Gold & silver, or precious metals (PM) as they are referred to in the investing community, are a kind of commodity. Physical commodity investing is not usually done as a long term investment. This is because a commodity has no value besides its intrinsic value. It will never increase in quantity nor quality as an investment or product, unlike stock ownership in a company where the corporate earnings can potentially increase with time.
So why am I investing in such stupid and “boring” investments? Because, on an inflation-adjusted basis, gold needs to exceed $2090 in 2006 dollar to overcome its 1980 peak.
Continue Reading 21 comments Friday, Aug. 4, 2006
by Nathan
