Linked by Howard Fosdick on Thu 24th Nov 2011 00:04 UTC
Editorial My previous article described how you can use your tech knowledge to profit from the stock market -- if you combine it with financial analysis and careful research. This article analyzes several tech stocks. The goal is to start a useful discussion. What is your opinion of these companies? Even if you don't invest, this matters if you are in employed in IT. You're betting your career on the companies in whose products you specialize! You don't want to pick losers.
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RE[5]: $20 Dollars
by vaette on Sun 27th Nov 2011 10:43 UTC in reply to "RE[4]: $20 Dollars"
vaette
Member since:
2008-08-09

The only thing gold doesn't change in value against is gold. The fact that the price of gold is relatively stable when considered over vast periods of time is a bad thing when considering investing your savings, since as noted gold has lost value against the Dow Jones Industrial Average.

Also, this is a fact despite gold being at a historical advantage in this comparison at the moment. If we had instead looked at 2001 you would have gotten a mere $400 for your ounce of gold (when adjusting for inflation into 2011 dollars), a mere fourth of the current value which you claim to compare well to the 1915 value. As a comparison the Dow closed at a little bit over 10,000, a mere ~13% lower than today.

So gold is not at all stable short-term, and the long-term is more favourable towards broad stock market investment. This is a pretty direct consequence of another fact; Gold is not very inherently valuable, and the pricing comes down to human follies and investors speculating. This is something that stock investments don't suffer from to the same extent, since there is a physical company, usually with physical assets, making sometimes physical products, underlying the stock.

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