The price of gold has risen substantially in recent weeks. It was hovering in the mid $900 range for quite long time but now has reached $1,100 per ounce. The increase has occurred in a rather short time. I then checked Morningstar premium service and Eric Tyson’s web site. Both of them DO NOT recommend buying gold.
Eric Tyson says “gold is a dismal long-term investment.” Morningstar points out that “the sharp gain should only remind them of how volatile this sector is because it follows a painful 23.8% decline in 2008.”
Both of these web sites suggest alternate investments. Unless you are really convinced that the United States government is going bankrupt, you will be better off investing in inflation protected securities or perhaps the S&P 500.
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