This is amazing, isn't it? This is the price of gold from 2000 to 2011. What this really means is that the value (purchasing power) of our dollar has gone down, down, down.
I've seen pretty convincing evidence, actually, that gold is in the middle of a pretty big commodity bubble right now. You can't eat it, you can't build things out of it, you can't burn it for energy.
I remember hearing those exact same things in 2008. We very well may have a downturn in the precious metals arena like we did earlier in the year, however the overall weakness of the dollar is as much a cause for the jump in prices as anything else. This will only continue as we spend more than we have and borrow and print the extra needed. That being said, IMO there is not much rationale behind stocking up on gold/silver if you aren't completely prepared with your food storage and energy solutions. Once that is done, if there is such a thing, this is an area that could continue.
I've seen pretty convincing evidence, actually, that gold is in the middle of a pretty big commodity bubble right now. You can't eat it, you can't build things out of it, you can't burn it for energy.
ReplyDeletehttp://money.cnn.com/2011/01/10/pf/investing/investing_in_gold.moneymag/index.htm
I remember hearing those exact same things in 2008. We very well may have a downturn in the precious metals arena like we did earlier in the year, however the overall weakness of the dollar is as much a cause for the jump in prices as anything else. This will only continue as we spend more than we have and borrow and print the extra needed. That being said, IMO there is not much rationale behind stocking up on gold/silver if you aren't completely prepared with your food storage and energy solutions. Once that is done, if there is such a thing, this is an area that could continue.
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