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Ed
Guest
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 Posted:
Wed Oct 26, 2005 12:01 am Post subject:
Re: Bush nominates Bernanke |
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"Joe" <lda_vinci@yahoo.com> wrote in message
news:Ylr7f.19809$E17.19030@fe03.lga...
| Quote: | Neill Massello wrote:
Hold on to your gold. It's going to be a bumpy ride.
Speaking of gold, could any of you suggest funds that invest in golds and
other natural mineral?
Thanks,
J
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CEF - Central Fund of Canada
Approx. 55% gold bullion and 45% silver bullion.
GGN - Gabelli Global Gold and Natural Resources
Metals and mining 53%
Energy and utilities 35%
The rest in US debt.
Regular open-end funds:
http://biz.yahoo.com/p/tops/sp.html
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Herb
Guest
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| Posted:
Wed Oct 26, 2005 5:49 am Post subject:
Re: Bush nominates Bernanke |
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"Mike Stone" <mikews@gmail.com> wrote in message
news:Mcu7f.157529$lI5.145703@tornado.ohiordc.rr.com...
| Quote: | Herb <XXX@yyy.com> wrote:
I guess I didn't make my point clearly. The price of gold rising IS
inflation. I realize that gold doesn't play as much of a monetary role
as
it used to but it still largely reflects the value of money. Under
classical economic theory, the price of gold is fixed. It is the price
of
money that fluctuates.
I can't believe you think the CPI and PPI are "real" numbers but the
price
of gold (determined, as it is, by a relatively free market) is not.
Like
the unemployment rate, inflation indices are quite debatable and are
only of
use compared to themselves over time. Few think they really measure
inflation, they are just the best guesses that we have.
Hey Herb,
Question for you. I bought into gold a while back and have been happy
with the
return so far.
Isn't this all just psychological? I mean, the *real* demand for Gold has
increased
somewhat due to India & China's rising middle class but on a whole, the
real demand
is driven by:
- inflation worries
- fear of a dollar crash
- fear of an equities crash
It's certainly not driven by real fundamentals they way other commodities
are. |
Mike:
I am no expert on the gold markets but I don't mind speculating ;-).
It seems to me that gold has two characters (unlike most other commodities).
Some people hold it as a store of wealth that tends to hold its value versus
currency. I have to think that a lot of people in the Third World use it
because of past instabilities in their local currency. These are largely
psychological (as are the factors you cited) which make gold more volatile.
There is, however, a fundamental aspect as well in that gold is "used up" at
a certain rate as products are made from it (Jewelry, electronics, gold leaf
e.g.) and is produced by mining companies every day.
A wild card in all this is the vast stocks of gold held by central banks
largely left over from olden times (pre Breton Woods) when countries would
actually exchange gold to deal with currency imbalances. It seems that,
every now and then, I hear about some central bank selling off large
quantities of gold.
Although I am a buy and hold investor, I maintain a certain percentage of my
portfolio in gold as a means of diversifying. Because it is so volatile, I
am often required to buy or sell to maintain the correct proportion. As
this means I am buying when gold is going down and selling when it is rising
I have to think that I am making a better return than simply holding gold
over time which, the last I looked, wasn't all that impressive in terms of
total return.
-herb |
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rono
Guest
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| Posted:
Wed Oct 26, 2005 4:00 pm Post subject:
Re: Bush nominates Bernanke |
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Hi J,
What you want is possibly a Precious Metals fund such as Rydex RYPMX or
Vanguard VGPMX. The latter actually contains some other minerals.
Another approach would be to just buy a broad based natural resource
fund that contains precious metals, oil, timber, coal, etc. Examples
are RS Global Nat Res RSNRX, Price New Era PRNEX and US Global PSPFX.
best,
rono
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rono
Guest
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| Posted:
Wed Oct 26, 2005 4:00 pm Post subject:
Re: Bush nominates Bernanke |
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Hi J,
What you want is possibly a Precious Metals fund such as Rydex RYPMX or
Vanguard VGPMX. The latter actually contains some other minerals.
Another approach would be to just buy a broad based natural resource
fund that contains precious metals, oil, timber, coal, etc. Examples
are RS Global Nat Res RSNRX, Price New Era PRNEX and US Global PSPFX.
best,
rono |
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