July 17,2015-
There were the days that gold seemed to zoom higher and higher.But in late 2013 a free fall began taking the value of gold from over $1800 an ounce to around $1130 today -when it hit a 5-year low.
The reason why – loss of fear in the economy and the future. Visions of hyper inflation and collapsing economies just have not happened despite that famous “wall of worry.”
Gold is sold to some buyers based on fear of world turmoil, government debt or massive deficit spending. Or how about war with Iran.
Consider instead that job creation has been good, inflation low and the Federal Reserve is expected to raise interest rates that will strengthening the dollar. This will continue to reduce gold’s glitter.
As for war with Iran, that too looks less likely
As this chart shows – buying gold at $1800 in 2012 means you lost some 40% of your money today. You were much better off putting that cash under your mattress.
