Gold Ads and Advertisers Bug MeOk, I have just about had it with these Gold ads. After the last six months of hearing that, what with the bad economy, we need to invest in Gold, I had just about tuned them out. Now that there is a little economic news that is being taken as "Good News" the next wave of Gold Bugs attack - with the economy recovering, we need to invest in GOLD!!
Now, I don't listen to a lot of television or radio, but there is usually one playing near by, but even so, all the shows I watch on TV and everything I hear on radio is completely full of ads telling me to BUY GOLD!! Now, wait a minute...
Is there any other investment that advertises itself this way? Stock brokers, banks, car makers, etc. are all telling me to make my purchases with THEM. They don't say: "You really need a car. You are too stupid to know this, but a car is a really good way to get around. Buy a car today! By the way, please buy it from us." But the gold sellers have to convince you to buy their questionable product in the first place.
Don't get me wrong - I LIKE gold. I own a lot of it for the same reason I have a lot of ammunition - if our economy or even civilized society ever breaks down it will be a good thing to have. But as an investment it is about the worst thing there is. It goes up, it goes down. $300 one year, $1000 the next. But, as a metal, its value over time will definitely go down. That is the nature of things, and the lesson of history. Commodities like that are subject to a nasty boom/bust cycle. Price goes up, and the miners invest in more equipment and dig more holes, so supply goes up, therefore the price goes down. Gold is about one thou right now. This ad I just heard thought the listeners to be such stupid marks that it said that, the last time gold was a thousand, if we correct for inflation that would be two thousand dollars today! That does not mean it will go up to two thousand, it means that the value is declining over time, as supply increases and technology improves.
Now, for all I know gold will go the two grand, or even five. I buy lotto tickets too. But these vultures trying to convince people on limited incomes to spend their money on a commodity are just plain evil. Commodities trading is well known to be the most dangerous type of investing. but the gold bugs are trying to make some people believe that GOLD is in a category unto itself. That's fraud. That's nasty. I hate it.