5 Reasons NOT to Invest in Gold

Reason #4: Gold Was Dead for 20 Years

For more than 20 years, the price of gold did nothing. If you invested in gold, you wasted your time. That all changed with
fears of inflation and hedge fund speculation several years ago.

Today, the church of gold is full of believers. What changed?

Nothing really except we have experienced an unprecedented upheaval in the global economy and financial markets. No wonder there
has been a flight to gold.

The trouble is that the gold rush is not likely to last. In fact, there has been tremendous resistance for gold at $1,000 per
ounce. Do you really want to buy at the top? I don’t think so.

Once the economy stabilizes and we get a return to normalcy with respect to the business cycle (in other words an ending of
the boom/bust period), gold will go back into hibernation. Demand for jewelry cannot absorb the current supply.

As such, a strong dollar is likely to absolutely destroy the price of gold. To me that is the far more likely outcome today.

NEXT: Reason #5 – The Dollar Is the Global Currency