Oil vs. Metals - Gold (Part 3)

Gold



During the period, gold rose at a 1.3% annual rate (not adjusted for inflation). I have included the price of oil and gold as of September 3, 2007 in the following chart. It stands alone in the upper right hand corner of the chart.

Gold Statistics and Information
Although gold is important to industry and the arts, it also retains a unique status among all commodities as a long-term store of value.



Gold appears to somewhat move with the price of oil. If history is any indicator, one might expect the price of gold to rise about $6 for each dollar oil rises.

I owned gold from 2004 to 2006 based on the insanely low interest rates being paid on short-term treasuries (not keeping up with inflation). I chose Krugerrands for what it is worth. Gold treated me well (up 50%).

Conclusion: I have no opinion on the price of gold. Perhaps it is fairly valued right now, all things being equal. I do not own gold now and this is most certainly not investment advice.