Current price of Gold

 

 

 

Whose advice should you listen to before buying or selling gold?

 

This is a good question, particularly during times of economic upheaval and rising gold prices.

Who should you listen to? Listen to the quiet, rational and informed voices that lie midway between the people beating their chests and raising their voices at the extreme ends of the spectrum.

 

Right now, in the fall of 2009, there are plenty of people saying that gold prices will rise to $2,500 an ounce, $5,000 an ounce and beyond.

 

There are others who take the opposing view, saying that gold is irrelevant in today’s global economy, and that prices will fall.

 

Also, be cautious about believing everything you read in the popular press or on TV. Mainstream media are in the business of attracting more readers and viewers. This means they tend to dramatise the news.

 

Besides which, mainstream media tend to focus on what happened yesterday...and not on what might happen tomorrow.

 

Above all, ignore anyone who clearly has a vested interest in making you believe that gold prices will rise indefinitely. Among these people are those who will directly profit from selling you gold. They will tell you a great story, and urge you to act now, before it is too late. The trouble is, they don’t really have any idea when “too late” might be, as they have no crystal balls telling them the price of gold tomorrow, let alone in a month or a year.

 

As for the sane, middle ground of legitimate experts, unfortunately you won’t find much agreement among them either. Every expert seems to have his or her own secret sauce when it comes to figuring out what will happen to gold prices.

 

But by reading the financial press and professional commentators on gold, you will get a reasonable feel for what is happening in the gold market. And over time, you will begin to form your own views and opinions.

 

You won’t always be right. But as long as you stay away from the lunatic fringes, you won’t be too wrong either.