I'll take the easy one first. A capitalist's rule of thumb is buy low sell high. Right now gold is at an all time high. Remember what happened last time precious metals took a run up during the '80s? Remember what happened to gold when the recession was over? Those guys took a bath big time. Gold dropped from $1000 an ounce to $300 an ounce overnight.
But there's another aspect to gold. Like I said above, together with government bonds, gold is a haven in times of great risk, so you can always tell when the risk is perceived to be high. Money flows into bonds and gold. But they are both just a hedge against a crash. If the economy crashes, gold prices will come down proportionally with the rest of the economy but it will still be one of the highest valued items at whatever level the economy settles out. Just like any form of insurance, putting your money in gold and bonds is a wrong-way bet. You're just betting against yourself and everyone else. My father, a degenerate gambler, died in Las Vegas swearing the best bet was the don't. Oh, yeah, those commercials wanting your gold are a real ripoff. And you have to trust them to an honest count, too. On Sep 12, 6:53 am, Slip Disc <[email protected]> wrote: > I always laugh at the television commercial about; "we buy your > unwanted gold"..... what gold is unwanted? > I think they are speculating gold futures at an all time high. > > On Sep 12, 1:22 am, rigsy03 <[email protected]> wrote: > > > Was just refreshing my memory about the Hunt brothers attempt to > > corner the silver market in the '70's and '80's. If gold is > > "worthless" why is it high and where are all those lockets heading?
