It was just about three months ago today that gold first hit $1,000 a ounce and Google hit $500 a share on the same day, prompting us to write a post and asked you, which was a better buy.
We picked Google.
Today Google hit $600 a share.
Gold is trading at $1,137.50
So Google is up 20%, in the 3 months
Gold is up 11%.
The poll results were split equally.
We will continue to follow this as either one reaches a milestone.
.
there is no battle, since, someday, everything (including gold) will be a Google property… 🙁
.
Where was Google 2000 years ago?
Or
Where will Google be in 2000 years?
Caesar,
Where will YOU be in 2,000 years?
RS turned $120K into $3M+ in 7 years with Candy.com…
Tony,
Ever heard of the “British East India Company”. In market cap THE biggest company ever (although from 1600 to 1800 or so).
And there are many other examples.
Any living billionaires these days from that company? No, because at some point in history you get wars, fraudsters, nationalisation,… and you get wiped out.
If you own a million shares of Google today I would say you’re VERY RICH but I wouldn’t say you’re WEALTHY.
Gold is for passing WEALTH to future generations.
All the rest ie. stocks, domain flipping, whatever, do only well in peaceful, quiet times like the ones we are now living in.
Look, what you earn today is a borrowed promise backed by future generations. As long as the music keeps playing nobody feels the urge to get a chair. But when the music stops playing there will be 1 chair for every 100 persons dancing.
This post by Mike shows that he is interested in gold as an investment but he doesn’t understand it. Comparing the performance of gold to the performance of Google is just …plain stupid…(sorry Mike; hope you take no offense but that’s the way most gold interested people look at it).
Gold is not an investment, Google is.
Gold doesn’t go “up” in value. It is the currency it is priced in that goes down (the $ in this example).
And that should worry about just everyone.
C.
I think most people are buying Gold not
in the hope that it appreciates…
I know many people that are buying Gold in case
everything else tanks.
When everything else implodes, Gold is (and always will be)
a recognized currency around the globe.
Gold is hot right now because people are scared of
what the future holds.
– Aron
To add to Caesar’s comment, Gold can be interchanged as currency literally anywhere any time, not stocks. Gold serves different purpose and stocks a different purpose.
Aron,
Yes
Aron,
Yes a lot of people are buying into gold right now.
But I know few that are buying bullion.
Most buy in ETF’s which are bogus imo. They buy into trackers, derivatives, stocks,… paper gold.
Yes there are no stocks like gold stocks and when the mania kicks in many junior gold stocks will go x100 or even more, but picking the right one without “inside information” is hard and most will lose out.
Next to that I think this time will be much different then the gold mania of the 1980’s.
The 1980’s gold rush was caused by high inflation which was caused by Nixon’s decision to detach the dollar from gold in 1971. In 1971 he said to the creditors of the US. “You can no longer exchange your dollar trading surplus for gold, the dollar is as good as gold”.
Now fast forward 30 years and many trillions of dollars later.
The only thing that keeps the $ from collapsing is the fact that is THE reserve currency of the world.
But be sure that “old money” goes into 3 things: Real Estate, Gold & Art. This has always been the way. These 3 are for eternity.
The new billionaires today own stocks, even domains. These assets are only temporary.
Make sure you have a good mix of everything.
C.
True Ceasar. Then when the arabs finally detach oil from the dollar as the defacto support for the dollar all hell will break loose……unless we beat them to energy independence first or go start more wars to make sure the dollar stays the choice currence of trade.
Tim,
Personaly I wouldn’t give the arab nations much attention. The Dubai debacle shows that they have huge issues themselves.
In a world where the FED is talking about pumping billions and trillions into the “system” the wealth of Arab sjeiks is totaly irrelevant. It’s temporary and an illusion like so many things.
A lot of people talk about China being the next superpower and because it has huge dollar reserves it can pull the trigger at any moment if it wishes so.
Let me tell you this:
The $ is the currency of the people of the USA and the problem of EVERY other person on this planet.
Some people scaremonger by telling that the US public debt is xx trillion and the US is broke. I ackowledge that and that is a big problem for the people of the US. However that is even a much BIGGER problem for everyone else (China, Europe, Japan,…)
Let me give you an example.
If you buy a million dollar home with 500k down I’d say the biggest risks lays with the loan applicant. This is a moderate to/low risk for the bank.
If you buy the same million dollar home with only 10k down I’d say that the bank takes a HUGE risk.
And we see the results of this everyday (foreclosure,…)
The world has lend and keeps lending the US billions every day. So it’s safe to say that the biggest problem is for the creditors of the US
I think at some point in this crisis the US will (partialy) walk away from it’s debt obligations and install a new form of currency.
The system is broken and we need to push the reset button. They will push the reset button and hell will break loose (for a while) but I’m prety confident that the US will come out of it as FIRST and BEST.
best regards
C.