Well, I think it makes sense to have gold as part your investment package. I think keeping a small amount is smart. People who had gold prior to the record high prices are probably very glad they did. Used wisely I think it could be a comfortable hedge if paper currency got rapidly devalued. I know it has to be in a certain format to be used as part of an IRA though.
Charts on Gold and GLD among other commodities such as Silver, Oil, NATGAS etc will be now posted on my new twitter feed SaharasCharts
I am not good at this but I do think that gold is a good investment because the value increases with time. Though one should put only a certain percentage of his/her money on it, not everything. I have a friend who used to invest in physical gold way back in the 80s and she said she was able to earn a reasonable amount when she sold them years after keeping them. She said, she felt like she hit the jackpot when she sold her gold.
Rate hikes in US and European market started, Gold will remain hot, because, European and American forex reserves hold above 60% Gold. buy Gold in dips after rate hike,and sell before next Central Bank meetings (EU, FED, BOJ,BOE) until stock market and Crude don't create strong bottom. Gold is strong buy. at current stage, I am watching, Crude will not recover for next 5-6 years, because of political instabilities.Crude will follow limited range for next 5-6 years. Gold is hot pick in commodity.
Yes, it is a good idea to invest to Gold. The Gold prices are skyrocketing. Many times, the Gold prices get lowered, but it is just for a few months, it is estimated the Gold prices rises from a some 6-7K to 29-30k in the past 20 years in India.
Gold does not seem to offer the same level of hedge that it used to. We have conflicts emerging in many parts of the world just now but gold has not really reflected the perceived increase in risk. Is that a fair assessment?