Please ensure Javascript is enabled for purposes of website accessibility

How Much Should Gold Cost?

By Rich Smith - Apr 25, 2013 at 1:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A paper of record suggests it should cost 15 barrels of oil... always.

The price of gold went haywire last week -- and sent Wall Street into a lather. Around about that time, Goldman Sachs (GS -0.45%) predicted the shiny metal would soon fall below $1,400 (sooner than they thought, as it turned out), though a Wall Street Journal columnist suggested there was method to gold's madness: that an ounce of gold should cost enough to buy 15 barrels of oil -- now, tomorrow, and always.

Problem is, the Journal was wrong about that. Fool contributor Rich Smith explains.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Goldman Sachs Group, Inc. Stock Quote
The Goldman Sachs Group, Inc.
GS
$306.80 (-0.45%) $-1.40

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.