Is it good to buy/invest (in) gold with the current status of our economy? ?

Yes I would with the way prices are.

Keep in mind solid gold is not liquid, so you probably want gold mutual funds.

Yes. According to Howard Ruff, gold has been depressed by the dumping of commodity funds and gold contracts by investment firms/ funds etc that had to raise cash to remain liquid. Once that is finished, gold & silver should take off to new highs. Physical gold & silver has been in short supply for some time. You might have to resort to buying online to actually find some. I did. The mint actually quit selling gold and silver eagles for awhile this year because they couldn't keep up with demand. It will always have value and you can sell it at your local coin shop if you want to sell any. I paid someone who did a home repair for me in gold.

Not right now. When the economy is sluggish, the price of gold rises, and the dollar falls. Right now you will pay an outrageous amount for gold. That is why we keep seeing all these companies advertising, trying to sell it to you. The time to buy gold is when the economy is doing well. The whole point is to buy low and sell high. Right now, if you want to buy low, look to financials.

Gold is a hedge against a major financial accident or runaway inflation. If you think that either one is possible, you should own a little gold. If you think they are likely, you should own a lot of gold. Traditional asset allocation is 5% in gold under normal conditions. If you look at physical prices (not futures or ETFs) they have held up amazingly well lately when everything else is getting dumped. I doubt we will see them go much lower for very long. It is difficult to even find bullion coins in much of the USA and premiums are at an all time record.

I wouldn't, personally, just because it's at a 20 year high right now. I would wait until the price drops back down a little. I think you should invest in a good mutual fund that has been around for a very long time and has shown profits in past economic turmoil. Eventually things are going to turn around, and those who bought in when everything was cheap are going to make a lot of money. If that's still to risky for you, then go with savings bonds or find a good CD.

Personally I wouldn't buy gold because in my opinion gold's price (at least in U$ Dollars) has been the cause of trading "paper gold" by investors who wanted to hedge against the Stock Market.

In 2000, gold was around $300 by 2005 it went up to around $500, within 6 months it shot up to $700. It stayed around that price (with the occasional ups and downs) until the end of 2006. In just a few months it shot up to $1000 in the beginning part of 2007. It has fallen since that time.

In 1979 the price of gold peaked around $750 with a similar run up in the prices. Looking at the charts, 1974 - 1979 looks almost identical to the years 2000 - 2007.

In my mind it seems that people who bought 2003 - 2007 are now selling their gold. The US Mint in September announced that they were halting sales because they ran out yet gold hasn't "skyrocketed". That means in my mind that the physical sales of gold didn't have to do anything with the ramp up in prices in the past few years.

Just like I believe that the price of oil was due to the speculators/investors and not the true demand of the product I believe the price of gold will go down further. Demand for oil has dropped 5% but the price has dropped almost 60%?

Looks like the "smart" investors have already reaped rewards.

Kitco.com's gold chart from 1833 to Present shows that until gold was disconnected from currencies, around the 1970's, the price was fairly the same for about 130 years. After the disconnect, the price in Dollars has fluctuated much like the ups and downs of the Dollar, not the actual value of gold.

If I'm told "Put your money where your mouth is", well I make gold teeth so the price of gold is very important to me and my business.

Sure gold prices have gone up today, but they were around $800 a few months ago too. Check the charts out.

But hey, maybe I'm totally wrong and the price of gold will go to $10,000. In that scenario I believe that it will be because of inflation so it really doesn't matter because the exact same amount of anything you can buy today with $800 will be what you can buy for $10,000 in that future. It's not going to be like gold is $10,000 an ounce and McDonalds will still have their Dollar Menu.

Yes, in general. I think it's a good idea to have at least a small part of one's portfolio in gold and this is a good time to get in. Prices have come down from recent highs and demand will only increase.

Keep in mind you could buy gold directly, or stocks in gold mining companies.

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