More Opinion by The Springboard

THE UPRISING OF THE AMERICAN PARTY "Clearly the voters are engaged right now, at least for sure on the republican side, and what they have concluded is that the republican party has not done their job. Thus, Donald Trump gets their vote."

Thursday, December 3, 2009

IT'S JUST ABOUT TIME TO RUN FROM GOLD

It's been a couple of times now that I've read somewhere, or overheard someone shouting that gold is heading for as much as $5,000 an ounce, and I can't help but think to myself that I've heard all this before. Say, back when oil was playing with $160-$175 per barrel. I remember hearing then that oil could reach as much as $500. The reality is that long before gold can ever reach such heights the bubble (and that's exactly what it is) will burst. As with anything money, there's a resistance.

Right now the dollar is in a world of hurt. The economy has still not fully recovered. Jobs are still not stable. Credit is still unavailable to a lot of people. Those facts fuel the surge of people (and nations) heading into gold as a way to hedge against a tough market and hoard cash. Just like I spoke during all the hype about oil falling like a brick, it did, and so will the price of gold. Realistically I think we can see $1,500-$2,000 an ounce, but much higher than that just seems unreasonable to me. And by the time it would reach that, I think an improved economy will already have worked to fade some of the interest in gold investing.

For me, when it gets a little far fetched, that's when it's time to get out.

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