20th July 2010
You know what they say. When the shoe-shine boys start telling you to buy something, it's time to cut and run because the market has surely peaked.
That and last month's report in the Times that the Rothschilds are joining the smart set by buying bullion again.
So we can't say we weren't warned.
Although, whether gold is a buy has created a lot of chatter on the community boards.
Take DiggerUK on the Moneysavingexpert.com board entitled 'Big dip for gold?'. He says: "After dropping from 860GBP to 790GBP an ounce in under a month, I think it quite possible that bargains in the yellow metal are still to come."
But as sabretoothtigger replies: "Price is not value. The reasons to buy gold is probably opposite to an average persons interest and belief in it."
Fredn on The Economist site, commenting on an article about 'Gold: After the gold rush', ponders the value in the price too, using inflation as a marker: "Gold's value in essence simply reflects one's expectations for inflation.
"If the supercharged running of the monetary printing presses in the US, UK et. al does not concern you as being a harbinger of inevitable major inflation – sell gold.
"If because you cannot eat it ,wear it or drink it – sell gold.