Quote:
Originally Posted by gregpark
But why are the precious metals appreciating so rapidly in all currencies? And why have all the central banks here and around the world been gobbling it up at unprecedented rates in the last few years? Isn't that an indicator that something is changing?
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The Fed has been printing dollars like Monopoly money for 5 years, devaluing the dollar heavily which is why gold is on a run. For 10 year returns gold has had a similar ROI to the S&P500 but if the dollar stabilizes, gold appreciation will grind to a halt while the US economy will still grow. I held gold through the 80s and 90s and it was flat as a pancake. Twenty years at $400/oz with zero appreciation, ugg. Gold is a store of value long term but does not produce anything. At it's core gold is currency speculation which can feed you or bite you.
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