September 24, 2010

Gold Hits $1,300 / oz

Long while ago I made the prediction that gold had hit a high (in my opinion) .   I was proven wrong in that prediction and gold went on to exceed that level.   Now today gold hit a price over $1300 an ounce which is the first time ever it has hit that level.   It closed a little lower than that but during trading it did exceed $1,300.

I still think that gold is not a good long term investment.   You can undoubtedly make some money by speculating on gold in the short term if you're lucky and it booms a little longer.   Of course you have to time the market right and that is not easy to do.   But I still think that inevitably the price of gold will crash sooner or later.   The price of gold could easily come down 30-40% within the period of a year or less.    That means if you buy today around $1,300 then it crashes 40% it could be under $800 within 12 months.  

When will gold peak and what price will it hit at the peak?    I'm not going to go out on a ledge and predict gold prices for the future.   I tried that already and I was wrong.

Photo by tao_zhyn

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