""History shows gold has had some great bull mkts. but gold has had extended flat to down cycles as well. IMO gold will be a poor performer compared to other investments over a 100 year period because there is no income. We are currently in a bull mkt. & that is the right time to be in gold.""

"You're missing a key point. Gold has only been regarded as an investment since 1933. Prior to that, it was money. As late as 1971 gold was still money as far as international settlements were concerned. The "price" until 1933: $20/oz. Revalued to $35, it remained that way until the US went off the gold standard and we moved to pure fiat.

It makes no sense to talk about money as an investment. An investment is something you dowith money. So, any comparsion of the investment returns on gold has to start at 1933. But the correct question to ask is, how does gold @ $20 in 1933 compare to gold @ $900 in 2008? Has it tracked inflation? If so, it is performing it's traditional role as money, even if it isn't called that anymore."

ebear

It looks like you are missing some key points. My reference to 100 years is the next 100 ,years. My views are based on my personal experience since 1970. Fiat money is an investment just as art, stocks, commodities & so on are investments. You can pick your poison. Have you paid your bills for groceries, taxes or utilities in Nth. America with gold or gold coins? During the past 37 years I remember 3 major bull mkts. in gold. For more than half of that time gold was a very poor investment. Best investment results have been obtained by timing. I guess we can mark you down as a "gold bug" but that does not mean we must all play by your rules, guidelines & definitions. I think I will continue to be guided by my own experience. I'm happy as a clam in my own "fool's paradise".

Regards

Joltin