What Price GoldSubmitted by jimt on Mon, 03/17/2008 - 07:52
Over the last 7 months at DP many excellent post on the topic of gold and silver. However I just want to suggest that when thinking $3,000 or whatever thousand dollars the price for an ounce of gold becomes to much ask yourself what that ounce of gold will buy.
We have to remember that gold is an international money and that the world is invovled in determining how much is to much for the price of gold. Do not think in terms of what you are comfortable paying for an ounce of gold here in the states.
Many people will start looking at historic ratios between gold and other commodities for some guidance however all commodities in the 21st century are finding relative new price structures as the international community is now 7 billion plus people and not 1 billion as it was at the turn of the 20th century. It is a new world.
Good luck and protect yourself.