Gold at $1,000 an ounce

The gold hawkers are right, at
least for now
. Gold has been a better investment than stocks, bonds and other conventional places to park moneyâ??hitting
$1,000 an ounce today.

That signals investors are nervous about prospects for the economy and mainstream investments, says Courtenay Stone, a Ball
State University economist and former official at the Federal Reserve Bank of St. Louis.

Investors are worried about the sliding economy and paying off the $1 trillion-plus stimulus, Stone says: â??Itâ??s kind of an
investment of desperation.â??

In a few years, inflation will roughly double from the 2.5 percent typical of recent years, Stone believes, but wonâ??t approach
the 10 percent or more experienced in the â??80s.

How do you feel about the economy, and about gold as an investment?

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