Gold has hit a new high ($1540 per ounce).

These gold announcements are getting boring. At some point it will lose value and many have predicted the impending fall, but today the price is climbing and I see no reason why it should stop anytime soon.

I did a little Google search for older web proclamations that gold is overpriced. I found:

After I used the historical data for home prices…I concluded that home prices will stabilize or recover this year, I tried to study gold prices…Due to limited usage of gold, it is obvious that there are only two factors influencing gold prices: emotional and speculative…The dollar has been rising against most currencies, so the argument that gold prices will go up since they are inversely proportional to dollar does not work…read more

This was written in 2009. Home prices have not stabilized. They have continued to fall. According to ZILLOW.COM, the Zillow Home Value Index has declined $190,000 to $170,000. A 10% drop.

When the above article was written, gold was at $891 per ounce. It has nearly doubled over the same period.

Oops. I guess this prediction hasn’t come true.

 

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