A Bad Time to Put the Knock on Gold?
Source: GoldSeek, Rick Ackerman (10/5/09)
". . .there are almost no losers in gold right now"
We wonder how far back Kansas intended to take us when he wrote that gold is "still" a lousy investment. The Kitco chart above shows that you'd have to go back more than a decade, to the mid-1990s, to find a time when holders of bullion assets could have lost serious money. Since then, however, anyone who has bought gold would have nothing to complain about. Far from it, since investors aboard early in the bull market could easily have doubled or even tripled their initial stake. Moreover, there are almost no losers in gold right now, since bullion's price was higher than the current $1003 for only a few weeks back in March of 2008. Maybe that's when Kansas took the plunge?
So what does he recommend as an alternative? TIPS—Treasury inflation-protected securities. He notes that gold investments were "dead money" for decades, but that it's highly unlikely TIPS would suffer the same fate.
Spuriously, he traces gold's ups and downs over the last 40 years, concluding that although "investing in gold may sound simple. . .it's anything but." If Kansas has a simpler way for investors to hedge the risks of a global economic collapse that seems almost unavoidable, we'd be interested in hearing about it. Meanwhile, putting the knock on gold as it consolidates near $1,000 is the worst investment advice we've heard since we last heard from Abbe Cohen and Larry Kudlow.