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Gold didnt last long at its peak

StockMan69 said: "[quote] After hitting a record $1,030.80 on Monday, gold sank to a a one-month low of $904.65 during Thursday’s session, as credit risks appeared to recede and the dollar rallied.[/quote] What a quick top."

placer7 said: "There have been five recessionary periods since gold was released from its price peg in 1971, on the basis of the NBER definition. Two have each lasted 16 months, namely November 1973-March 1975 and July 1981 - November 1982; two have been of eight months' duration each, from July 1990 - March 1991 and March 2001 - November 2001; the fifth was just six months from January to July 1980. There has been no clear pattern in gold's price performance. Between November 1973 and March 1975 it gained 88% and in the second 16 month recession it rose by 7%. In the first eight month recession the price declined, as it did in the six month recession in early 1980 while in the recession following the bursting of the dot.com bubble it"

prohobo said: "Regardless I continue to buy a little every month (have been for years). I don't really care about the price as much as having it on reserve as an alternative forum of currency. No matter the price - it continues to outpace REAL inflation by huge amounts. Again - I never look at it as an investment - but rather an alternative form of currency (savings) - don't care if it is $300 or $1000. I just continue to buy a little each month. (coins). Maybe I don't have the confidence in the fiat (faith) currency that most Americans seem to have. Cause Bernanke has not defended the dollar that is for sure."

cashlover said: "Gold has been considered money for thousands of years. Only in recent times are we using fiat money, and it's just not working out. I'm talking inflation here. Some day we'll all realize the value of gold, which serves as the perfect money. It's only common sense. Gold will some day be extremely valuable again when the world comes to its senses that fiat currency is subject to government manipulation and that gold is sound money."

prohobo said: "[QUOTE=cashlover;70046]Gold has been considered money for thousands of years. Only in recent times are we using fiat money, and it's just not working out. I'm talking inflation here. Some day we'll all realize the value of gold, which serves as the perfect money. It's only common sense. Gold will some day be extremely valuable again when the world comes to its senses that fiat currency is subject to government manipulation and that gold is sound money.[/QUOTE] +1 That is the reason I buy a little every month. Remember this! This country has a fiat (faith-based) currency. No nation in the history of civilzation has devalued themselves to prosperity! (which is what we are doing with the recent cuts in rates and printing more money). In the history of civilization no fiat currencies have ever lasted! EVER! Think about this - would your rather take a 1860s one ounce gold coin or the equvilant in confederate dollars at the time? Regardless of where gold value went afterwards - it still had value - what are the confederate dollars worth today? The only reason the dollar has any value is because you BELIEVE it has value. When everone agrees that it has value then it CAN be used as a method for barter. However - when a powerful group of people loose confidence in the fiat currency (which we are currently seeing) we begin to see inflation and it only grows more and more. At a certain rate - the currency becomes worthless. Then a devaluation - like the New Peso. Don't want that now do we?"

akhanna01 said: "although after hitting the high of 1030$ per ounce ,the gold have come down a bit but still it is a very good investment opportunity to get into gold as the future prospect is very healthy ."