No. of Recommendations: 17
CNBC had a throwback bit today claiming SPDR Gold (GLD) shares are up 442% over the past 20 years. I haven't checked the math. My point was not that gold is a great investment, only that demand may not be sated.
Demand goes up, demand goes down. Greed goes up, greed goes down.
My original comment was a bit longer term. You can get a nice set of gentleman's clothes for an ounce of gold, as you could on average in almost any of the last 25 centuries. The current position in the current cycle isn't really the point--gold has, quite impressively, held its real purchasing power on average over very long intervals, if you squint a bit.
And, by extension, it hasn't gone up in value.
There may be a squiggle up soon, or a squiggle down, but there is no particular reason to think that the purchasing power will go up on trend.
Jim
