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Tuesday, September 16, 2014

90. Should I Invest in Gold?

Apparently, Warren Buffet and Dave Ramsey aren't big fans of investing gold. I figured there had to be a good reason for this. 

So I did a little research this today... Here's my findings:

The all-time high for gold was $1,888 in August of 2011. The trend is for it to go down in value since 2011. September 15, 2014 Gold closed on the New York Stock Exchange at the price of $1232.70. The high over the last year has been 1382.00 and the low has been 1187.00. I guess gold is a good buy if you think it will start a positive trend in the near future. Personally, I seriously doubt it will ever hit $2000. See:

The S&P 500 index took a plunge in 2008 at 683.38. However, today the S&P500 opened at 1981.93. 
The trend for the S&P 500 index is upwards. Of interest in the last 10 years the S&P 500's growth rate is 78.02%.  See:

Personally, based on the data I don’t think it likely I’ll buy gold. I'd consider good investments mutual funds, 401ks, and Roth IRAs. Perhaps in a few years I’ll buy a gold bar if I’m wealthy enough and put it in a safe place. It doesn't seem like a good investment

What do you think? Would you or have you invested in gold? Do you plan on investing in gold in the future? Leave a comment!