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Plunging Gold Prices - Perils Of Gold Investing

Friday, December 20, 2013 - 5:30 AM
From USA Today
The price of gold got hammered Thursday, as the yellow metal fell $36.20 to $1,195 per ounce, the lowest since August 2010.

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I looked back at some old comment. Here's one comment in the article that reviewed what would happen if the U.S. defaulted on its debt:
If you are not buying gold an silver now you better. Because the dollar is going down.
It's yet another example of being overconfident about gold investing and lacking confidence in the U.S.
6
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Friday, December 20, 2013 - 6:28 AM
There is nothing wrong with having 5% or less of one's portfolio in gold strictly as a holding of 'last resort'. Securely store it and then forget it. Only when becoming an active investor (speculator) in precious metals does the extreme volatility of such assets become apparent and can lead to an unhappy result.
5
ShorebreakShorebreak2,696 posts since
Apr 6, 2010
Rep Points: 14,620
2. Saturday, December 21, 2013 - 7:09 AM
It is not whether one should buy gold (or preferrably gold fund) or not, but the drastic fluctation nature of gold makes it a less desirable investment tool for the long term; for many conservative investors.
2
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
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