As gold hovers near 1,200 USD an ounce and pundits speculate about a "gold bubble," it's important for investors to remember that a mere decade ago the picture was very different.
In the year 2000, gold sat at an unimpressive annual average of $279 an ounce - a two-decade low. At that time, most analysts thought gold was finished as a monetary metal. They said its price would never recover and only kooks with tin hats would invest in it. I was one of the very few financial commentators publicly saying that gold was not only viable, but entering a long-term uptrend.
With the benefit of hindsight, we can all see that the consensus was wrong. Gold has performed remarkably against the Dow Jones Industrial Average, the Nasdaq Composite Index and U.S. real estate. The reason I was able to confidently forecast this result is because I ignore the 'certainties' determined by Wall Street consensus, and instead study the fundamental trends.
in www.marketoracle.co.uk
Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
Related ETFs: SPDR Gold Trust (ETF) (NYSE:GLD) and Market Vectors Gold Miners ETF (NYSE:GDX)
