Gold has been considered as a good investment thats the main reason in India they gave gold ornaments as a dowry to the bride which can be used if necessary for the family. Its also used to pass on the wealth from one generation to another.
Enough of Gold history. Let me get on the fact. Look at the chart below. Last year around the month of Jun, it started to slowly raise and hit a lower high and pulled back on Sep again to $650 range. After that it never looked back and started to soar supported by subprime crises and later by weak economy.
Check out the 5 year chart below, it has come a long way from $300. If somebody would have invested in just 10 bullions for $3000, now its worth $10000. Just calculate the return which is 225%. Wow, who don’t want to get that much return. You and me can’t predict the economy that pushed GOLD this far. But you surely make a wise choice to buy it when its affordable and it will never let you down.
Recommedation: Long term Investor
Don’t buy now. What goes up faster is set to come down 2 fold faster. Gold will eventually come down to a price which is afforable to conservative consumers. It will sure to pullback to $700 – $800 range or much lower. That time, don’t hesitate to catch the train. It will be a good investment for long time to come. The 20year chart below is the evidence.
(Chart courtesy: http://www.usagold.com/)
Short term Trader: