2010 turned out to be a pretty good year for buying gold, and other precious metals.
The Dow was up just 11% over the year.
Gold was up 29%.
Silver was up 81.6%
Platinum was up 20%.
Palladium was up over 100%.
In other words, all precious metals did significantly better than the Dow.
Of course, those of us who buy gold to own it and keep it, don’t fuss too much about the percentage points. We don’t buy gold in order to beat the Dow. We buy it to protect a part of our wealth from a crash on the Dow.
Nevertheless, it’s nice to see our safe-haven gold purchases actually beating the Dow.
But what about 2011? Well, experts from various banks around the world differ in their predictions. But most suggest the price of gold will swing between about $1,200 and $1,600.
In other words, the price will go lower than where it is now, and higher. And, as always, there are diehard gold bulls who see gold prices going a lot higher than $1,600.
Maybe they are right. Maybe news from Europe, China or the Fed will push the price of gold to dizzy new heights at some point this year.
For you and I, the plan remains the same. Keep buying gold at regular intervals, aiming to make your purchases during price corrections. Don’t get too stressed about periodic ups and downs in prices.
Just know that whatever price you pay for gold now will be turn out to be a great price, if and when things go really wrong with the economy.