Gold up, down, and up again. Are you buying?
The price of gold has been on an unnatural high and Kipp’s wondering if you’re putting your money in it.
December 5, 2010 5:18 by Ben Flanagan
It used to be that, when in doubt about the volatile nature of the stock market, or the fluctuating real estate scene, the best advice one could give a potential investor would be to buy gold.
But in recent months, gold has been on a seemingly unsustainable high and Kipp’s written about it before. There was a slight dip in the market two weeks ago, but the price of gold is back on the rise again, causing some to fear a bubble may be building around the precious metal.
Last week, Emirates 24/7 reported that gold reached an all time high of $1,392.81 causing some analysts to be concerned. Khurram Jafree, Head of Investment Advisory (MENA), Barclays Wealth, told the paper, “There’s clearly a link between some of the fiscal imbalances that we’re seeing in the developed world and the price that gold trades at. However, the way gold has moved up recently is a bit puzzling, especially if you look at its history.”
As the demand for gold is coming from investment demand rather than end-users, analysts predict that there will not be a sharp fall in its price. In fact, Jafree also said he thought the price of gold would drop but not for a year or a year and a half.
But with the price so high, surely it can’t go any higher. Kipp wants to know are you concerned? Are you selling your gold? Are you choosing other avenues to invest your money in?
Or, like us, are you far too poor to worry about it?