Gold is currently in a bull market. Adjusted for inflation, the price of gold should be around $2500/oz, and those are the government's numbers. The debt ceiling legislation that Congress recently signed off on priced gold at $2200/oz (at $15 trillion)
Anyone who tells you that gold is a bubble is simply not invested in gold and/or doesn't have a clue about markets & financial history. Those who have invested in gold since 1999 have enjoyed a 25% annual compound return that beats any asset class in the world, including:
- US Equities (Dow, S&P, Nasdaq)
- Chinese Equities
- Emerging Market Equities
- US Bonds
- Global Bonds
- Municipal Bonds
- US & Global Real Estate
- Currencies
Gold is just common sense. It's main competitor is the Federal Reserve who even its Chairman has stated publicly that the goal is to devalue/debase dollars. When you put all your cash in bank accounts you're essentially positioning yourself as being: Long US Treasuries and Shorting Gold (in addition your bank cuts your deposit by 90% as they're allowed to get away with this using current Fractional Reserve laws).
At the end of the day the market will determine which holds more purchasing power and gold has won the debate. Critics of gold will continue to cast doubt and jealousy as the price of gold soars to new historic highs this decade.
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