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.