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

[metahacker.livejournal.com]

(blink)

Why would anyone buy gold *now*? It's clearly at or near the top of its bubble. I guess if you wanted to do short-term speculation before everyone starts selling their gold to buy cheap dollars; but that's a risky route.

Or do I not think like the man in the street, the one who's about to sell low and then buy high later?

[jducoeur]

Or do I not think like the man in the street, the one who's about to sell low and then buy high later?

Bingo. Sadly.