Tuesday, August 2, 2011

5 Myths about Gold

The leprechaun is an Irish folklore fairy in Irish folklore. The leprechauns spent their time making shoes and making mischief.

Leprechauns store away all their coins in a hidden pot of gold at the end of the rainbow.

If a leprechaun is captured by a human, the Leprechaun has the magical power to grant three wishes in exchange for their release.

Below are 5 other myths in circulation about gold

Gold is the Best Metal to Invest in.
This myth depends on the price. Over time silver and platinum have all taken similar paths of value.
Over time, silver has beaten gold by 25%, platinum by 5%. At different points one metal has risen much higher, while another has been left behind. You aren't always stuck with just gold.
Verdict: Myth

Gold is Safe Haven
In twenty years (1980 to 2000) the purchasing power of Gold fell by 80%. In 2008 the value fell by 33%
These facts dont represent a safe harbour from the storm. Gold is only an asset and is no safer than any other.
Verdict: Myth

Gold has Kept It's Purchasing Power
If gold had "kept its purchasing power over 3,000 years," that would merely mean it produced a real, inflation-adjusted return of 0%. Inflation-protected government bonds will give you inflation plus 2%.
Verdict: Myth

Gold is Overvalued
There is simply no evidence for this.
Verdict: Myth

Gold is the Only real money
The only thing that makes anything "money" is that other people—meaning "society"—accept it as such.
If Anarchy should come, then tinned food becomes a form of money. Moral: Always have plenty of tinned food stored in your cupboards.
Verdict: Myth