Why Gold Sucks
And now, for something *completely* different.
I would like to share with you my investment opinion on Gold and Gold-related assets. Seeing how expensive my research was, I believe my analysis should have at least some validity. To summarize:
Gold Sucks.
Even though I titled this rant "Why Gold Sucks", I really don't know why gold sucks. It just does. It sits there all day, sucking. Yesterday is stopped sucking for, oh, about 4 hours, and then it sucked again. Before that, it sucked for 20 years. Back then, there was a month or two when it didn't suck. It has sucked ever since.
I hate to tell you this, but it will suck forever more.
Like I said, I don't know why gold sucks. There are people who think it's a grand conspiracy between the Illuminati, the Queen of England, and Little Green Men from Tau Ceti. Could be. Could be.
There are people who talk incessantly about lease rates, safe-haven buying, the dollar-euro exchange rate, producer forward hedging, speculative short versus commercial long positions, Aussies versus Rands, and the Illuminati versus Little Green Men from Tau Ceti.
Forget about it, boys. Gold sucks. Period. That's all you need to know. End of story.
You'd think that, if there ever was a time for gold *not* to suck, it would be now. I felt a good deal of guilt on Sept 12th to realize that my portfolio was 60% cash and 40% in ABX, NEM, and PDG. Jeez, I thought, all these people dead and I'm gonna make a profit on it. I should give some of it to charity when the markets open.
Well, the markets did open, and - you guessed it - gold sucked. It just lay there, like a dead fish, not even managing to open its mouth to do some sucking.
The best investment advice I ever got was from an old technician who told me: "The only thing that's real is Price and Volume. You can't argue with that. Everything else is opinion."
Well, we have a blah Price and zero Volume. Yessiree Bob, Gold Sucks.
Now, you may have a contrary opinion. Usually, these contrary opinions start with an "IF" and end with an exclamation point or two, like this:
"If there is an attack on Britain or the U.S, then prices could rocket!!" (Actual quote from today.)
Yeah, yeah, yeah - Now repeat after me: Gold Sucks. Gold Sucks, Gold Sucks.
Better yet, go to your bookcase and take out a particularly large tome - an Atlas of the World will do fine. Then turn down the lights and walk in a circle, repeating "Gold Sucks, Gold Sucks". Each time you say "Gold Sucks", hit your forehead with the book, like this:
Gold Sucks... <WHACK>... Gold Sucks... <WHACK>... Gold Sucks... <WHACK>... Gold Sucks... <WHACK>... ... ...
-MB |
