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<p>[QUOTE=&quot;Morgan1878, post: 756036, member: 17869&quot;]In today&#039;s Jon Nadler article:</p><p><b><u>&quot; Newton Vindicated. Montgolfier Bros Puzzled &quot;</u></b> Dec 7th, Mr. Nadler selectively quoted only the portion of a Bloomberg article that supported his bearish point of view. </p><p><br /></p><p><i><b>Here is the quote he chose:</b></i></p><p><br /></p><p><span style="color: Red">“Gold’s best year in three decades has yet to match the returns of an interest-bearing checking account for anyone who bought the most malleable of metals coveted for at least 5,000 years during the last peak in January, 1980. Investors who paid $850 an ounce back then earned 44 percent as gold reached a record $1,226.56 on Dec. 3 in London.</span></p><p><span style="color: Red"><br /></span></p><p><span style="color: Red">The S&amp;P 500 stock index produced a 22-fold return with dividends reinvested, Treasuries rose 11-fold and cash in the average U.S. checking account rose at least 92 percent. On an inflation-adjusted basis, gold investors are still 79 percent away from getting their money back. “You give up a lot of return for the privilege of sleeping well at night,” said James Paulsen, who oversees about $375 billion as chief investment strategist at Wells Capital Management in Minneapolis. “If the world falls into an abyss, gold could be a store of value. There is some merit in that, but you can end up holding too much gold waiting for the world to end. From my experience, the world has not ended yet.”</span></p><p><br /></p><p><i><b>Here is another quote from the same article that he chose to leave out:</b></i></p><p><br /></p><p><span style="color: SeaGreen">“Gold is a useless asset to hold long term,” said Charles Morris, who manages more than $2 billion at HSBC Global Asset Management’s Absolute Return fund in London. “I’m not a gold bug who believes that you want to own this thing in your portfolio at all times. We should own it when the going is good, and the going right now is great.”</span></p><p><span style="color: SeaGreen"><br /></span></p><p><span style="color: SeaGreen">Those who bought gold when it reached a two-decade low of $251.95 in August 1999 have seen a 387 percent return, more than four times the 82 percent gain in Treasuries. An investment in the S&amp;P 500 lost 0.4 percent through the end of last month. Interest on checking accounts shrank to 0.14 percent this year from 0.89 percent in 1999.</span></p><p><span style="color: SeaGreen"><br /></span></p><p><span style="color: SeaGreen">Since the S&amp;P 500 peaked in October 2007, investors in the index lost 25 percent, holders of Treasuries made 16 percent and gold buyers are up 64 percent.</span>[/COLOR]</p><p><br /></p><p>If you read the Bloomberg article, there are arguments for and against investing in gold, but it is not the one-sided argument that Mr. Nadler would like you to believe. Here is the link to the entire Bloomberg article:</p><p><br /></p><p><a href="http://www.bloomberg.com/apps/news?pid=newsarchive&amp;sid=aIMzb9wGeAB8" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.bloomberg.com/apps/news?pid=newsarchive&amp;sid=aIMzb9wGeAB8" rel="nofollow">http://www.bloomberg.com/apps/news?pid=newsarchive&amp;sid=aIMzb9wGeAB8</a>[/QUOTE]</p><p><br /></p>

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