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I was interested in the recent price history of Gold… so, I went to WIKI, and looked up GOLD…
http://en.wikipedia.org/wiki/Gold_as_an_investment

As you can see, had you purchased GOLD in 1980, you would have spent $641 per ounce… now, here is the SHOCKER!!!

In 2005, that is 25 years later… all the Gold you purchased for $641 per ounce would be worth $513 per ounce… so, you would have lost money after holding on patiently for 25 years… 25 years… come on people… imagine what that would have done to your retirement savings…

Yes, I know that this is 2008, and  Gold is now worth around $1,000 per ounce… but, considering the rule of 7 (doubling investments every seven years), you would not have done very well investing in Gold, since after 28 years, you would not have even doubled your investment…

This investment (going from $641 per ounce in 1980 to $1,000 per ounce in 2008) is LESS than a 1% annual return on your investment…

Yes, I know that there are “other time frames” in which this would not have been the case… where instead you would have made vast sums of money… such as from 2005 - 2008… but, I would be very very wary of such investments.

Mandrake

In today’s crazy market, should one invest in gold ?

The answer of course is well maybe

A few years ago gold was at approx $400 an ounce and now it is traiding for approx $900 an ounce.  That is more than a doubling of the price in a few short years.

Will gold double again in another couple of years ? 

Nobody knows for sure but GOLD is the only investment that has never been worth nothing.  Gold is an actual asset that used to be what our money system was based on.  If the entire monetary system of the entire world collapsed, only gold would still be worth something.

Gold is probably something you should have in your diversified portfollio.  You can also buy gold coins or gold bars that you can actually put your hands on.  There is nothing like holding and looking at a piece of gold in your own hands

Rawlin James