Reply #8: It depends on interest rates [View All]

If interest rates were to rise to a reasonable level for a saver, on secure accounts where you were able to get 2 percent over the discount rate plus inflation, you might want to lighten up. Otherwise I'd hold on as a hedge. Let's face it banks loaning money for long term mortgages at 6 percent or less fixed rates are going to lose their asses. If I can't get more than 6 percent on a secure investment there is no incentive to sell gold or real estate. The advantage of gold is that it isn't subject to ad valorem taxation as a store of value but it generally doesn't yield any income. Where are the better investments?

Gold is a hedge, if you're trading, it doesn't matter what you trade. Gold is going up, in part because savers are being penalized by the banking system. The current economic model is a hamster wheel. With a war time economy, gold is going up, unless interest rates are allowed to rise.