Avoiding the golden mistake

[jducoeur]

Those who are nervous about the markets and contemplating pushing their money into gold might do well to take a look at yesterday's article in the Motley Fool. Suffice it to say, they make the point that, while gold tends to look good in the short run, it's generally a poor investment in the longer term. And most people are pretty bad at figuring out when the short term starts turning into the long.

Looking at it, it's pretty clear to me that gold is currently in the middle of a bubble, and getting steadily more over-valued. Piling out of one bubble into another is probably not the best strategy...

Comments

[redsquirrel.livejournal.com]

Oh, and yes, I think some of that big lump is sloshing toward gold right now. I wonder where it will slosh next when the resultant gold and existing commodities bubbles burst, as have stocks and real estate? Any ideas?

[jducoeur]

If I knew that, I'd be rather wealthier than I am now. Seeing where the herd is going to go *next* is one of the better ways to get seriously rich, but it's tricky...