Thursday, 4 August 2011

Gold - Best Investment for next few years

Who in times of a recession has a spare $1,000 (or whatever the conversion in pounds is) but with the price of gold at an all time high and only getting higher as the economy gets worse then gold is the best investment at this moment in time.

From the chart above which was original taken from Bloomberg, we can see that as U.S debt increases the price of gold also increases. The question is, when will the U.S debt limit come down, but considering they just increased it and there is no solid plans for the next 10 years as far as how they will solve the debt crisis many people are predicting that gold will continue to rise for a few years to come. It is important if you do decide to invest in gold that you continue to watch and listen for plans being created to fixing the debt in America long term. When you feel it is getting resolved then it may be time to sell because a weak dollar equals strong gold but the opposite is also true.


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