This post is about the economic weather. I am glad I bought a few gold two years ago - thus far Gold is at 900$ an ounce. Indeed, more than 200$ gain per ounce is great. Anyway,
The question is, is there going to be a repeat of the 80's. And is it a good a idea, still, to buy Gold now, when it is already at 900$?
You tell me.
My answer would be.
1. Do you believe the US economy going into recession?
2. Do you believe India's (these people will buy Gold no matter where the price is)to be improving in the year ahead?
If yes, then I would buy Gold.
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As a backgrounder (from AFP):
Gold's record advance could continue as nervous investors buy into a traditional store of value against the turbulent backdrop of a falling dollar, higher inflation and a global credit crunch, analysts say.
Gold's last great charge was in the 1970s -- a decade marked by recession, the two stunning oil shocks of 1973-79 and 1979, rampant inflation and doubts about the outlook for the US economy, then as now the world's largest.
As a result, investors flocked into the precious metal, pushing it up to a then-record $850 per ounce in January 1980 before it steadily fell out of favor as the United States and the Western economies slowly recovered.
Gold has always been a store of value and although many economists argue that it has no place in a modern monetary system, investors continue to look to it as a safe haven in times of trouble
The US economic outlook is increasingly uncertain, with top US investment banks -- among them Goldman Sachs and Merrill Lynch -- saying that the United States is in recession or very soon will be.
--------------
So decide for yourself. I am not an expert, ask a professional advise somewhere else.
The question is, is there going to be a repeat of the 80's. And is it a good a idea, still, to buy Gold now, when it is already at 900$?
You tell me.
My answer would be.
1. Do you believe the US economy going into recession?
2. Do you believe India's (these people will buy Gold no matter where the price is)to be improving in the year ahead?
If yes, then I would buy Gold.
------------------------
As a backgrounder (from AFP):
Gold's record advance could continue as nervous investors buy into a traditional store of value against the turbulent backdrop of a falling dollar, higher inflation and a global credit crunch, analysts say.
Gold's last great charge was in the 1970s -- a decade marked by recession, the two stunning oil shocks of 1973-79 and 1979, rampant inflation and doubts about the outlook for the US economy, then as now the world's largest.
As a result, investors flocked into the precious metal, pushing it up to a then-record $850 per ounce in January 1980 before it steadily fell out of favor as the United States and the Western economies slowly recovered.
Gold has always been a store of value and although many economists argue that it has no place in a modern monetary system, investors continue to look to it as a safe haven in times of trouble
The US economic outlook is increasingly uncertain, with top US investment banks -- among them Goldman Sachs and Merrill Lynch -- saying that the United States is in recession or very soon will be.
--------------
So decide for yourself. I am not an expert, ask a professional advise somewhere else.
