Could you make that comparison to something that is not overvalued like housing? How much gold did you need to buy a car in 1960, and how much gold do you need today?
How had gold fared against other currencies, such as the euro or swiss franc?
Since 75% of gold demand is from jewellers, how can we be sure that a worldwide recession won’t reduce jeweller demand? Would that be offset by increased investor demand? If only 25% of gold is bought by investors, does that tell us that not too many people think of gold as a store of value, and how does that affect its price? Is the recent rise in gold price because commodities is the next hot fad, or because there is really something to it?
As far as the different ways of holding gold, there are varying opinions. I’m just trying to learn more about how much I should even buy in the first place. Have a book – Hot Commodities – that just arrived. Hopefully that will answer these questions that I have.