Gold closed at $999 on Tuesday. Then, yesterday, it closed down $2.
There’s a time to buy gold; and there’s a time to sell it. Which time is it?
The question rose with the gold price itself. It needs an answer.
The price of gold today, adjusted for inflation, is about where it was 26 years ago. After peaking out at nearly $2,000 (again, in 2009 dollars), in 1980, the price fell to the $1,000 level (in today’s money) in 1983.
We were gold bulls back then. And we were idiots. It was the end of the gold bull cycle, not the beginning. The gold price fell for the next 17 years.
Some people draw the wrong lesson from this experience – that gold is always a bad place for your money.