It is time to expose these morons that are telling everyone that Gold has always been a place to go with their money during a financial crisis. It is one thing to just be ignorant, maybe some of these people are, but I suspect many are just lying to try and make money off of this farse. Above, in a terrible graphic display, I have two charts with the Dow Jones average on top and Gold cash underneath. I just can't get this formatted better so this will have to do.
The periods marked with vertical lines are 1974, 1980, 1982, 1987, 2000, 9/11/2001, and July of 2008 when the current crises became pretty well known. As you can see during the first five periods the price of Gold declined. The 2001 period marked the first rise, and the current one is flat so the jury is still out on that one.
This comes as no surprise to someone who trades with real money and is not a paper champion spouting off all this advice to people with no real idea what they are talking about. I cannot afford to as Roger Clemens would say "misremember" relationships like this.
There is a very close relationship between the price of Gold and inflation, so that is where you need to go to base your investment decisions on gold. We have not always had inflation during prior crisis periods which is why there is no relationship here. I implore you to do your own research before investing money into Gold. One of the strangest things I have ever seen is going on with Gold. When it drops 20% it does not seem to count as a drop whereas a 20% drop in stocks prices does count as a 20% loss. How people use this logic is beyond me, if you buy gold at 1000 and it drops to 900 I hate to tell you but you have lost 10%, it does count.
I am not running for election and could care less who I offend with this. If you are offended, you must be one of these people lying to the public to try and make money, I want to offend you.