I don't have nerves of steel. I just have a good understanding. That makes weathering the periodic downturns pretty easy.
June 10, 2011, 12:21 a.m. EDT
Gold investors need nerves of steel
Precious metal’s volatility demands patience and understanding
By Myra P. Saefong, MarketWatch
SAN FRANCISCO (MarketWatch) — Many investors have a great love affair with gold, but as with any relationship, they’ll have to work hard to get the most out of it, be patient and most of all — understand the reasons for gold’s actions.
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“Many investors ‘date’ stocks, but some ‘marry’ gold,” said Philip Romero, a finance professor at the University of Oregon and former chief economist of California. The “holding period for stocks has been shortening, but I expect holding periods for gold have been lengthening.”
And for many gold bugs, their holding period is “forever — till death do they part,” he said.
For many, that’s a commitment well worth it. Investors’ love affair with gold began about a decade ago, when gold-futures prices traded roughly around $260 an ounce. Gold futures closed above $1,540 on Thursday.
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“The question right now is whether this ‘slow patch’ will devolve into a more significant and lasting slowdown, or even a double-dip recession, and this question raises the next one: What will the [Federal Reserve] do?” he said. “Both equities and gold are looking to monetary policy for direction.”
And right now, monetary policy looks like bad news for the dollar, which is supportive for gold.
Full story: http://www.marketwatch.com/story/gold-investors-need-nerves-of-steel-2011-06-10
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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