What do Americans think about gold?

[MachineGhost]

According to a recent Gallup poll, gold leads four other types of investments when Americans were asked to pick the best long-term investment. The poll found that 28 percent of Americans view gold as the best investment vehicle for the long-term, compared to 20 percent selecting real estate. Paper assets such as stocks and savings accounts were tied for third place with 19 percent, as bonds finished last with only 8 percent. The new findings were part of Gallup’s April update of its annual Economy and Personal Finance poll.

Full Story: http://www.mining.com/2012/05/02/what-d ... bout-gold/

[MediumTex]

That's really bizarre.

I wouldn't even call gold an investment, much less a better investment than stocks.

Saying gold is the best investment is like saying that burning down your house is the best way to create a nice pile of ashes.

[Tortoise]

28% of Americans may indeed believe gold is currently the best investment, but how likely is it that 28% of Americans actually are invested in gold?

[hoost]

I don't really look at gold as an investment either.  To me it's more of a hedge against the dollar.  Given the massive debts and deficits and the government's policy of printing money as the solution, it's no wonder people would expect gold to outperform the dollar.

It's interesting that you have gold, which is sort of a bet on increasing interest rate as #1, and real estate, which is essentially a bet on decreasing interest rates as #2.

I think I'll stick with my Accord.

[dualstow]

On the other hand, remember the video posted here about Indians buying gold jewelry for weddings at incredibly high prices. (I don't mean overpriced. I just mean thousands of US$ worth of jewelry. I just mean lots of money). They all said the same thing: they think of it as an investment, and not a purchase.

As for me, every day I plan to walk down to the dealer and buy some more gold coins. Every day gold falls further and I think to myself, whoa, I'm glad I didn't buy today. But, I have the cash set aside and I should really buy.

[cabronjames]

imho many ppl, including USians, are "bugs" of their favorite asset

gold bugs get dismissed by stock bugs, with the stock bugs not understanding the irony.

it seems that a huge portion of the FIRE sector are stock bug evangelists, urging asset allocations of 70%+ in stocks, or even more specific like US stocks

baby boomers who are seemingly the last generation to have a choice of working for the same private corporate employer for 20+ yrs, may have 50%+ of their assets in company stock, despite all the evidence of "Good Companies" Epic Failing like Enron, Sears; & Medium Fails like "Blue Chip Corps" stocks trading below the nominal price of 10+ yrs ago like Microsoft, General Electric, etc

despite the Real Estate Bubble peaking in 2006, many ppl are STILL Real Estate bugs.  Real Estate has the unique possibility of a individual taking huge leverage, such that many Real Estate bugs who say have their own house & 3 rental houses/apartments, all with a mortgage, have over 100% of their assets tied in the Real Estate bug basket.

Many skeptic savers, like the proverbial widow grandma, trust none of the above, & are cash bugs, holding most of their assets in FDIC accounts or I Bonds.  I would the say the Permanent Portfolio's diversification is a safer real return investment than being a cash bug.

Perhaps the only sensisible bugism is the "Variable Portfolio" in the "nano private equity stock" of one's own owner operated entrepreneurial small business that is in the productive economy.

Thanks to this Perm Port community for showing me the wisdom of diversification & the dangers of favorite asset class bugism

[dualstow]

Bought ten more krugs this morning. I wanted eagles, but the dealer didn't have them. I asked to lock in a price, and he started adding lots of big numbers to a base of ~ 16,390. Looking at his screen, he said the spreads were bad (large) right now. His price for krugerrands was exactly the same as AJPM's krug price ($1600, corresponding to the same spot price of course) so I went ahead and bought krugs.

The spread wasn't great, but the last time I bought a coin, the spot price was far higher. One way another, you pay. 

However, I noticed that AJPM's price for eagles was only $20 more than their price for krugs, far less than the price at the counter before me. Maybe AJPM has more eagles in stock (they probably do), or maybe my local guy just wanted to steer me toward krugs because he had them. Either way, I'm happy with my purchase. I'll be even happier if krugs go for $3,000 when I leave them to my nieces 40-50 years from now.

...

As for me, every day I plan to walk down to the dealer and buy some more gold coins. Every day gold falls further and I think to myself, whoa, I'm glad I didn't buy today. But, I have the cash set aside and I should really buy.

[dualstow]

Bought ten more krugs this morning.

And today I walked them home. In a non-descript everyday-use item that, in the event of a hold-up, would not also be stolen.

At least with equities, all the sweating occurs in front of my computer screen.  ;D

[MediumTex]

Bought ten more krugs this morning.

And today I walked them home. In a non-descript everyday-use item that, in the event of a hold-up, would not also be stolen.

Was it one of those dog poop bags that people carry with them when walking their dog?

[dualstow]

Bought ten more krugs this morning.

And today I walked them home. In a non-descript everyday-use item that, in the event of a hold-up, would not also be stolen.

Was it one of those dog poop bags that people carry with them when walking their dog?

lol, no, but I think we have a winning idea for next year's purchase. Only someone savvy enough to see me pass too many trash cans would know something's up, and even then gold would be way down the list from "this is a weird guy, not throwing away his dog poop."

Hmm, what I really need is a dog.

[rickb]

Was it one of those dog poop bags that people carry with them when walking their dog?

God damn you Medium Tex!  Now I have to find some other way to carry my gold home.  Hmmm.  Maybe if I could get Poopsie, I mean KILLER!!!! to injest it.  1 oz coins are a little large, but the 1/10 oz ones might just do the trick.