Gold is This Year’s Bubble

Gold is this year’s bubble and historically has been a very dangerous investment. It has very wide swings in value and could go down as quickly as it has gone up. Look at the last big swing as an example. At the beginning of 1977, gold was at $100 per oz. Three years later at January, 1980, it was nearly $700. It looked like a sure winner. There was a bad recession, a bad stock market, lots of inflation and everybody ran to gold because they were afraid and because they were greedy. It stayed there about a year and then collapsed. By late 1982, it was $300. It had dropped to less than half in just over a year. Gold turned into a disaster not a sure winner. Many people were hurt. During the next twenty years, it touched $500 twice briefly and then immediately collapsed again. It did not hit $700 again for over twenty years. In 2001, it was down to $275.

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