Good point. I have been investing in gold for about 4 yrs now. Now at aprox. 900 oz. I sold some profit. My one concern is other than jewlery and some industry you what else is gold good for. Oil you can power things, food you need. This is a commodity that is realy not needed. What do you think?
I could roll my 55 gallon drum of oil to the grocery store, empty out a quart, and get a loaf of bread in return. Orrrrrrrr I could use my piece of gold as a medium of exchange as they did for about 5000 years. Beats the hell out of carrying an oxen in your wallet for barter.
I like oil also, but Gold's relationship to financials is purer. All hard assets are benefitting from the debasement of ALL currencies by politicians and the complexities of golobal trade and hedging future risk. Oil has risen because of supply constraints, but also it is a dollar denominated commodity. As the $ sinks it goes up in lockstep. Gold outperforms oil because it has not reached what I think it's FUNDAMENTAL value is which is a rather wide $2000 to 12000 range. With todays PPI, gold will go to 2000 by year end. The US dollar will sink further: Natinal defict to double by 2009 as a result of this retarded stimulous/bailout package!!!!!!