Quote:
Originally Posted by jc3900
Well, I guess we could be in for a bubble but do you guys really think we are going to see anything close like the bust in the 80's. I can't imagine seeing gold take a 50% plunge at these levels?
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Look, gold is up 40% in the past year, and oil is 60% higher. We may even see higher oil prices this summer if we have any weather-based interruptions. Any time you see run ups like that I would expect a correction, regardless of what investment you are talking about. Unless you are playing with fun money, I think allocating more than 5-10% of your portfolio to commodities is a bad idea. Trust me, the minute we get some positive news on the economy you will not want to be heavy into gold (like this morning).