It kind of amazes me that some people see gold and silver as the ultimate wealth protector. The article claims gold tends to hold its buying power over time. It wasn’t all that long ago that gold was under $300 an ounce (and silver under $4). Had someone purchased gold at the peak of its last bubble in the 80’s, they would have had to wait twenty years to break even (not counting inflation).
I’m all for people doing whatever they think is in their best interests, but I wouldn’t touch gold with a ten-foot pole. I purchased metals back when they were practically giving them away, but right now, this run up looks speculative to say the least. Like every bubble, there will be plenty of folks pushing the “product,” not because they care about you or I, but because they want to profit from it. Historically, these things always burst, and when they do, the late comers get slaughtered.
I need some guidance on managing my mother’s 401k to protect what she has and hopefully grow it to help support her through her illness.
Gold went up like a rocket when Carter was President because of inflation. It hits all time highs today for the same reason. The fed is cranking up the printing press. No one want's to say inflation but that is what is happening.
Once something becomes common knowledge for us little folk, the bubble is on its way to bursting. I'm actually wondering if maybe I should sell a few small gold trinkets that are bent and useless. It's not a lot, but at the prices now, it might be spending money for a few weeks.
Mike