Posted by Andrew at 1:31 PM on Nov 05, 2009 | Report this comment

"The only guaranteed money in speculation is for the middlemen who facilitate the parting of fools and their money – or gold, as they case may be." One should never EXPECT a return on the principle sum when speculating, which is why speculation is really only suitable for those who can afford the losses. The fact that you made this claim is unbelievably telling of how little you know about investment strategies, not to mention that you called the Cash4Gold initiative a speculative action, which it most certainly is not. What gives this author the idea that he is eligible to write about matters of personal investment strategies or monetary/fiscal policies?

Posted by Andrew at 1:30 PM on Nov 05, 2009 | Report this comment

"Precious metals are prone to the same sort of fluctuations as any other asset, be it mortgage-backed securities, shares of Citigroup or Beanie Babies. It might be considered a “stable asset,” but that doesn’t mean it’s smart." Anything is prone to fluctuations, but it's pure intellectual dishonesty to claim precious metals are as risky of an asset as unstable securities, low-yielding public stocks, or toys. In fact, the only reason why gold has become an investment strategy is because it is no longer representative of wealth in this country (or any "civilized" country, for that matter) due to the fact that our money is not backed by it anymore. As long as our economy is carried out through a fiat currency, precious metals will be an important asset in anybody's portfolio as a leverage against long-run inflationary policies. "Most people who invest on what’s trendy are the ones who find out about the party just as the food is gone and the bill is arriving." Which is why people who were smart bought gold after the NASDAQ crash at the turn of the millennium. Anybody with their faculties in place could have realized that this economic collapse was not only easily predictable, but also easily avoidable. That's why I, and many others, have made considerable profits on gold & mining stock investments, while a frighteningly large number of people are desperately trying to figure out how they're going to maintain their day-to-day wealth.

Posted by Andrew at 1:30 PM on Nov 05, 2009 | Report this comment

"History may often repeat itself, but to see the return of rampant speculation on an individual basis just as the recession ends is disappointing indeed." Just as the recession ends? Have you the journalistic integrity to cite what precisely makes you think that the continuing decline in the value of the dollar, the continuing in decline in employment numbers, and the enormously inflated money supply we conjured up to pay for our bailouts, are signs of economic recovery? In our economy, investment and savings are discouraged by poor monetary policies on the part of the Federal Reserve (artificially low interest rates, which hurt savings and encourages excess consumption), and equally poor fiscal policies on the part of the US Treasury (out-of-control deficit spending on the part of both Republicans and Democrats). What you deem "rampant speculation," would much more appropriately be labeled "necessity." After all, because of the government's cheap credit, and the subsequent effect this had on the financial industry, many individuals HAVE to sell their precious metals now in order to make ends meet.