it's going down the toilet, page-40

ourlady,

Don't feel sorry for me buddy, my trading account's up 12.2% in 2013 - nice.

Here's something 2 days ago from Investing Decoded.

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Gold: It seems Soros was right

Back about a year ago (December 29th, 2011, to be precise) I recommended that investors follow George Soros out of Gold as it had become the worlds biggest asset bubble. For reasons outlined in numerous articles here on Investing: Decoded (including the recent article titled Fool's Gold), I have outlined why the world's first fiat currency is not a safe haven asset, why it won't be hedged to inflation and why the Federal Reserves monetary easing will not affect the price of gold at all.

Unfortunately investors still continue to jump on the bandwagon that's already over the cliff and starting to descent to the rocky canyon below. They are led by Gold bull Mark Faber, who insisted today on yahoo finance that Gold is an insurance policy on the next financial crisis.

This notion is false, as Gold holds very little intrinsic value, relative to other financial assets (Bonds, Stocks ect...) and Gold is simply priced based on what some other guy is willing to pay for it. Unlike stocks, gold produces no cash flow and produces no value to ones life (unlike other commodities like Wheat or Corn). When the Federal Reserve prints money, they don't buy and gold since we don't have a gold-backed dollar.

Gold bulls would argue that the Federal Reserves monetary easing leads to inflation, which leads to the rise in the price of Gold. This is false, as between 2002 and the spring of 2012, gold was up 220%, when inflation was only up 22%. If gold moved in lockstep with inflation, we would see gold drop well below $1,000 an ounce today!

I would continue to avoid Gold, no matter what type of investor you are, as it is as speculative an asset as a mortgage bond was in 2007.

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