Should You Purchase Gold Today?
As this article is being written, gold is consolidating at the $1,640 an ounce level after peaking at $1,900 in August of 2011. In addition, gold has fallen below both its fifty day and 200 day shifting averages. There isn't any shortage of financial commentators over the Wall Street pole that is prepared to write gold's obituary but wait... is the bull market in gold really finished?
The most curious matter about all of this is the Wall Street total view. A viewpoint, which hasn't deviated for many years. The consensus view is definitely that gold is a barbarous relic and so a terrible choice. After all that's what Keynes stated and how can Keynes, be mistaken. Then Wall Street was mugged by gold. For twelve straight years, gold out performed the S&P 500.
However, the real scenario is more awful than that. In August of 1971 president Nixon had taken the US off the gold standard. In those days gold had been selling for $35.00 an ounce. In the 41 years since 1971, the buying price of gold has risen 54.28 times to its all time high of 1900 as well as 46.85 times to its present high. Then the Dow Jones industrials had been then marketing at about 890. The Dow peaked in October of 2007 at 14,164 for an increase of 15.91 times. Its recent value is 13,038 a rise of 14.64 times.
Wall Street wanted a new scenario. The new story was that gold was at a bubble and therefore must not be acquired. Overnight it went from being a barbarous relic that had been a bad purchase to being a bubble without ever being a buy.
One thing you need to know about gold is its remarkable rarity. The respected consensus is that right from the start of recorded history to the current between 150,000 metric tons and 165,000 metric tons is produced. At its most optimistic, that means about.76 troy ounces per human being. To put it differently when you provided each person on earth a rather significant gold ring you'd probably wipe out the earth's gold supply.
About the Author
For an investment being in a bubble more is necessary than a historically high value. The real key need is that the investment must be possessed by folks, investors really who will be panicked into dumping the asset by falling deals creating a death spiral. More advice on gold investing can be obtained here: http://investingingoldv.com/gold-ira
Tell others about
this page:
Comments? Questions? Email Here