Stk Mkt: "Gold, Long a Secure Investment, Loses Its Luster"
Chart: IAU ( Yahoo Finance )
Below the streets of Lower Manhattan, in the vault of the Federal Reserve Bank of New York, the worlds largest trove of gold half a million bars has lost about $75 billion of its value. In Fort Knox, Ky., at the United States Bullion Depository, the damage totals $50 billion.
Falling Fortunes The price of gold has had an extraordinary run up in the last 10 years, creating wealth for investors. But its price has fallen in the last two years.
And in Pocatello, Idaho, the tiny golden treasure of Jon Norstog has dwindled, too. A $29,000 investment that Mr. Norstog made in 2011 is now worth about $17,000, a loss of 42 percent.
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Been saying it for 4 years...Gold is the latest "bubble" investment that replaced real estate.
It can be argued that outside of bubbles and the financialization of the US economy that the US has not seen any real growth in over 15 years.
And don't get me started on real income growth for the majority of workers.
Ironically, while the future of gold no longer glitters, the real estate market has been recovering.
I think that up until now most of us probably haven't been-- but in light of recent developments...perhaps we should reconsider?????
Actually that is true.
The secret is to get in early, before everyone else, when prices are still low. And then-- get out at the top, when prices are highest! (Of course that's easier said then done!
). In fact, most people tend to buy high-- and sell low!
Ah-- had we only listened to you!
Yup. Regular participation on The Newstalkers tends to have that effect-- and is highly recommended!
Truth is, why should gold be immune from market crashes and plunges when nothing else is? I have never understood that! I don't pretend to have any of the expertise you have, but simply based on observations of the past several years. When prices soar into the bubble we have seen across the board before the crisis, there has to come a time for the "POP"!