While owning gold has validity, there always is an eventual correction. I bought at $800+ in 1981 and a few years later it was worth $250. Gold speculation, like baseball cards, depends on the bigger sucker theory of someone always being willing to pay the next higher price. When the radio and TV ads are hawking gold constantly to unsophisticated masses, it is time to be careful.

Financial aid to India--thats BS US never give any F. A to India. Yes US giving out F.A to Pakistan for years in it uses for other reason than it is intended.

Yea, the price of gold triples again, then a "big" correction of a drop of 20%. The sad truth is that the big run in the price of gold has not yet begun. Wait until the Obama-inflation hits and every 401k will decide to buy some gold. You might have a collapse in worhtless paper gold, but not the metal.

Allen and Bob's comments are really interesting because they illustrate the opposing sides of this issue very clearly. It's clear that your opinion on the future value of gold stems directly from how optimistic or pessimistic you are about the US economic recovery. Obviously Allen is much more optimistic than Bob.

I'd say I probably tend to agree more with Allen, but only because Bob is so extreme. For my two cents, which is just a guess, the same as everyone else's, I'd say go ahead and buy some gold now, but I think it'll ultimately be a relatively short term play, one to two years at most, three at most. I think this because I think the US economy will be recovering by the end of 2011, and that will act to bring gold prices back. Until that time however, yes prices will probably rise steadily. This just brings us back to the question of when you think the economy will improve.

My real problem reading the comments is just how many people actually think the US economy will never rebound. Some people are so quick to panic and squawk about the end of the world and the collapse of the US into poverty and anarchy that you’d think they were excited for it to happen!! They blame Obama and corrupt politicians and financiers for wrecking the economy and claim that they want to destroy America, but honestly what do they have to gain by doing so? Once America dies so does their money. You compare these people to parasites, so just continue the metaphor, how many parasites actually kill their hosts? Not many because doing so usually kills themselves too. As for Obama, the man has two young children, how is turning the US into a third world country going to help them?

Ultimately, most comments I read are more just a sad commentary on people's depression and anger about the times. We all need to keep in mind that when Obama launched his bail out plan last spring, he, and most experts, said that it would probably take about 18 months to tell if it was working. It has now been about 9-10 months, yet people are quick to point out how the plan has already failed. Given the global economic climate of continued patience, for instance the agreements out of the G-20 yesterday that global economic stimulus will continue, I don't think there's any harm in waiting to see what happens over the next 8 or 9 months before beginning to stock pile food, ammo, and species.

Go ahead buy some gold if you want, it will probably pay pretty well over the next few years, but just bear in mind those returns will diminish as the global economy rebounds.

Oh, and teeball, that’s a great point about the rice and beans, hahaha, very clever!

I would never buy paper gold, if you mean certificates (not futures), because there is too much fraud potential, and happening now. Better to take physical possession as a hedge, or buy gold stocks or funds invested in mines and metals companies to ride the gains.

Lance Manly--Obama has nothing to gain from the US becoming third world. But a socialist/collectivist nation is another thing. Every major socialist/communist nation has reduced 99% of the population to an equally miserable economic level while the top 1% politically favored ruling class enjoys great wealth and privilege and floats over the top. The middle class is gone and ordinary people have no chance of climbing the economic ladder to enjoy the rewards of their work and ambition. That is why the Obama daughters have no worries.

John,

I understand your point about how socialism would benefit Obama, but do you really think that is even a reasonable concern at this point? I completely get how the recent government controlled bailouts and ongoing healthcare reform debate would make anyone but the most ardent leftist concerned about socialism. The thing of it is though, regardless of what people may think of them, the republicans will never vote for bills which are going to turn the US into a communist/socialist country. We saw this past weekend when the healthcare bill passed the house by a five vote majority, I believe the vote was 220-215, and only 1 republican crossed party lines. Even though the bill passed, Senate majority leader Read has already come out and said the bill will likely not be voted on until next year and, further, will look much different than it does now.

I only chose to discuss this particular bill because it strikes me as the most socialist thing facing the US now. Regardless of what one thinks of the bailout, I firmly believe that a large surge of government money was absolutely needed and justified to save the financial system.
If you doubt this, just consider the approach that Republican Herbert Hoover used during the beginning of the Great Depression and the devastating consequences which it caused.

Anyway, I just have a hard time getting too concerned about socialism when the Democrats have such a slim majority in both houses, and honestly, I think government intervention is necessary in times when the private sector either fails, such as recessions and depressions, or is insufficient to deal with the crisis, such as during large scale wars.

Thanks for the intelligent reply. Let me know why you think socialism is an imminent danger with the Republicans still around.

Considering how valuable Gold is in the electronics industry and as a chemical catalyst I'd say this reporter needs to do a little more research.