On Gold

Gold is in a bubble, that I have no doubt about it. The price of gold today is about 4 times its value in 2000 and Hugo Chavez is stockpiling them.

There is a great article called"Gold - a six thousand year-old bubble", which describes all I would have liked to say and more about gold.

In line with the opinion of the author of above article about not to argue with a six thousand year – old bubble: I thought that if IMF sold gold, it might have driven down the price. Nope, India just bought 200 tons of gold from IMF two weeks ago and the price of gold continues to go up.

Should gold be considered as an investment vehicle? Not for me. I would buy stocks such as Coca Cola, McDonald etc. any time before I ever consider buying gold. People eat at McDonald and people drink Coca Cola, therefore, both companies have intrinsic value.

Disclosure: I own stocks of Coca Cola.