Originally Posted by jayeff

Be careful with gold. It is not usually a traditional investment device, but a kind of insurance when people are nervous. About 5 years ago when gold was around $250 an ounce I recall recommending it on a couple of boards and the price is now $650 an ounce or so.

But that advice was predicated (and still is) on doubts about the US economy (and hence about the dollar), which I believe will worsen for another 5 years at least. I think we are in for a rough ride for perhaps the next 15 years and if so, the price of gold should easily go over $1,000.

However, if something unexpected is pulled out of the hat and turns things around sooner, gold prices will decline again. So do be aware of the risk.