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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.22-0.2%Nov 21 4:00 PM EST

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To: average joe who wrote (66715)10/1/2010 6:16:46 PM
From: energyplay  Read Replies (2) of 217927
 
It is a very tough test for an investment vehicle to say it must be a good investment at all times over a 25 or 30 year period - a whole generation.

Look at something like the Blockbuster video rental store - created by technology - the VHS VCR - and then killed by newer technology of the internet and smart vending machines.

You can buy and hold for 5 or 10 years and do well, but you can't hold forever...

Even real estate has 14/28 year long cycles.

I had a tiny (really tiny) amount of gold in 1979, which I sold for around 600 per ounce.

You have to look an see if an investment is way above or way below it's long term trend before you buy or sell.

And even on a physical investment, you need to have some form of stop loss or hedging (some one buying at $800 could have bought some long term puts on gold mining stocks, or shorted a small amount of stock in the weaker names, like the promoted junior mining stocks)

You could also diversify (in 1979 -1980) by buying US treasury bonds, which at one time were yielding > 12 %
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