People that were saying not to buy gold at $1200 might be interested to see today's gold price of $1340.
Would you take advice from someone who has blown half of their lottery winnings in six months over a guy who has saved dutifully and efficiently for retirement?
People that were saying not to buy gold at $1200 might be interested to see today's gold price of $1340.
I'm sure something similar was discussed back around 1980. IMHO, if you buy gold now, you're missing the whole "buy low, sell high" point. People are buying it based on "I heard the price is going up" even though their demand (greed) is all that's driving the price up. Pretty soon they're all going to ask "What is this really worth?" and the bottom is going to fall out.
I'm sure something similar was discussed back around 1980. IMHO, if you buy gold now, you're missing the whole "buy low, sell high" point. People are buying it based on "I heard the price is going up" even though their demand (greed) is all that's driving the price up. Pretty soon they're all going to ask "What is this really worth?" and the bottom is going to fall out.
If you buy at an ask rate of $1300 an ounce, and assume that inflation rate of around 1.2% annually holds steady, you will need to sell at a bid rate of roughly $1360 per ounce in 4 years to BREAK EVEN. I expect the inflation rate to rise a fair amount, which means the return needs to be greater.
Carry the equation out for 5-10 years and see what you need to sell it for.
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