Gold should not be viewed as an investment but as a hedge against inflation. It has dropped recently because so much money is being poured into the stock markets to make a quick buck while Ben "Gutenberg" Bernanke is cranking out the QE.
But monetary policies around the world [the currency wars] underline the wisdom of owning gold for the longer run. Paper money will begin to collapse at some point when people lose confidence in them as a store of value.
No telling when that will be, but at the rate they're being printed one might think sooner rather than later.
What does it tell you that gold is flying solo this time around? Copper still strong. Oil still strong. Equities strong. But gold dead.
What does it tell you that gold is flying solo this time around? Copper still strong. Oil still strong. Equities strong. But gold dead.