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Gold will probably hit its inflation-adjusted 1980/81 highs at some point in the future, but I don't see it going up much beyond that. Relative to equities and bonds, gold has proven to be as bad an asset as real estate over the past 150 years- barely keeping up with inflation while adding a lot of volatility.

It's a good uncorrelated asset for 5-10% of a well-balanced portfolio and might be a good place to stick money in for the short-term right now, but historically, it is not a very good asset and I'd be surprised to see it go above $1800 without significant inflation- if that is the case, the S&P 500- particularly assets like oil, real-estate, ag, and miners,- would also be a perfectly good investment.

 

I've made a helluva run in my 401(k) in SLV.

I hate to chase it on the way up, but in the self-managed portion the rest of my money is sitting in cash right now. I'm thinking about buying some more SLV, not sure if that's just being greedy at this point though.

I'm not real excited about equities right now, so I will probably buy some more SLV soon.

twitter: @CorpFin_Guy
 

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