Gold by the way has probably been one of the best investments over the last couple of years, ie the trend is up and the going looks good. Dangerous to try and pick a top unles you're a short term trader.
Well, that's the thing... I know where I'm going to buy... I have levels below and above the market... Too many peeps think we are going to 1200-1500 by years end...people who have zero market knowledge... But that's the least of my worries... My main concern is the chart.. and though gold has made new highs in almost every other currency except USD, I still feel that a correction will come...
Gold will go to $1,500 to $2,000 an ounce with the talking heads of CNBC mussing about the return to the Gold Standard. The United States has lost all respect internationally due to the Credit Default Swap implosion. Here comes inflation...:eek: www.bellevuebanker.com
Gold is benefiting from investors' lack of confidence in the leaders of the major world economic powers having a solid grip on how to end the economic malaise we now face. This flight into Gold became more apparent after U.S. Treasury Secretary Timothy Geithner failed to provide specific details on the U.S. Government's plan to deal with the economic crisis. In addition to being a store of safety during turbulent economic times, Gold is also used as an inflation hedge. Though it may seem strange for traders to buy Gold in a deflationary environment, we must think of what may happen once all this liquidity being pumped in from major world central banks finally works its way through the world economy. In addition to the psychological reasons for owning gold, there are actually some bullish fundamentals as well. Gold supplies out of South Africa fell once again, with output down by almost 18% in December. Also supportive was the growing interest in Gold ETF's, with the largest of these funds, the SPDR Gold Trust (GLD), increasing their holdings to a record 935.09 metric tons. So until traders and investors start to feel confident that the worst of the economic turmoil is behind us, the lure of Gold will continue to be a beacon for those looking for a safe haven in this stormy investment climate.
You need to look deeper. The spot market is just paper. The physical market is where you see the REAL pricing. It's not like every dealer is out there peddling oversupply. Quite the opposite. Just about any jeweler will ask you if you have any gold to sell because he/she is buying. Coin dealers have limited stocks to deal with even small orders. What do you think happens when a sports celebrity comes in and wants 300k worth of gold coins? What I foresee happening is a stage where the spot price falls on decreasing volume, while real bullion goes through the roof. Because slowly and slowly, it is becoming relevant that paper gold is still...just.. paper. There is hoarding going on, but it is not because people all of the sudden think Gold is the hot thing to have. It's because fiat currencies are going down the toilet. And there are few real assets available to invest in.
I love gold and silver, but you are just wrong about few real assets available ... Look around ... tons of them. Rhodium will soon be cheaper than gold. Looking good.
I still don't get why gold has any substantial value. Other than trinket jewelry, what good is it? So what if its rare.