Today it is as difficult for a person to fathom gold at $5,000 per ounce as it was for a person to fathom $1,000 per ounce back in 2002. After all, hold a Krugerrand, in your hand and try to imagine it being worth the purchasing power of $5,000 - enough to buy a good running, nice looking used car.
Dollar predictions of gold are naturally what a prudent investor considers - today’s Internet articles find predictions ranging from "headed back down to $500" to "heading up to $6,500 in the coming years". I must admit, I have been caught up in it since I jumped in [when spot gold was] at $395. But recently, I have been of a different mindset. Forget about dollar exchange; that will only confuse the issues. The way to fully understand and appreciate the value of gold should be / will be in it’s ability to exchange for goods and services. Read More