Tuesday, April 16, 2024

Do you think gold is over valued?

December 12, 2010 by  
Filed under Silver Investment FAQ

There’s so much hype surrounding gold sales. What kind of investment is it really? Would silver be a better investment?


5 Responses to “Do you think gold is over valued?”
  1. Mark says:

    Metals are not an investment, they are a hedge; historically, an ounce of gold has been roughly the same value as a quality men’s suit, so as inflation rages, your ounce of gold appreciates, and when deflation occurs, it plummets, but never really appreciates.

    If you had purchased an ounce of gold in the year 1900, it would have cost about $20, and today would be worth almost $1,000.

    If you had bought $20 worth of Dow stocks instead, today your $20 would be worth about $4,300…

  2. manish k says:

    I think Gold continues to be hedge against Dollar and as long as there are problems in the US, Gold will continue to shine

  3. muncie birder says:

    If you were to compare the relative values of things as they are now and as they were 50 years ago, it does appear as though gold might be overvalued. The interesting speculation would be would would the value of gold have been if its price had not be set by governments at that time. The value of gold is inversely correlated to the value of government paper. At the moment there is not too much faith in the value of government paper. Perhaps rightfully so.

  4. bb23wm says:

    gold is so high now i would never invest where really can it go but down or if it does go any higher it will not even be worth it! the gold buying boat has come and gone in my opion just check those gold prices at almost a ~$1,000 now!

  5. Space Invader101 says:

    With so much US dollars being printed to circulate the dollar and stimulate the US economy, there is a belief there will be post-recession super-inflation later on. Such belief is too premature at this stage. Perhaps gold will take off 2010-11. Too early to tell.

    I generally only consider gold as a long term investment because it’s up-trending chart only make sense with monthly or quarterly intervals, otherwise there’s too much volatility.

    Some people consider gold as a commodity to hedge against inflation while others consider it a safe haven during tough times. Whether it is overvalued is a matter of market opinion.

    Silvers long-term price movement is similar to gold, so I consider it neither better or worse than gold.

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