All that glitters is gold....
This past week we saw somewhat of a roller-coaster ride in Gold prices. Gold hit $989, then $1002, then fell back down to $940. I think Gold is going to continue its climb, however, despite its recent setbacks. I wouldn't be surprised if we see $1200 Gold by April, 2009. One thing is for sure.. with the stimulus package promising to pump in excess of a trillion dollars into our economy and causing inflation, $2000 gold is inevitable by mid-2010.
Here is a quote from www.goldiras.com
"From January 1st 1999 to December 28th 2008 Gold has gained 320% the Dow Jones Industrial Average has lost over 12%. Any person who has Invested $5,000.00 per year over the past 20 years has a tangible portfolio valued in excess of over a half a million dollars at the end of 2008."
On Monday March 2 2009, the Dow fell below 7000 for the first time since 1997. Harry Dent predicts the Dow to tumble to 3800 by 2012, sparking the Greatest Depression in United States history. Gold also fell, but not as dramatically as the stock market has seemed to lately. The verdict? Gold seems to be a good investment by any standard. Historically, what is bad for the U.S. dollar and the stock market is good for Gold.
In the book,"The Great Depression Ahead" by Harry Dent, it is forecasted that the oil and commodity bubble will be the last of the four bubbles to burst during what we are now calling the bubble boom of 1990 to 2010. The first bubble was the tech bubble which burst in 2000. Next we had the housing bubble and then the credit bubble. I think we are going to see gas, gold, and food hit such high prices that our heads are going to spin off...
If you are thinking about buying gold I would recommend Buying American Gold Eagles. They are the most liquid and the most popular.
