Quote Originally Posted by Wraith View Post
The gold one I think isn't a great idea. Big reasons for its rise in value is the number of Chinese and Indians that can now afford it, and they're just not going to suddenly get poor again.
The price of gold is a combination of 3 things, or so--
Its use in jewelry and industry -- rising slightly.
The labor and energy cost of extracting it -- rising.
Demand as an investment asset. Rising, a lot.

All bubbles look good until they burst. What will happen when golds starts teetering? People will sell it in a panic. Gold will be less attractive as the US, South American, and European economies recover 2011-2012, even with the real inflation that it brings...

Gold has been increasingly volatile IMO in the past few months, a sign that way more people are buying it for speculation than long-term holding or actual use. Late last year it started going steady in price before crashing and then rising like mad for no reason...