This guy doesn't like precious metals.

Here's an article in which the guy tries to talk us out of Precious metals:

http://www.livemint.com/Leisure/ppZ...d-And-Silver-A-Wealth-Hazard.html?facet=print

 

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Are they hazardous to your wealth?

 

Apparently.

 

Well he did attend the Indian Institute of Management, Ahmedabad, so he should be well versed in precious metals investing.

 

Yeah, a cogent, rational, and articulate article from a man with an engineering degree and a degree in business should be quickly dismissed if one doesn't agree with the conclusion.

What educational background does the self appointed PM prophets have? Anyone know? I will bet you an ounce of silver its less than I do.

But, it won't matter to "true believers", right?

 

The author brings up how precious metals don't pay dividends or interest. He fails to mention how precious metals maintain their purchasing power in the long run.

"Ultimately, the hoard that investors have accumulated has to be sold."
As does any asset.

"Shashank Khare is an investment professional and writer. After studying engineering at IIT-D and business administration at IIM-A, he entered the world of credit derivatives before CDS became a four-letter word."

Shashank needs the current system to last in order for him to maintain his standard of living. He works with credit derivatives! Don't you think he is probably the WORST person to listen to for investment advice arguing against precious metals? Also, I didn't know CDS was a four-lettered word. You learn something every day. GREAT ARTICLE.

 

Cool. More for me if he doesn't want any. And besides, obviously, putting all ones eggs in the same basket is dangerous as can be, no matter what that basket. I'd like to believe that most of us buy PMs in addition to many other well-diversified investments. I do. I'm not looking to put everything I have on red.

 

Agreed.

 

excellent catch, pretty clear this guy is just writing a propaganda piece.

I like how he quotes a Soros theory as a good reason to not buy gold and silver, when Soros himself invested a 100 million in gold not too long ago.

 

Is he wrong that PM has negative current income, and has barely kept up with inflation the last couple of years?

Talking badly about someone in the financial field, that it just a propoganda piece, is pretty darn funny when so many will lemming like follow others whose only business is pimping PM.

Btw, i wasn't in love with the article, believing it was leaving out some positives to pm. I just did not care for people attacking his credentials when others they hang on every word of has lesser credentials.

 

His credentials are less than nothing, I'd trust a man with zero schooling over him. I also don't follow what anyone says, but I know a propaganda piece when I see one. The fact that he only states arguments against precious metals (and only weak ones at that) shows what he is trying to do.

He wants us all to join him in the fantasy world of credit derivatives where he can take our money and leave us thinking what the #$&# just happened?

 

So, a writer who writes nothing but praise for precious metals while ignoring their historical shortcomings you would equally label a "propaganda piece" and talk about his "fantasy world"?

I am just trying to understand whether its the nature or the writing you are objecting to, or simply the fact you only accept as "fact" those opinions you base your world view on and agree with.

 

This x1000. Precious metals are a great for a PORTION of one's investments. Gold in particular does a fine job diluting the risk of a portfolio full of stocks and bonds.

 

Kind of like what you did with this article huh?

 

If someone feels the need to go out of their way to slam precious metals it just makes me want to buy them more. There are pros and cons with every market, but when one attracts negative attention on its own then obviously someone has a vested interest. If this person wanted to be effective at changing minds they would need cover all markets instead of focusing a hit piece.

I did read it, and the author states metals are a bad play right now even after great gains because it is "chaisng the herd". That's laughable. The herd doesn't have a clue about metals.

 

Agreed. I expect medoraman to dislike this.

 

Its pretty much true though. Gold has no real inherent value or real uses (save a few modern uses in electronics and the like) save for the fact that its pretty. So for most of our history, Gold has been worthless save as a metal used as a value system (to REPRESENT wealth). That is to say that it has had little use other than that it is pretty and a good way to show wealth. What better way to show wealth than to spend time and effort extracting and working a metal to wear and decorate your stuff that has no value other than its impressive looking? That is why it is considered to be decadent to have so much Gold! Because each and every one of us could live our whole lived without one bit of gold and never be worse off for never having owned any.

This is probably why Gold was used by the Midians (who happened to have a lot of gold deposits in their territory) used it when they minted their coins, there was little other use for it anyway save for decoration.

Today gold is a commodity, a real commodity bought and sold on a commodities market which is relatively new in historical sense. So the value of gold is dictated by that market as would ANY commodity. Because of this you simply cannot make currency out of it as the value fluctuates as does all commodities and what was once 10 dollars worth of gold may be 5, 16, 20 or 50 dollars worth of gold in two weeks. This is true now with copper as the US has minted pennies at a loss because market prices for copper fluctuate and rise. Of course all merchants could keep a kit close at hand to test gold purity and a market report for the price of gold today...and if its ten dollars of gold but gold prices are now twenty...melt it and sell for a profit...that has happened before with American currency.

sure, gold is okay for an investment but if you are buying the actual metal, not as much. You can buy it and sell it like anything having to do with investing but with heavy gold, shipping it costs money and you will ALWAYS buy above and sell below as you have to pay the middle men so the investment would be long term and don't think it will help you when the currency collapses because without a market to value it, gold is completely worthless as it gains ALL of it value from the market because, again, it has few practical uses to recommend a high value save relative rarity, you are better off hording grain and the paper we mint our currency with has more practical uses as a commodity.

I also agree with the scare tactics touting the worthlessness of our currency as compared to the steady value of gold. These are just used to scare people to spend that worthless currency to buy gold with it. When you buy gold...what do they take for payment? That worthless currency....hmmm...its good enough for the guy selling the gold.

In the end, a monetary system is supposed derive its value from a sum total of a nations worth, not how much gold it can horde and sit on. Our so called worthless paper currency is no different than what our ancestors used gold and silver for...a way to represent wealth....it isn't the wealth, it represents it and almost anything can represent wealth. The real wealth is (and always has been) the land, the resources, the people and their production. Gold will not stop the collapse of a monetary systems or save you or our economy...its a good long term investment if you are buying the metal and a good investment to buy and sell in Gold notes if you so choose...but it would be disaster to try to go back to a gold standard, even as far back as our founding fathers this system was in question as to its realistic viability to sustain a modern economy.

Now, as for coins...I loves Silver and Gold.

 

Heck no. I said I didn't love the article at all, (read post #10). I was simply responding to those attacking the credentials of the person who wrote the piece. I simply do not see others discussing the credentials of anyone in FAVOR of PM, other than saying he is a "pm expert", whatever that is supposed to be. Just because someone has been hawking pm for 20 years trying to make a living getting people to listen to him does not make him an "expert" in anything but making a living.

I will ask again, if you wish to attack this author's credentials, (like I said I didn't love it, but it had fair points), what are the credentials of those PM hawks that everyone listens to then?

 

I am not so sure about the author's points, but I like to read all sorts of things and make up my own mind. Since PM's have stalled in the past couple of years, he might have a point. I think they will start their bull run again, but who knows? If I had a choice I think PM's are what I would pick, but maybe that's because I have seen them come up from the bottom. It's hard to change your thinking. For the past 10 years or so I felt like you couldn't go wrong buying silver. That could be over now, or maybe not...

 

I have been saying for last 2 years in this forum and in other places PM price are going to stall till 2014 at the least. I still shake my head at the insane predictions like Silver $100/oz etc. IMO i am more bullish on platinum or even palladium than Silver or Gold.