Gold ETFs
California gold nugget
The big story here was the huge increase in the popularity of gold exchange-traded funds. Gold ETFs, like all ETFs, are similar to mutual funds but bought and sold like stocks. They allow investors to quickly and painlessly diversify into gold without the transaction costs and storage expenses associated with holding physical bullion or coins.
Overall, the assets of gold ETFs increased 84% in 2009 as investors sought protection from a falling U.S. dollar and economic uncertainty.
Arizona gold prospecting
Gold Price … $3,000 Per Ounce
crystalline gold nugget
Respected analyst, David Rosenberg of Gluskin-Sheff has forecast that gold will rise to $3,000 per ounce. Unlike Nouriel Roubini who has recently warned that the risk of deflation is abating and the growing risk was of inflation, Rosenberg remains a deflationist, but still thinks gold will continue to perform very well.
Gold Investments & Delusional Enthusiasm
natural silver
Opinions these days are conjecture at best! It seems to me that the completely unexpected is now in vogue. Therefore all scenarios of eventual outcome are possible and probable. A crash in the commodities market taking gold to $700 or a monstrous run to $2000 by the end of the year both appear to have equal weight just as the US markets have shown us over the past year with delusional enthusiasm.
silver nuggets
Gold vs. Paper Money
gold nuggets
The value of paper money against gold, in the last 100 years has declined by 98%. eg. In 1910, $1,000 bought 40 oz. of gold at $25 per oz. Today in 2010, $1,000 buys 0.80 oz. of gold at $1,230 per oz.
Gold has gone up 5 times since the 1999 bottom at $250, it is nowhere near it’s peak of $7,200 (real inflation adjusted) of 1980. So gold could easily go up 6 times from the current price of $1,220 and still be within normal parameters.
So, where is the bubble? Gold? Or in the amount of paper it now requires to purchase an ounce? Plain to see for me.
