You want to buy Gold???
And I’ve seen people advocating buying gold on this board. You buy gold when there is world-wide inflation. When the prices of commodities are rising because there is too much currency around and the value of the currency is falling. When you can’t buy as much (gold, bread, smartphones, etc.) with your cash as before.
However, the problem the world is having now is the danger of deflation. Governments can’t get inflation up even to the goal of 2%. And they are trying! In Europe and Japan there has actually been some deflation (prices falling). That’s the result of not enough cash, and not enough spending (by consumers and by governments). It’s the result of “austerity” in Europe. Is a time of deflation, and of absence of inflation, a time to buy gold? Really? But I’m looking at it just from a fundamental point of view and from a common sense point of view. I’m sure that that is trumped for some people by the “little squiggly lines” on a chart.
The only reason to buy gold now is if you are worried about the end of civilization as we know it, in which case it probably won’t matter what you are investing in, and it will be pretty hard to buy bread with those shares of a gold ETF.
Gold, by the way, is up all of 0.7% since the stock market bottomed on Feb 11.
Gold is down 34% since its peak in 2011. That’s a bunch.
This is a low-growth, low-inflation, falling commodity price environment. There’s a good reason that gold is down 34% in less than five years. Deflation is a heck of a lot more worrisome right now than inflation. Think about your favorite stock, growing nicely every quarter in spite of this slow growth environment. Now, which do you think is likely to do better in the in next year, gold or that favorite stock? No guarantees, but more likely.