Word: goldings
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Dates: during 1970-1979
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True enough, the 30 stocks in the Dow Jones industrial average have not performed nearly so well as gold in the 1970s. They have lost close to 8% in value. But that hardly means that gold, which pays no dividends, would have been a better play. It was illegal for Americans to own gold until 1975, and by that time foreign speculators, anticipating an immediate rush into gold, had bid it up to nearly $200 per oz. At that level, investors remained wary, and within a year the metal slumped to about half its value. Meanwhile, the Dow Jones average...
Some forms of gold investment may turn out to be sucker's bets. Anyone with just one Krugerrand can boast about his "gold holdings," but the coins typically sell for 6% to 10% above the going rates paid by dealers for bullion. Worse, some banks and jewelry shops that sell them will not buy them back except at a similar-size discount, and a number of retailers will not repurchase them...
Hoping to prevent the Pretoria government from profiting by the U.S.'s gold fever, Congress last year passed a law requiring the Treasury to begin selling its own one-ounce and half-ounce gold pieces next spring. The coins, with profiles of Louis Armstrong and Mark Twain, will not be legal tender in the U.S., and will presumably be no easier to swap for real money than the Krugerrand...
...Administration is clearly right in wanting to bury gold as a monetary reserve. It would be dangerous to make the official wealth of the world's nations dependent upon the erratic supplies of a metal that comes largely from South Africa and the Soviet Union, whose governments can pump up or cut off sales at will. But gold will continue to glitter until a stable and acceptable monetary substitute can be found. In theory, there is nothing wrong with continuing to use the dollar as the world's primary currency for international trading and holdings of national reserves...
Many countries, companies and individuals are deeply involved in the gold trade and benefit when the price goes up. Thus they are committed to gold and tend to promote it. Here are some of the leading members of the Gold Establishment...