Link: New York Times
It has been awhile since I have written a post. But I am back now.
For those who follow the financial market through the Greek turmoil, it is hard to escape the fact that the gold price has plunged to a five year low. It is now trading at USD 1100 an ounce, a 42% drop since the 2011 high of USD 1900.30 an ounce.
I am not going to join the goldbug bashing train on this post, but I want to address some thoughts gold as an investment option. It is a normal occurrence during a drinking session at a local pub that someone would mention gold as a good investment. Here is what I am currently thinking of it. I hope that people would correct me if I am wrong.
You may have noticed that the prices at the pump have plummeted over the last six months. A short answer is that the price of crude oil has dropped from USD$107 in June 2104 to around USD$53 by the end of the year. Here is a pretty picture explaining key economic information on its consumption and production by countries.