People shouldnt get too excited about gold going to 10,000. It has little meaning other than the fact that what you can buy today for $1200 will cost $10,000 then.
So following that logic, gold has increased 20% a year since 2004, our prices should have increased by the same amount in that period. Did I miss all those price increases?
What I don't understand about gold is: If, according to the gold bugs, we should all buy tons of gold to protect ourselves from failing paper currency - why do they accept this same paper currency to sell us their gold? Shouldn't they be keeping it all themselves? Oh, it must be because they want to help us and not themselves. Silly me.
lol ...This point is so funny...Beats me! I ditto everything slapshot said. Let me think.......> *< ||
Currencies come and go, gold is stable. People in Europe find stashes of old national currencies and coins all the time. Too late to exchange them for Euros now. They're worthless. But if they find a pre Euro gold coin from any country - Italian gold lira, french gold franc, etc - guess what? It still has value - more so. The reason we hold onto some gold is we never know when the paper becomes worthless. It's called insurance.
You completely missed the joke and the point of my post. I was not wondering why people want gold. Please re-read what you replied to.
Terrible advice. $1200 to $10,000 in gold is a lot better than $1200 to $1300-2000 or so kept in paper dollars.
Gold closed Friday basically $1227, the first time Gold hit that level was 12/3/09, at that time the Euro traded against the Dollar @ 1.5150...... Today 1.2122. Friday's Gold close based in Euro's 1012. December 3rd 2009, 810 about 20% Like everything traded, Gold prices do not follow a straight line, you sell when it's high and buy when it's low. Question to ask, if you had to hold your money long term, would you want it in the form of paper, or something tangible. Gold is looked upon worldwide as something valuable. Governments, Central Banks all hold it. Paper money and more easily moving zero's via bank wire is preferred over hauling a few thousand kilos of metal, but the paper/fiat paperless notation has no value other than the value we give it, in reality it doesn't exist. When you write a check, your bank doesn't haul that paper money over to the bank of the check holder???? It's just moved with key strokes. Now go back one more year, late October 2008, 10/24/08. Gold was $680, EUR/USD @ 1.2500 Gold in Euros $545.. you do the math and figure out where the value of paper is going. Gold.......... it's pretty!
Actually, that's all the meaning you need. That's precisely the point of gold. To preserve purchasing power during times of severe currency debasement, not necessarily to profit from holding it. So you can choose to hold an ounce of gold, or 1200 pieces of green paper right now. And let's say 5 years from now that same ounce of gold goes for 10,000 pieces of green paper. The gold still buys the same amount of goods and services it does today. Can you say the same about the original 1200 pieces of green paper, if you were still holding those 5 years later? No. And that's the whole point of gold.