Monday, July 18, 2011
Gold hits $1600.00!!
WOW!! Gold has crushed the $1,600.00 price level and is pushing even higher. Many people ask me why. The answer in a word is uncertainty. The downturn in the world economy, government unrest in the Middle East, natural disasters, runaway dept, all these factors and others make people feel uneasy. As a result, people buy gold and silver as they view these commodities/investments as the only things they can buy having real tangible value. How high will it go is often the next question? That depends. Investors don’t like instability so as long as these circumstances remain there will be upward pressure on gold prices. What we have seen lately is the price will shot up and then level off maybe even retreat only to shot up again with the next round of bad news. Should you buy gold? Yes, everyone should have some gold in their investment portfolio, but with these prices few are able to afford much. My suggestion would be to purchase small amounts i.e. 1/10th, 1/4th ounce bullion coins from the mint or your local deal (like yours truly). You can also purchase small amounts in the Mexican 2 ½ and 2 Pesos coins which contain .0602 and .0482 gold.