Tuesday, January 12, 2010

Gold price increases


Gold goes higher as the dollar drops. This is not news. However, many are telling me that gold is a bubble. Well, back in 1929 gold was $20 an ounce. A new car was $500. Therefore you could buy a new car with 25 gold one ounce coins. OK last year gold was $1000/oz and if you sold those 25 gold coins you have $25,000 you can still buy a new car. The dollar went down, not gold went up.

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