US Dollar V Gold

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If you’re serious about making money from trading stocks each month (or each day!) as easily as possible to generate a regular income for yourself, then this will the most important message you read today.

So for as long as the "smart money" continues to mistake a loss of wealth for a safe-haven investment, that leaves the rest of us with an even crazier choice.

Whether or not to buy gold - a non-yielding asset - to defend our wealth against the loss of real value in both the Dollar and bonds.

Call it spite if you must. But if the world's No.1 currency - and the world's No.1 source of debt finance - both fail to outstrip inflation, investors will slowly go mad. Mad enough, in fact, to buy a mere lump of metal, used as a store of value for more than 5,000 years, that still pays precisely zero.

Gold was for the birds only between 1980 and 1999. Real yields on 10- year US Treasury bonds, on the other hand, averaged 4.35%. Since the start of 2000, in contrast, gold has now gained more than 160%...the current setback notwithstanding.

Ten-year US Treasury bonds, on the other hand, have paid barely 1.9%. Last month real yields fell below 1.0%, less than one-third what they were paying a year ago.

Is it any coincidence that the Dollar's now toast? Is it any surprise that gold just shot to a near all-time record high?
Tags:

yields    gold    bonds    treasury    birds    1980    crazier    lump

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