Tuesday, October 6, 2009

"SOLID GOLD"

Today was a golden day. The price in US Dollars for an ounce of gold on the "spot market" hit an all-time high today at $1044.80. Generally when a stock or metal hits an all-time high in price it tends to go higher as it has "cleared resistance" meaning that anyone who has purchased in this case gold in the past is now in a profitable position. A while back I submitted a "blog" post called "Hi Ho Silver" urging readers to consider adding gold and/or silver to their investments. I hope that some of you looked into investing in precious metals since then.

There was further talk about replacing the US Dollar as the world currency with a basket of currencies for trade and pricing oil. The rise in the price in gold is probably due to the decline in purchasing power of the US Dollar relative to other currencies. The US Dollar is not worthless but is becoming worth less thus it takes more US Dollars to buy an ounce of gold among other things.

Although no investment generally moves up in a complete straight line; gold today has " broken out" with today's new high price. Gold is "solid" whereas paper money can crumble or " burst into flames" as it continues to depreciate in value.