TheOcho wrote:General Tso wrote:dude gold was $500 an ounce in 2006, today it is over $1400 an ounce. it is something that is desirable only in times of financial turmoil. It has no capacity to generate revenue or dividends the way a rental house or a stock can. its value has been driven up by a bunch of quacks like Glenn Beck and as soon as the world economy smooths out, gold is going to be worth $500/oz. once again.
if you want a safe investment and have a down payment, buy a house. that both appreciates in value AND generates rents. and prices and rates are pretty damn low in most parts of the country.
There is absolutely no reason to assume a home will always increase in value. People were spewing that same type of rhetoric just before the housing market crashed. Buying is not always the intelligent option.
Also, most people who are financially savvy don't buy gold or silver to earn a massive return. Gold and silver are used to maintain a store of value when the dollar is losing value. It isn't about generating a return on net (although that might happen) it's about maintaining your current level of wealth. And I believe you can buy stock in companies that mine gold that will pay dividends.
Exactly what I was trying to point out earlier. I happened to buy gold before it really took off (thinking I could protect my $$$ by doing so) but then turned it into the ability to pay for law school.
I agree fully with your point about the housing market.