Gold hits $1000

[Buzzard]

Got your gold yet?!

Well, what most credible analysts have said for years, gold has finally hit a thousand bucks. When I started paying attention, it was around $275 - $300. I doubt there's much in it's way either for a few years----$2000 perhaps? Gold fever might start soon, now that this psychological barrier has been crossed.

http://www.financialpost.com/story.html?id=372841

[troutman]

Goldmember: I love gooooooold.

[jam26]

I was covering the industry as a reporter for a small daily in 97 when gold was at about $275/ounce. There was so much doom and gloom surrounding the mining industry at the time. I really wish I had the foresight to buy all the gold I could afford (not much, in a reporter's salary).

I wonder if silver will follow. It's moved from about $14/ounce to over $20 in recent weeks.

[MoneyGuy]

Don't you guys worry that you're coming to this party just a little late? If you look at gold's historic performance, for decades it follows a trend line of close to nil performance, then it spikes up and eventally falls to below the trend line. Over the very long term it's basically given no performance. This may be one of those spikes. What goes up must come down.

[Top Shelf]

If the American dollar keeps tanking, which it looks like it will in the foreseeable future, I can see investors continue to move to gold.

But yeah, it could just be a huge commodity bubble due to the rapid devaulation of the US dollar. Gold, oil, silver, platinum, wheat are all at or near record highs. Everyone looking for a hedge against the dropping dollar.

[Bobblehead]

It is the fears of inflation that are driving this.

Bond markets are also showing markets believe Ben Bernanke is willing to keep interest rates low in attempts to attempt to keep the economy moving, but that this is at the cost of allowing inflation to take hold like it was in the late 70s.

Gold has traditionally been considered a hedge against inflation, so as inflation worries go up, so does the demand (and price) of gold.

[Buzzard]

Originally Posted by MoneyGuy

Don't you guys worry that you're coming to this party just a little late? If you look at gold's historic performance, for decades it follows a trend line of close to nil performance, then it spikes up and eventally falls to below the trend line. Over the very long term it's basically given no performance. This may be one of those spikes. What goes up must come down.

I take it you don't have gold.

[MoneyGuy]

Originally Posted by Buzzard

I take it you don't have gold.

Actually, I do, but I do it differently than most people. Limit your exposure to a very small part of your portfolio as you would with any risky sector investment. An aggressive investor might put 5-10% into each of these: gold, technology, health care funds, resources and emerging markets. That gives you 25-50% invested aggressively - pretty bold. I see people take 75k of a 100k portfolio and buy gold and lose most of it, then they go out and buy some other flavour of the month hoping to recoup their losses and lose again.

BTW, gold is a hedge against disaster. If you think the world is going to HE!L, buy gold. I don't think that.