Comments on: Gold Price Climbs Back to $700/Ounce

By: Investing » Gold Price Climbs Back to $700/Ounce

Investing » Gold Price Climbs Back to $700/Ounce — Mon, 24 Sep 2007 10:45:41 +0000

[...] SadButTrue wrote an interesting post today onHere’s a quick excerptHowever, investing in gold doesn’t mean that intestors have to buy and hold the metal itself because of the liqudition problems. There are many alternativs such as mutual funds and ETFs to give investors the exposure to the precious … [...]

By: Sun

Sun — Tue, 11 Sep 2007 02:21:35 +0000

I agree with you that diversification isn’t just about return. It’s about maximizing return and minimizing risk as the same time. And what happened in the past doesn’t mean it will happen again in the future.
However, history is all we have right now and we can get a sense what future may look like under various assumption. If we believe the economy will continue to grow even at 3% annually, 80 years from now, S&P can
only get much, much higher. Predicting short-term result is difficult, but for the long-term, it’s relatively easier.

As for gold, I still feel it’s a good diversifier because of it’s weak correlation with the broad market (however, if investing through mutual funds, the correlation is not that weak anymore. In that sense, gold ETFs may be a better choice) and the demand for gold is still there especially in the developing countries. Unfortunately, gold can never be really consumed. As production continues, there will be more and more gold on the market. But gold still has its appeals to many people and they will hold it for a long, long time. And that could create opportunities to have gold in the portfolio.

Just a thought.

By: Personal finance at KMull.com

Personal finance at KMull.com — Mon, 10 Sep 2007 12:20:28 +0000

[...] The Sun’s Financial Diary – Gold Climbs Back to $700/ounce [...]

By: Liz

Liz — Mon, 10 Sep 2007 07:12:57 +0000

In my view, diversification isn’t only about big returns, it is also about security. A fallacy in the world of finance is assuming that previous returns can be used to predict future returns. They can’t be. Great that the S&P has gone up up up over the past 80 years. That doesn’t mean that it will keep going up for the next 80 years. There is no way to know.
Not to be a downer : )

By: The Sunday Review #37: People Who Lick Their Fingers Before Turning Pages Edition

Mon, 10 Sep 2007 03:50:26 +0000

[...] Gold Price Climbs Back to $700/Ounce by Sun @ The Sun’s Financial Diary. However, investing in gold doesn’t mean that investors have to buy and hold the metal itself because of the liquidation problems. [...]

By: Roundup for week of 2 September 2007: Black loupe edition at Mighty Bargain Hunter

Sun, 09 Sep 2007 05:48:29 +0000

[...] The Sun’s Financial Diary’s is watching gold go up. [...]

By: Roundup for week of 2 September 2007: Black loupe edition at Mighty Bargain Hunter

Sun, 09 Sep 2007 05:48:29 +0000

[...] The Sun’s Financial Diary’s is watching gold go up. [...]

By: Roundup for week of 2 September 2007: Black loupe edition at Mighty Bargain Hunter

Sun, 09 Sep 2007 05:48:29 +0000

[...] The Sun’s Financial Diary’s is watching gold go up. [...]

By: NIdhi

NIdhi — Sat, 08 Sep 2007 16:39:26 +0000

very good website. Lots of good info and personal stories. I have added a link from my website.

Nidhi

http://creating-wealth.blogspot.com/

By: Friday Finance Findings For September 7th : Generation X Finance

Friday Finance Findings For September 7th : Generation X Finance — Fri, 07 Sep 2007 21:01:46 +0000

[...] Gold Prices Climb Back to $700 an Ounce – The Sun examines the history and trend of gold prices, which could be a decent hedge against this volatile stock market. [...]