Quote:
Originally Posted by will76
That is not the case, it is not the same as the early 2000s. In early 2000 when gold was $400 oz it had been around that price for a long time (20+ years, see chart below)
The time to buy is before the spike, not at the peak. If anything, that chart shows us there should be a decline or correction in the near future for gold. Same with silver.
If you bought gold in 2000 then you timed it great. It had been the same price for a long time and you bought it before it shot up. You are NOT doing the same thing right now with gold or silver, you are buying it after it has exploded in price over the last years and even more so over the last 2 years for Silver.
Here is silver (just through 2007)
Last 10 years:
It was $6 oz as recent as 2006, with a few ups and downs it is now at $30 oz. Look at what it did around 1980. If you buying gold or silver right now not only are you buying at historical highs but you buying right after huge spikes, odds would tell me that those prices will come down some. Now would not be the time to buy imo. Unless if you like to buy stocks high and sell them low, then sure go for it. |
I can see what you are saying Will, but in the case of buying gold and silver it's not a matter of peaks and lows, it's a matter of reading the economic events and conditions that are associated with those highs and lows.
The thing is that gold and silver haven't really gained or lost that much true value over the years ... right back to Roman days. They buy you roughly the same resource worth as they have throughout history, it's only the value of fiat currency that has changed.
Basically the more fiat currency you print and the more unstable your currency seems, the more people are going to try and protect their wealth in the stability of gold, or to a lesser extent silver.