Why is it that on every discussion about gold, there are mutterings about conspiracies, disasters, the flight of confidence from evil governments?
Just because gold has been used since Croesus as an impartial store of value, it does not mean that it always is. Most of the time (mid 19th century, last 25 years of the 20th century) the POG slumbers.
However, sporadically, gold wakes up and belatedly makes up for lost ground. When it does so, it usually overshoots.
In discussing gold we should be more dispassionate. John Paquet strikes the right note by reminding us we should not be day traders. But, IMHO, not weekly or monthly traders either. Just put it away and expect a reasonable return (say 20% per annum) over a 5 year period - and, at the same time, possessing good insurance against those dire events that some of us here have been forecasting. |
