Back in September 2009, there was a day where Google hit $500 a share, having recovered from the bottom of the market price of $280 and Gold hit $1,000 an ounce.
Well its been about 18 months later and we posted about Google announcement of earnings yesterday and a reader reminded me about the Google Vs. Gold post so thought it would be a good time for an update.
So Google is trading today at $540 a share which is up 8% from $500 a share.
Gold on the other hand is up to just shy of $1,500 making it up 50%.
The poll resulted in a split decision with just as many people picking Google as Gold.
Personally I picked Google but didn’t buy any.
Shortly thereafter I bought some Silver (SLV) and Gold (GLD) EFT and continue to hold them.
Google in all fairness was trading in the $620 just a few weeks ago which would have put it over 20% return but Gold march higher has been steady and with Congress now facing raising the nations debt limit past $14 Trillion, I think I holding on to my Gold and Silver.
3Digital.TV says
there’s anyone who has gold ingots that wants to exchange his gold with Google shares? 🙂 🙂 🙂
Good Domain Names says
If thins continue like this I may actually make some use of GoldDollar.net
freeoptionpicks says
Hi Mike, great comparative study. I too have been holding gold and silver but it is in a totally different form. I have been buying the physical bars and coins for years. It is true that it cant be eaten or planted in the ground but I suggest you sell your ETFS and start getting some physical. Those ETFs represent options and futures contracts on the physical. The ETF issuers SPDR and iShares etc do not own an ounce of physical because they trade the contracts and never accept delivery. There will come a time when that paper will be worth nothing because the physical ounces that they are supposed to represent simply wont exist. Looks like you are deep in the green on SLV and GLD and thats very good but try picking up a few coins and bars. Stash them at home in your safe place.
RP says
Thanks for updating.
Try PSLV instead of SLV. Also CEF (gold and silver). Both those hold physical instead of the paper. Once rates start going up metals will most likely get slammed so best to have tight stops in.
As far as the miners, I am cautious because of expropriation. Peru, Bolivia, etc have contracts selling @ $4/ounce – if leftist govts take hold they might start nationalizing.
Premium domains and precious metals are great investments with our currency being debased, and at some point in the near to intermediate future shorting treasuries will be a great play.
Good Domain Names says
Btw, mygold.com.cn recently sold for $3,000
LS Morgan says
Metals are on a retard monkey tear right now, the cab driver, the butcher and the baker are all in, the permabears are having their day in the sun… *Every* mania signal is in place and blinking like a gigantic neon sign, but one does have to wonder if it isn’t a legitimate paradigm shift in commodities and metals prices given what’s going on with inflation.
People always lampoon the “this time, it’s different” sentiment that runs heavy in every bubble but sometimes, it really *is* different.
Another blog mentioned someone bought goldETF.com for like $2K. That was just such a huge bargain.
LS Morgan says
The ETF issuers SPDR and iShares etc do not own an ounce of physical because they trade the contracts and never accept delivery.
—-
Is it possible to be more than 100% wrong?
iShares SLV has like 350mm ounces of physical held in the trust.
RP says
SLV does hold some silver but it does not appear that they have enough to cover all shares outstanding or a real run on silver if COMEX deliveries are not able to be met. SLV is good to trade but not long term investment. History of silver manipulation makes silver derivative and/or ETF positions a poor long term investment, read up on Hunt Brothers 1970’s and current Bear Stearns/JPM short position. This is just a massive squeeze that will end up screwing over as many paper investors as possible.
And I doubt this time is different, we have had a 0% interest rate policy for too long and cheap fed money to the primary dealers is causing a historic bubble in commodities. At some point interest rates are going to go back up and when they do it is going to be difficult to control. It is unlikely that commodities and equities will be able to continue to outperform with rising rates.
Premium domain names, primarily .com, will go up regardless as they are all unique in themselves depending upon the keywords, unlike any commodity.
Mark Jeftovic says
@LS Morgan Actually, exposure to precious metals is still miniscule. Sprott released a report recently putting overall investment exposure to gold (including ETFs) at 0.8%
During previous gold highs, when gold peaked total investment exposure levels were in the 25% – 30% ballparks (going from memory, I don’t even have the URL handy, but it was cited in Marc Faber’s most recent GloomBoomDoom).
Bubbles typically pop when they quite literally run out of buyers. There has been no “buying panic” to get into gold. As I have remarked frequently: gold pullbacks are presently declared to be “tops” – when that turns over, and they are referred to as “buying opportunities” in the mainstream media and by pundits, then we’re wise to sniff a top.
We’re still in a secular bull market in gold and silver, having said that, silver especially is pretty overbought right now. (Although Dave Skarica has pointed out that the premium on gold funds like Central Exchange Fund are still quite low and below previous interim tops).