All that glitters...

[Vanraw]

Im like you. Jump in at the top and ride it down!! I for one am not betting either way. But if I had to guess, I would say that Gold is close to its peak right now. However, while gold is at a high, inflation adjusted price of its peak in 1980's is like $2200 in today's dollars, so half of what it is at today. However, when I like at historical inflation adjusted graphs, its just a blip in the graph. Meaning as fast as it went up, it went down. That smells funny to me, and if people are counting on a blip, or trying to manipulate the market into a blip, then I'm staying away.

As I understand it (I would like to hear from Breand as well), conventionaI wisdom today is that when the federal reserve prints more money / pumps more money into the economy, the value of the dollar decreases, and in turn the price of gold goes up.

My understanding is that the reverse also holds true. As the dollar strengthens, then the price of gold will drop. So for me, I ask my self what do I think will happen the next year. Will the fed print more money, or work towards making it stronger. I think they will not let the dollar get much weaker. Therefore, I think gold will not go much higher.





Here is the price in inflation adjusted dollars.