Originally Posted by Bilbo Bagins
The last 10 years WERE great. I bought three gold eagles in 2002 and 2003 when it was under $320 an ounce. Sold two of them in 2008 for a hair over $1000 when gold spiked at $ 1084 and started going down, then the 2008 crash happend and gold spiked again and I so sold the last ounce of about $1700.
That is how I profited with gold. Pure luck buying low and selling high. However, I would have made money buying Apple Stocks around the same time, because 10 years ago Apple sucked and the stock were cheap and now look at them.
What if you had bought Kodak instead?
The problem people are having is everyone is screaming "Buy Gold" and the ones who are making money with it are the ones selling it. How do you expect to turn a profit when you are buying ANYTHING high and selling low. Those who bought gold at +$1700 are finding that out the hard way right now.
When the hype dies, eventually the price has to come down to normal market levels. That is with Housing, stocks, oil, and even gold.
What you don't understand is it isn't hype, it is a worldwide rejection of fiat money. Central banks today are still buying gold like crazy. You must have great faith Obama is going to fix everything.
The recent PM drop is because the dollar is temporarily rising from people fleeing the Euro.