The value of gold depends on a lot of things, but heap leaching technology does tend to limit the upside. Silver, because it is still to some extent actually consumed and necessary for many industrial processes, and also because the inventories really do seem depleted, might make a better hedge. Oil is a valuable material substance.
The only thing supporting the dollar is American military preeminence and willingness to use military force from time to time. Economic behavior of the US (dependence on foreign oil, continuing huge trade deficits) would long since have destroyed any currency not enforced by sheer power.
Anything one says about any high-multiple stocks is no more than wild and irresonsible speculation, either on the upside or the downside. Insanity on the upside and reality on the downside have claims that make predictions foolish--except that reality, in the end, will win. Anything with a P/E of 547 cannot be seriously discussed as an investment. Only as a topic of self-assured gossip.
Dollar-denominated bank savings accounts (or Euros, if one wishes to speculate a little) ought to reflect inflation, though probably only enough to cushion losses rather than make profits.
Stocks are still very far from being any kind of investment, on the whole, except for precious metals and oils--and they may be dragged down to perdition with everything else, at least at first. |
