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Originally Posted by Yakk
Yes? Just buying the DJIA will kick the crap out of inflation from 1933 to say 2002. If you where smart and diversified internationally you could be doing even better.
Land, to the start of the current bubble, gave worse returns than the DJIA.
Gold moves randomly, fueled by speculation more than demand.
That's gambling. 
I understand you benefit from talking up your bet to other people, but things that have far less value than their marginal utility to people don't make good investments at any time. |
On the short term gold markets are speculative or gambling, on the long term gold does nothing but go up in relation to US dollars. I'm not buying gold to try and make money, I'm buying it to maintain value. And my point is I don't see any of these retirement accounts with the ability to keep up with inflation. Sure you'll see the dollars in your account racking up with intrest, but the buying power of those increases doesn't out weigh the devaluing dollar (short of risky speculation).
100 years ago I could buy a nice middle class house for about 100 Double Eagle Gold Coins (approx. 1 ounce gold, $20 dollar face value). Today I could buy a similar middle class home at today's standards for the same 100 Double Eagle Gold coins. The home from 100 years ago was $2000, today that home is closer to $100,000.
Gold has held it's value for thousands of years. Fiat currencies don't. I don't see how gold is a gamble.