So there are a lot of people, some famous, trying to get you to buy gold.. While I was in the car dealership the other day in the waiting area they had the TV playing and there was something like 10 different gold resellers trying to convince us that NOW is the time to buy gold .. “Cause the economy sucks”, “Gold is always valuable”, “I’m really famous do what I say.. “ etc..
As of this writing the price of gold is at $1120 an ounce which is an all time high. That alone should be your first indication that; Now is not the time to buy gold!
The price of Gold is where it’s at right now because of the economy and because gold sellers are driving the cost up through fear. They want you to go buy their gold so that they make money. Period. They don’t give a crap about the economy, your we being or future or any of the other BS they try to sling on the commercials. Stated simply, they are in the business of making money and they are trying to do so at your expense.
The only “winner” when you buy gold at these prices are the companies selling the gold as they will make out like bandits having sold gold to you at over a thousand dollars an ounce. You wont be saving money, instead you’ll be giving your money to these unscrupulous companies who are doing their best through fear to drive the price as high as it can go before it crashes. And it will crash. Let me explain why;
See.. Gold is a commodity and a standard. As such, it’s value never really changes. What changes is the dollars value in relation to the gold.. So when you see golds value go up, what you’re actually seeing is the dollar go down. When you have say 10 ounces of gold worth $3000, and suddenly that prices shoots to $10000 what you’re actually seeing is the value of the dollar shoot down. 10 ounces of gold is still just 10 ounces of gold.
When the dollar strengthens again (as it always does) you’ll see the price of gold go back down to something more reasonable. This is why I say gold WILL crash.. that means that the folks who purchased gold at $1120 an ounce will take it on the chin..
I’m not saying that you should never buy gold.. Actually I think gold can be a good thing to buy, but only when the dollar is very strong (and thus the price of gold is lower).