Gold Even At 1055 Still A Lousy Investment

The gold bugs are finally enjoying their moment in the sun. After 20 horrible years, in which gold dropped from $800 to $250 an ounce, the sometimes-precious metal is now roaring to all-time highs.Some folks, moreover, think this is only the beginning. Peter Schiff recently told Tech Ticker gold is headed to $5,000 an ounce.But that doesn’t mean it’s a great investment!In fact, says our guest Jon Najarian of OptionMonster, even with the run over the past five years, gold is still trading at about half it’s all-time peak after adjusting for inflation. Given that gold is supposed to protect you from inflation, this performance is abysmal.What’s more, gold has actually performed poorly this year relative to other more-boring metals–like copper and silver.Why?In part because those metals are actually used for something. China’s building houses again, which means they’re scarfing up all the copper in the world. But one thing is for certain: The higher gold prices go, the more people will be convinced it is a great investment. And the more people will fight each other out of the way to put it in their portfolios.

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