Where is Gold Headed

Today my barber told me that he recently bought 425gm of gold and then sought my opinion about where the gold prices were headed. Because I don’t have any money to buy gold, I guess I am the most qualified person to tell people what to do with their gold!

Here is a graph from GoldPrice on how the gold prices have performed over the last six months.

Gold has gone up from $28/gram to $34/gram in just six months! Thats a 6-month return of about 21%. Considering the riskiness of gold, this is a phenomenal return! I also read a few articles on the Internet to see why gold is going up. There are mainly two theories: 1) Becasue US Dollar is going down, and 2) Because people are expecting a major catastrophe because US Fed has been printing money all along. The general feeling is that even at this high price, gold is good long-term investment. I agree…now only if I had the money to buy some!!

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