BrunoT

Don't Give Up on Gold Just Yet

One of the worst years on record? You sure about that?

The YTD return shown for GLD at yahoo.com was positive 3.17% until yesterday's drop off.

Then compare that to how much oil an ounce of gold will buy you. Nearly twice as much! By that metric gold is way way up.

Then compare an oz of gold to the dow. The ratio went from something like 15-1 to 10-1. So again, way way up. The Dow is down over 40%. Gold isn't.

An oz of gold also buys more house, more pickup truck, and even more agricultural commodities than it did a year ago.

Sounds to me like it's serving its role as a true store of value. Unless one went "all in" at $1,000/oz it wasn't a bad year at all.