Gold Price Graph History

Is it a bad idea to buy Gold/Silver Coin right now?

Looking at the graph of the history of gold/silver prices. Is it a bad investment to buy Gold/Silver right now? I mean if the price goes up from here(~785USD/ounce), wouldn’t that be a an bad indication the economy is failing/collapsing and so I should get some for backup/emergency situations?

Compare 3 options:

1) Buy an ounce of gold today for $779.20

2) Put $779.20 in a bank account earning 3% per year

3) Go buy $779.20 worth of Lehman Bros stock.

Wait a year. What do you have?

1) an ounce of gold ,worth anywhere from $400 to $1600, depending on inflation. If inflation is 12%, Gold will be in the neighborhood of $860. I’m betting it will be higher.

2) About $800 in dollars that have depreciated 12% in the past year

3) A worthless piece of paper.

Grandpa

Gold over $5000 per ounce – Coming Soon!