This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

GLD, Huh, What Is it Good for? Absolutely Nothing!

This notion that gold is a protection against hyper-inflation is completely off base.

The only way hoarding gold is going help you is if the U.s. economy completely collapses and we revert to bartering. Gold has become nothing more than a fear trade. You might hear pundits on T.V. preach to you that gold is a hedge against inflation, or commercials touting their golden eagle coins as a great investment.

Wrong and wrong: If it was such a great hedge it wouldn't have taken a hit from $1,900 an ounce to the $1,200 area in a year.

This happened in the very same year that the U.S. went through an unprecedented Quantitative Easing, best described as intentional inflation. What it boils down to is fear speculation. Yet isn't speculation and inflation the exact things that people want avoid by buying gold?

Yes, I screamed to stay away from securities such as the SPDR Gold Trust (GLD) and when the commodity was hitting $1,900 an ounce, but at $1,350 the thesis still rings true.

Other than jewelry and hoarding there is no real use for gold any more. We left the Gold Standard in the U.S. during the Nixon administration. Regardless of how you feel about it, the cat is out of the bag, and there is no going back. Matter of fact, not one country in the world is still on the gold standard. I ask you, other than fear, what makes gold worth more than silver or copper? They both actually have more uses like construction and cell phones.

I understand there will always be the fear of not having a sense of control over your world. The idea of having something substantial in your hands is compelling. One might feel that a $1 gold coin in their hand is worth $2 paper dollars if all goes to hell. If that's the case, buy silver and canned stew.

You'll be better off if things truly get out of hand, and you'll have something to eat.

David Meyers is the owner and operator of Common Man Investor.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
GLD $113.66 -0.08%
AAPL $124.43 -1.54%
FB $82.16 -1.20%
GOOG $548.00 -0.73%
TSLA $188.77 -0.94%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs