Is it the best time to buy gold as investment now? Before answering the question, perhaps some of you may interested to understand more and get gold investment advice from expert about “Is gold really a good hedge against inflation risk and currency fluctuation?”
Gold is commonly understood as a good inflation hedge investment tool. But, surprisingly, Martin Feldstein, a professor of economics from Harvard University and president of the National Bureau of Economic Research has shared very good points of view in his own ways on gold investment as below:
- Gold is a Poor Inflation Hedge!
- Gold is a Poor Currency Hedge!
- Gold is a High Risk and Highly Volatile Investment!
- Gold is a Purely Speculative Investment!
- 1980: An ounce of gold was US$400
- 1990: An ounce of gold was still US$400. But, the US Consumer Price Index (CPI) was increased more than 60% from 1980 to 1990
- 2000: The US CPI was more than twice its level in 1980. But, the price of gold had fallen to about US$300 an ounce.
- 1980: A dollar was worth 200 yen
- 2005: A dollar was worth 110 yen. But, the gold price was US$400 an ounce in both years.
For gold investors who want to learn more about gold investments, please read the full article from Martin Feldstein published in The Star newspaper. Happy Investing! Happy New Year 2010!
