gold, page-1141

Skol, there are charlatans everywhere not just in gold. Gold is going to reach $10,000, but its going to take decades or a huge financial apocalypse. Thats an outrageous target for the short or medium term.

But I think you have the entirely wrong conception of gold. If your entire trading strategy revolves around going long on property and equities you would leave yourself exposed during times when they do not do well, and miss out on gains on the short side. That is what gold is to most traders - its just a trade. There are times when holding gold/gold miners makes no sense, just as there are times when shorting is silly. All financial assets are cyclical.

I do agree that buying physical gold is unwise. The buy/sell spreads are huge, there are insurance or storage costs, pays no dividends, and in a real apocalypse is unlikely to be useful as currency. But established gold miners DO pay dividends, DO provide capital appreciation and are well leveraged to gold prices. Picking the right one makes for a good short, medium or long term trade depending on the circumstances. Look at market darling NST for instance. There are obviously those gold bugs who hold all their assets in physical gold, I do think they are delusional, but buying gold bricks is not what most on here mean when they say they are going long on gold.