Gold

T

thomsk

Registered User
Messages
187
Anyone got a view as to investing in gold now, as it's broken the $800 an ounce mark - highest since 1980. Some reckon its just the start of a bull run, and may reach $1000 within couple of years?
 
Who exactly reckons this and on what basis are they predicting the future?
 
I've read different reports here and there, in money magazines. Some of the comments can be found at thebulliondesk.com. At that site there is talk of prices reaching more than $5000 - but this, of course is pure speculation!
 
What would it take for Gold to reach the $5000 per ounce level that thomsk has suggested? Would it take a complete colapse of the U.S. Dollar? And would this also lead to rise in the value of other metals and commodities?
 
thomsk said:
Some of the comments can be found at thebulliondesk.com.
Click to expand...

Maybe not the best place for objective analysis of gold.......



Gold doesnt pay dividends or interest so its hardly an asset.Its barely a commodity as the proportion taken up by industrial use is small.
Therefore the main driver of the price is supply vs demand, so really you are relying on some bigger fool than yourself to pay more than you paid.
 
dunkamania said:
Gold doesnt pay dividends or interest so its hardly an asset.Its barely a commodity as the proportion taken up by industrial use is small.
Therefore the main driver of the price is supply vs demand, so really you are relying on some bigger fool than yourself to pay more than you paid.
Click to expand...

Supply and demand characteristics are totally misleading on gold. Pretty much all the gold ever mined is still in existence and could technically flood the market at any time.

Gold should primarily be viewed as insurance against a banking industry collapse. It is a currency, and although no government or bank will pay you interest to hold that currency, it is also free from the liabilities of those same governments. Most importantly of all, no central bank can debase gold to bail out irresponsible lending and borrowing from banks and governments.
 
Dunkamania seems to have a narrow view about gold. To suggest that it is a fools market seems strange. Historically, it has been used as a safe haven by countries worlwide ( a defense mechanism ). Nuclear weapons are also forms of defense. One persons view is that it is foolyhardy to have nuclear weapons....then again, others would say that they are fools not to have them. In times of financial unease, people governments/businesses/individuals buy gold. Fact. And there's enough financial unease worlwide at the moment - who knows for how long. I wont even mention China/ India interest in gold....another story.
 
You must log in or register to reply here.
Back
Top