Is Investing in Gold a Wise Decision in Uncertain Economic Times?

[tumor]

Goooooold!

Hey people! I need you opinnion:
I bought week ago 10,000 $canadian dollars(all my savings) worth of gold,small bars,
you know in case something bad happenes to the economy or Bush starts new war with Iran etc.Was that a good idea?or am I stupid idiot?
I have to tell you guys when they gave me those bars(18 of them) at the bank I was mesmerized by the color and then quickly went home and played with them for couple of days, GOLD MAN!
Of course now I store my precious gold at the bank in safety deposit box.

 

[Evo]

Hey people! I need you opinnion:
I bought week ago 10,000 $canadian dollars(all my savings) worth of gold,small bars,
you know in case something bad happenes to the economy or Bush starts new war with Iran etc.Was that a good idea?or am I stupid idiot?

That would depend, was gold selling at a significant low at the time you purchased it?

I remember when the Hunt brothers artificially sent the price of silver through the roof, there seemed to be no end to how high the price would go. So many people bought silver bars and then lost everything.

Gold is much more stable, but not a great investment. You will not see any short term gains, nor are any substantial gains likely. If you bought low, you might not lose much.

Edit - For you youngsters that weren't born before the great silver debacle, here's a brief overview. Yeah, my brilliant ex bought silver right before the decline (against my advice), I mean, what the heck did I know, right? I still have them, hey they might be collector's items one day. One is stamped with the Watergate bug.

http://www.buyandhold.com/bh/en/education/history/2000/hunt_bros.html

 

[Gokul43201]

Gold is a safe haven during extremely uncertain times. If you see the elections as a time of high risk, then putting your money in gold might be reasonable.

I assume you've done your research. I haven't lately checked a valuation of the markets with respect to say, the 10-year Treasury yield, nor have I been following the VIX in a while, so I'd better stop here.

 

[Evo]

For anyone thinking of investing in gold. Here is some information on daily trending.

However, don't buy into the sales pitch.

http://www.usagold.com/DailyQuotes.html

 

[tumor]

I'm really affraid all this paper money won't be worth anything soon,first; this huge US deficit,debt,spending out of controll, high oil price and wars in m.east can make investing in gold or silver v. good idea right now.
thanks evo for the link.