« What’s in My Wallet? | Main | Worst Investments »
$2,200/oz Gold?
By JD Bluefield | March 14, 2008
Marketwatch.com has posted an article on the rise of gold. It also contains has a great graphic to show the historical timeline of the price of gold (POG) relating to economic events as well as a parallel POG adjusted for inflation. Click on the chart to view a full image of the POG chart.
The article goes on to explain, as you can see in the graph, that although gold has broken the $850/oz POG set in 1980, in “2008 dollars” that peak would be closer to $2,200/oz. The same way hamburgers used to be a $0.10 and are now at least $1 (usually closer to $3 though), the price of gold so to should theoretically rise in step, but it hasn’t and is now catching up.
The fastest growing way to invest in metals are ETF’s (Exchange Traded Funds). I currently have not yet purchased metals through these vehicles, but have been looking into them due to their liquid nature. It is much easier to purchase/sell a large volume of money in an ETF than the actual metal itself.
Topics: Gold/Silver/Metals, Investing |
One Response to “$2,200/oz Gold?”
Comments
You must be logged in to post a comment.
March 14th, 2008 at 11:10 pm
I would like to know what the POG will be. I have seen $1,000 to $10,000. I have read 10s of articles on why, declining dollar to price of oil. In the end, no one knows right now. What matters is knowing where the top, and when to take profit.
Gold is not doing as well as the gold bugs want. The reason is the public is not looking at gold and the govt had done a good job of stopping big profits in gold speculation. So, this is a good time to invest, before the public starts to invest.