Why Has the Price of Gold Fallen?
It’s been a tough week for gold bugs. Though I don’t give financial advice on this blog, I invest in gold and in the stock of companies that mine the stuff, and I repeat, it’s been a tough week. No, make that a tough month.
But, it hasn’t discouraged me. The bulk of my safely stored away in the hills of West Virginia treasury was purchased when the price of an ounce of gold was in the $220 range. So, I’m not worried. Even if you purchased gold closer to the $1000 price it was in the winter, you shouldn’t worry. Jim Sinclair is predicting a $1200/ounce price soon, and a $1650/ounce mark within the next 18 months. I believe him.
That being said, there’s a lot of speculation about what’s going on right now though. Sinclair linked to this excellent article.
Makes sense to me. The rest of the world has pulled ahead of the U.S. in the “race to the economic bottom,” so naturally, all things being relative, the Dollar looks better. But never fear, gold bugs…America will catch up. It’s an election year, and more trash is being swept under the rug than can be imagined.
Posted in EconomyTags: Depression, Economy, Gold, Recession