Headline: Gold $3,000?
Commentary: If gold is like the Nasdaq, it could go up 60% from here
While I’ve been on leave, gold has surged from around $1,500 an ounce to nearly $1,900. And the investing world has finally started to wake up to the inconvenient facts that (a) the U.S. government is broke, (b) the U.S. political system is broken, (c) Greece is bust, (d) Portugal and Ireland may well be bust, (e) Ditto Spain, (f) Maybe ditto Italy, and (g) the European political system is broken as well.
It’s no wonder that gold bulls have been pushing at an open door. Gold is a gigantic bet against paper currencies, especially the dollar and the euro. Yes, gold is an absolutely ridiculous investment — apart from all the others.
Meanwhile, it still confronts a giant wall of skepticism. I hadn’t realized just how much skepticism was out there until I went on leave. During the summer’s financial crisis, pretty much every mainstream personal finance expert I saw on TV parroted the same line: “Gold is over,” “It’s too late to get into gold,” “Don’t buy gold at these levels,” and so on.
Source: marketwatch.com
