funds or SPY ETFs) has approximately the same volatility index as Gold right now.
http://finance.yahoo.com/q?s=^VIX http://finance.yahoo.com/q?s=^GVZ
VIX for the S&P 500 is 13.58, while Gold VIX is 13.13. Stocks are both holding their buying power as well as Gold, and still offering better returns right now.
Gold's "stability" is a myth. It is no more stable than any other investment. Bonds offer a conservative, stable investment platform. Gold does not.
After all, Gold reached a glorious bubble of inflation-adjusted $2200+ / ounce in 1970s, and has fallen since then. (yes, even with today's inflated prices, Gold is no where near its inflation-adjusted high).
Lets take a more reasonable graph of Gold, ehh? Something longer term... and see what happens to your trend.
http://www.macrotrends.org/1437/gold-to-s-p-500-ratio
Gold's trend is downward compared to the majority of the market. Each valley is lower, and each peak is lower than the last (with exception of stagflation period in the 70s)