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Gold & Gold Coins Seriously Overpriced

10 year gold

10 year gold

At the time of this post Gold and Gold coins are seriously overpriced.

Look at this chart. 10 years ago gold cost $300 an ounce, and now it cost $1,200+ an ounce.

So why the huge increase? Well throughout history people have moved their finances into gold whenever they are trying to preserve there wealth. People are afraid of the economy collapsing, that the “Great Recession” may become a great depression. Additionally we may have a double dip recession. If you ask me things don’t look good for the good old USA. We need to start making and exporting more goods, as well as buying local products.



So why is gold overpriced, maybe you think it’s still under priced, this is solely my opinion. Gold is at a 10+ year high and if I where looking at a stock I would say the same thing.

So what should you invest in? Who knows, all I know is that Gold seems amazingly high at $1200 per 1 oz coin. Especially when you could have bought them for 1/4 that price just 10 years ago.

Silver is up as well, although I don’t feel that it’s as overpriced, at $19 or so dollars an ounce.

Your opinion is welcome, if you care to post it.

Related Posts:
Silver Bars or Rounds
American Silver Eagles vs. Canadian Maples

7 thoughts on “Gold & Gold Coins Seriously Overpriced

  1. Talk of a gold bubble burst is scattering. Investors have perceived gold as a safe haven during the global financial crisis. But after rising in value steadily since October 2008, the gold bubble may be reaching the bursting point as the global financial crisis fades. If investors discover no want to invest in gold any longer, then the demand for gold is going to drop a lot. For those investors who acquired gold when it reached a record high of $1,266.50 on June 21, a further drop from the Aug. 3 level of about $1,185 might be disastrous.

  2. I’m waiting until it drops to $700-$800 before i get any more. Until then I’m doing silver (poor mans gold)

    I don’t think the US Economy is going to recover anytime soon. I’m guessing 5-15 years if it ever does.

    The United States needs to create and export goods. That’s the bottom line. At some point people (china) are going to stop lending us money, when will they do this? I’m not sure, people always say they are reliant on us.

    But yea, all in all gold is a bit high.

    My guess is that 20-30 years from now when they have accumulated enough internal wealth that they can be self sustainable.

  3. Pingback: Silver Breaks $20 an Oz | PageStat Blog

  4. all of the paper money that was created in those 10 years is finally chasing all the real goods like gold, oil, wheat etc. it’s not the value of gold at a high, it’s the value of the currency being used to purchase it at a low. the financial crisis is far from over, and gold has a long way to go yet.

  5. I have to agree that the financial crisis is not even close to over, but gold was 300 8 years ago, it is now just over $1200 thats 4x the old price. Im not sure it will go much higher in the near future. Im not a financial or precious metals analyst, and you are welcome to have your own opinion.

    Really appreciate the post jon 🙂

  6. The value of the dollar has to drop to become worthless-it is easy to pay off the debt with worthless currency-compared with the rest of the world. That way we can compete in the new world economy with labor and manufacturing. Hedging with gold is very smart. Retain your wealth by owning gold and other precious metals.

  7. I just heard yesterday on the radio that our debt to China is 800 billion dollars.

    That seems large, but the kicker is we’ve printed 2 Trillion in the last 2 years.

    People say worst case scenario is that China will dump all our bonds. (around 800 billion) We’ll the Federal Reserve would just print up money to buy those bonds up. I mean we just printed 2 million, whats another .8 trillion (800 billion).

    Additionally while people often say that the US buys 30-50% of Chinese goods, and we are 30-50% of there GDP, it is in reality that we are just 6%. Yeah that’s a 6 percent.

    Heard all this on NPR so if you take issue with what I’m saying take it up with them, im just trying reiterate what i’ve heard.

    Additionally (and this is confusing as hell to me) many economist are talking about major deflation. This means the price of Goods and services dropping.

    Some people talking about inflation, some people worried about hyper inflation, and some people worried about deflation. Very confusing.

    I think Gold may rise over the next few years, I don’t know how much, but I still think it’s overpriced, and am not buying any.

    My money is on silver, and commodities. I have no clue what the Greenback is going to do. People can only assume, and that’s a gamble.

    Tax free 401k’s are still a great way to go assuming you are in this for the long run 20+ years. This is going to take a long, long time to fix, and I’m not sure we’ve hit the bottom yet.

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