Don’t count on gold in a downturn

The way the price of gold keeps rising, a person might think that no matter what the downturn, gold would prove to be a good investment. I think that if things don’t fall apart too much, gold will be an OK investment. If things really start falling apart, though, it is not clear that gold will work nearly as well, especially if we expect gold to function as a currency itself.

If things don’t fall apart too much

If we keep teetering on the edge, but our current financial system remains in place, gold seems likely to be a good investment–whether it is coins or gold bars, gold shares or exchange traded funds. People are frightened, and because of this, seem likely to keep bidding up the price of gold for some time to come. Continue reading