Gold price is coming to 1191.1 per ounce just by the end of today. And I believe it might have chance to broke the lowest price in recent five years of 1185 per ounce recently. And here is this article about warren buffets’ hatred about gold.

So here is my analysis of the declining. Firstly, gold have been overly evaluated as a rare metal. Without the gold standard, it will just be treat as a metal. Based on the high technology of this age, exploiting gold have become much easier. And the amount of global reserve of gold  is massive. So the scarcity of gold will certainly caused the price of gold drop back.

However the old appreciation of gold is still holding gold’s price. Here is a prediction graph for gold during the 20th century

And here is a graph for the truth for gold price in recent years.

We can see clearly how much people used to have their trust in gold. However, until today, people like my grandmother is still saving huge amount of gold in her home and have his old traditional judgement of gold.

I stand firm with Warren Buffett and I’ll not invest on gold not even go short for it. For my simple reason that I don’t invest on others’ judgment.

http://www.nasdaq.com/article/why-warren-buffett-hates-gold-cm267928