Buy Gold? Is It The Right Time?

Is it Time to Buy Gold?

By Dr. Thomas Carr | June 4, 2015 |

My Grandfather was a very conservative investor.  His investment capital was tied up in real estate, treasuries, the bluest of blue chip stocks, and gold.  I remember well his argument for buying gold.  “God only put so much of it in the ground,” he would say.  “So it can only get more valuable.”  For him, gold was the perennial answer to every financial problem.  Inflation?  Buy gold.  Recession?  Buy gold.  A volatile stock market?  Buy gold.  A weak dollar?  Buy gold.

Unfortunately, he didn’t live long enough to witness the great gold rally that began shortly after his death.  From the $255/oz. spot price low of 2001, the price of gold (POG) rallied to an alltime high of $1,923 high of 2011.  Over those 10 years gold averaged a whopping 65% ROI per year, far surpassing stocks and bonds combined.  Silver nearly doubled that rate, of course, but it has never had quite the allure of the yellow metal.  See the 10-year monthly chart below:

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Tom
Dr. Thomas K. Carr (aka “Dr Stoxx”) is the Founder and CEO of DrStoxx.com which publishes 4 market letters every week, in addition to offering trader education and coaching services. Dr. Carr holds a D.Phil. degree from the University of Oxford and a Masters from Princeton. For 17 years he was a tenured professor to undergraduate students. He currently is a fulltime trader, market analyst, trading systems developer, and trainer of traders. The management company he founded, Kingdom Capital, trades accounts for private clients.

Dr. Carr is author of three bestselling trading books including, Trend Trading for a Living (McGraw-Hill, 2007), which has sold over 50,000 copies, with translations in Chinese, Japanese and Korean. Dr. Carr’s insights into the markets have been published in The Wall Street Journal, US News and World Report, Investors Business Daily, and Technical Analysis of Stocks and Commodities.

Tom

Dr. Thomas K. Carr (aka “Dr Stoxx”) is the Founder and CEO of DrStoxx.com which publishes 4 market letters every week, in addition to offering trader education and coaching services. Dr. Carr holds a D.Phil. degree from the University of Oxford and a Masters from Princeton. For 17 years he was a tenured professor to undergraduate students. He currently is a fulltime trader, market analyst, trading systems developer, and trainer of traders. The management company he founded, Kingdom Capital, trades accounts for private clients.Dr. Carr is author of three bestselling trading books including, Trend Trading for a Living (McGraw-Hill, 2007), which has sold over 50,000 copies, with translations in Chinese, Japanese and Korean. Dr. Carr’s insights into the markets have been published in The Wall Street Journal, US News and World Report, Investors Business Daily, and Technical Analysis of Stocks and Commodities.

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