YTD Gold performance versus SPX

[quickfeet]

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Gold has held it's value in dollar price during (even had a nice price spike in March that it pulled back from) the last 6 months, but has not tracked inflation. You would have done just as well holding cash during since the beginning of the year, but even though someone would feel good for doing either, you are still getting annihilated by inflation.

Are we going to see an actual rise in prices over the next few months or is gold a meme at this point?

 

[ChicagoFats]

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Gold has held it's value in dollar price during (even had a nice price spike in March that it pulled back from) the last 6 months, but has not tracked inflation. You would have done just as well holding cash during since the beginning of the year, but even though someone would feel good for doing either, you are still getting annihilated by inflation.

Are we going to see an actual rise in prices over the next few months or is gold a meme at this point?

Gold has not really been a good investment over the long term. The S&P has crushed gold over the long term i'm fairly confident. I continue to expect below average returns for gold.

If it didn't perform as an inflation hedge, and made only a modest spike during covid .... im not sure its ever going to be that stellar investment. Maybe one day when the dollar eventually collapses, but that day is probably a long way off despite the fact the country is a dumpster fire right now.

 

[dirtytoeddawg]

Gold has not really been a good investment over the long term. The S&P has crushed gold over the long term i'm fairly confident. I continue to expect below average returns for gold.

If it didn't perform as an inflation hedge, and made only a modest spike during covid .... im not sure its ever going to be that stellar investment. Maybe one day when the dollar eventually collapses, but that day is probably a long way off despite the fact the country is a dumpster fire right now.

The fact that gold/silver haven't been moving in the face of inflation has been something I've been asking over the last few years and don't quite get. Were gold/silver manipulated into artificially high prices prior to inflation setting in? Why is it not following a typical movement to the upside in the face of inflation & uncertainty?

 

[ChicagoFats]

The fact that gold/silver haven't been moving in the face of inflation has been something I've been asking over the last few years and don't quite get. Were gold/silver manipulated into artificially high prices prior to inflation setting in? Why is it not following a typical movement to the upside in the face of inflation & uncertainty?

Good questions. With all the free money out there people were putting their money in riskier assets i guess?

 

[BurntJ]

The fact that gold/silver haven't been moving in the face of inflation has been something I've been asking over the last few years and don't quite get. Were gold/silver manipulated into artificially high prices prior to inflation setting in? Why is it not following a typical movement to the upside in the face of inflation & uncertainty?

I have been watching this too and it makes zero sense.

 

[quickfeet]

The fact that gold/silver haven't been moving in the face of inflation has been something I've been asking over the last few years and don't quite get. Were gold/silver manipulated into artificially high prices prior to inflation setting in? Why is it not following a typical movement to the upside in the face of inflation & uncertainty?

I have been watching this too and it makes zero sense.

I had a family member that was a "gold bug" and I got caught up in the hype in the 2010s. Fortunately I moved on from that a couple years later before get crushed in opportunity costs. That time frame was fresh off of the mortgage crisis and there were many calls for "hyperinflation" and the "end of the petrodollar" (sounds familiar right).

But really this was the discussion I wanted to generate from the thread. And it kind of leads to this discussion that Fats brought up in another thread: What Really is an Inflation Hedge. I think in 5-10 years things like real estate and the total equity market will end of paying off, but in the meantime I guess you just have to take the punishment. It could just be the specific financial meltdown we are having. Looking back a year or so, the real play would have been to short short short the market over the last 12 months. I wonder what ever happened to @haros that was a day trader from tmb and how this has played out for him

As far as gold goes, this doesn't help the spot price either:

$12.8 Trillion In Gold Deposits Discovered In Uganda

Thirty-one million tonnes of gold deposits have been discovered in Uganda, estimated to be worth $12.8 trillion. Click now to read more!

gsiexchange.com