Glen L.

Does Gold Beat the DJIA? It Depends

tiananman says it best, I think. The point about gold being illegal to own, except by governments, is salient. In the last couple of weeks I've had an email argument with this guy who thinks I'm an idiot for believing gold is worth more than $42/oz, because that's what the central banks and IMF say its value is. That price is obviously a vestige from the fixed price days prior to the re-legalization of private ownership; after that, the law of supply and demand and the fear factor took over, and I think the current trading range of about $850-1000 is very rational, at this point. When (not if) serious inflation rears its ugly head, the price will soar, since gold is denominated in dollars.