In March 2008, the gold price exceeded US$1,000, achieving a nominal high of US$1,004.38. In real terms, actual value was still well below the US$599 peak in 1981 (equivalent to $1417 in U.S. 2008 dollar value).
Performance History: On August 22, 2011 gold reached a new record high of $1908.00 at the London Gold Fixing but it is still well below the 1981 CPI adjusted price of $2,395 in today's dollars. It means it even has not returned the rate of return to match inflation. Gold was also in major downtrend from 1981 to 2000 for 20 years!
Gold is now in strong uptrend from 2000 but the question is who knows that history is not going to be repeated and we may be close to change in the trend! Please don't take me wrong. I am not telling you that Gold is bad investment but just want you to urge to have some precaution when you buy a gold. Remember, everything goes down which goes up.
I can still remember the greatest quote of Warren Buffet: Be greedy when everyone is fearful and be fearful when everyone is greedy. Today, everyone is talking about buying Gold!
Cheers,
Rashesh Bhavsar
Financial Planner Melbourne
566 St. Kilda Road, Melbourne.
Call today on 03 9018 5534 or send an email to info@fortunewealth.com.au to book a free financial consultation (valued over $660) to find out your personal wealth creation and wealth protection plan for you and your family.
Source: http://en.wikipedia.org/wiki/Gold_as_an_investment
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