2007-10-31 18:01:38 · 2 answers · asked by suckapunchyoface 2 in Business & Finance ➔ Other - Business & Finance
Demand, pure and simple. When the economy is humming and the dollar strong, people don't worry about diversifying and buying gold, so gold tanks. When the economy goes down, and inflation goes up, gold becomes more attractive.
Over the long term, gold and silver really makes a terrible investment. I remember my dad buying a gold Kugerand for $800 in 1980. Gold is just now at $800 again. If gold were to keep up with inflation, gold should be worth over $2,200 an ounce. Stocks and real estate have probably increased 5 to 10 times over their 1980 prices.
Stay away from it, until the next economic bubble times, and gold has gone down in value by 50%. Then it makes sense for when the bubble bursts.
2007-10-31 18:10:27 · answer #1 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
For common dates, the price of the metal.
2007-10-31 18:09:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋