I continue to think that gold is overvalued and that the gold companies are making a killing on the fear of what might happen in the future. The stimulus pumped a ton of money into our economy and that money had to go somewhere. I think it has gone – at least partially – into gold. Even if the economy crashes, I’m not convinced that gold is your answer to security. How would you trade an ounce of gold for goods and services? The only way gold can be valuable to purchase goods and services is if it is converted into some other type of currency – we are not setup to trade on precious metals.
I understand many of my friends will disagree with me on this. I just don’t see gold being workable as a practical solution should the economy crash.