Au, Stop Buying Gold
Only two years after gold reached its highest price in years, the price is falling fast. Since late 2011, the price of gold has fallen 17 percent, a decrease of $28 to $1,558 an ounce. Considered the safest long time investment of all, Wall Street analysts have noted that prices have dropped so fast that they are saying the golden age of gold has come to an end because the last time its price dropped so low, which was during the 1980s, it took 30 years for prices to recover.
Although some might ask what went wrong, in fact, the question ought to be what went right. It’s only natural that gold prices decline after an astonishing 650 percent rally from August 1999 to August 2011. Hedge fund managers and normal savers all gathered to gold during the financial crisis, but now that we are recovering from the recession, “things are looking up for the economy and, as a result, down for gold.” For a generation of investors, the golden age created a false image that the price of gold would always be rising.
Written by Kevin Zhang
Source:Popper, Nathaniel. “Gold, Long a Secure Investment, Loses Its Luster.” The New York Times. The New York Times, 11 Apr. 2013. Web. 11 Apr. 2013. <http://www.nytimes.com/2013/04/11/business/gold-long-a-secure-investment-loses-its-luster.html?ref=business>.