Steve Forbes is known throughout out the world for his financial advice and his publications. The analysts and writers who write for Forbes are very well educated in the financial system and the comings and goings of its current status. One of those writers is the Intrepid Investor, better known as Josh Lipton. Lipton has been following the steady rise of gold and in a recent blog posting on Forbes.com, Lipton asks the question as to whether gold will keep on its upward swing or if its headed down in the long term.
Lipton says that gold has certainly been an investment that has been performing well over the past decade. He made note that gold has risen nearly 500 percent over the last decade when in 2001, the price of gold was at $255 an ounce compared to the latest closing price of $1,508, he says that gold exchange traded funds have allowed anybody and everybody to invest in gold and that is one reason that it has become so popular. He though also made some interesting points as to why gold could suffer in the long term.
Eventually gold exchange traded funds will lose their popularity and investors will turn away from them, especially when a time comes that the global economy gets back on its feet. He made note that gold ETF's have slipped since their hey day of 2009.
He also made note of politics having an adverse effect on the price of gold. He fears that the government could eventually have too much control over gold and the gold standard would be useless because the federal government would still have some kind of control over the public handling of gold. He also said that the gold mining companies would have a major impact as to what the price of gold will do in the future.