No real value.

Unlike other commodities, I’d hate to say it, silver and gold have little real value.

Silver and gold have little use. They may be used infrequently in industry, tooth fillings, etc. But the majority of it’s price determination comes from speculators. Speculators determine the current price, so that’s why gold and silver haven’t much real value.

So when investing in gold and silver, do not use the strategies of value investing. Use what the speculators are using, which is technical analysis.

However, be careful with gold (although I don’t know too much about it, I’m a silver follower). If George Soros is selling it, and your grandma is buying it, I’d have to wonder who’s going to get hurt. Take a wild guess.

Source: New York Times

2 Responses to “No real value.”

  1. desbest June 27, 2011 at 4:33 am #

    I bet if Liberty Dollars were to get more prominence, (which they can’t now), then gold would be actually worth something; rather than to be stored in vaults in order to keep the value down.

  2. James June 14, 2011 at 8:58 pm #

    Hmm it seems like your site ate my first comment (it was extremely long) so I guess I’ll just sum it up what I wrote and say, I’m thoroughly enjoying your blog. I too am an aspiring blog blogger but I’m still new to everything. Do you have any suggestions for first-time blog writers? I’d really appreciate it.