tag:blogger.com,1999:blog-1602023866179666640.post1250399031935676506..comments2024-03-22T00:30:54.666+08:00Comments on Create Wealth Through Long-Term Investing and Short-Term Trading: Buy Gold/Silver as insurance or hedge against inflation? (2)Createwealth8888http://www.blogger.com/profile/08563834016250153049noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1602023866179666640.post-30204934899297681192011-09-03T22:55:48.296+08:002011-09-03T22:55:48.296+08:00I see your blog post has grown 4 more paragraphs s...I see your blog post has <i>grown</i> 4 more paragraphs since I made my last comment. ;)<br /><br />I understand what you are trying to say. By the same token, I can also say that companies could shrink and even go under. <br /><br />Now, gold cannot grow physically. By the same token, can gold shrink or go under? ;)<br /><br />We have to recognise that gold and silver have a place in one's investment portfolio, just like equities and bonds. At different times, being in one or the other could be a better move. <br /><br />Do you believe me if I were to say that there would come a time when it would be better to be invested in bonds than equities?AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-1602023866179666640.post-49414670909131709012011-09-03T14:30:31.854+08:002011-09-03T14:30:31.854+08:00I don't think you get it exactly right for equ...I don't think you get it exactly right for equities. <br /><br />Stock price of equities can rise from both speculation i.e. supply and demand; and from growth of companies either horizontally and/or vertically. Gold can never grow and no matter what.Createwealth8888https://www.blogger.com/profile/08563834016250153049noreply@blogger.comtag:blogger.com,1999:blog-1602023866179666640.post-81153838081760047872011-09-03T13:38:15.172+08:002011-09-03T13:38:15.172+08:00You have to realise that gold and silver are actua...You have to realise that gold and silver are actually two of the oldest forms of money, money that we cannot print as and when we want and in whatever quantities we want.<br /><br />You also have to realise that both metals have utility and, therefore, value. This case is stronger for silver than gold.<br /><br />Just like any other assets, if there is demand and if supply is limited, price will go up.<br /><br />For equities, it would be the same. If there is strong demand and since the number of shares at any one time is limited, we could see price going up. <br /><br />Are not people who buy at higher prices greater fools especially if valuation is no longer cheap?<br /><br />There are very few things in this world that are not amenable to the "Greater Fool" idea although I have always disliked the condescending tone of the phrase.<br /><br />If you are simply saying gold and silver do not generate cash flow, then, there is no argument there. You are right. However, is that enough reason not to invest in them?AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.com