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Whats going to happen with gold





TEReview
Can it get any higher or is this it. If it is it what is the alternative hedge?
Possum
Gold has value as it is uses in Many electrical components.

The other value Gold has depends on arbitrary human beliefs. I'd rather invest in computers and applications that way I'm investing in myself..
hunnyhiteshseth
I guess gold will continue to rise because it is the only commodity which can't be arbitrarily devalued. All other forms of money including currencies suffer from risk of devaluation or inflation which can only be hedged by gold. So, in long term gold will continue to rise. however, we may experience fluctuations in short term.
ocalhoun
hunnyhiteshseth wrote:
I guess gold will continue to rise because it is the only commodity which can't be arbitrarily devalued. All other forms of money including currencies suffer from risk of devaluation or inflation which can only be hedged by gold. So, in long term gold will continue to rise. however, we may experience fluctuations in short term.

Well, gold could be devalued... especially in a circumstance kind of like this one, where economic troubles cause many people to want to buy gold, which will of course drive the price up.

When the economic situation settles down though, people will want to convert back to things more liquid, selling their gold. At that point, the value of gold will drop sharply, perhaps catastrophically if it is hyped the wrong way.
hunnyhiteshseth
ocalhoun wrote:
hunnyhiteshseth wrote:
I guess gold will continue to rise because it is the only commodity which can't be arbitrarily devalued. All other forms of money including currencies suffer from risk of devaluation or inflation which can only be hedged by gold. So, in long term gold will continue to rise. however, we may experience fluctuations in short term.

Well, gold could be devalued... especially in a circumstance kind of like this one, where economic troubles cause many people to want to buy gold, which will of course drive the price up.

When the economic situation settles down though, people will want to convert back to things more liquid, selling their gold. At that point, the value of gold will drop sharply, perhaps catastrophically if it is hyped the wrong way.


No, what I meant was that gold cannot be devalued at whimps & fancies of a government but currencies can be. US government may any day decide to print trillions of dollars and consequently, devalue dollar but it can't produce gold out of thin air and devalue it directly. Obviously, I won't go into into whether US government will do it practically or not but theoritically if it wants it can.
ocalhoun
hunnyhiteshseth wrote:
ocalhoun wrote:
hunnyhiteshseth wrote:
I guess gold will continue to rise because it is the only commodity which can't be arbitrarily devalued. All other forms of money including currencies suffer from risk of devaluation or inflation which can only be hedged by gold. So, in long term gold will continue to rise. however, we may experience fluctuations in short term.

Well, gold could be devalued... especially in a circumstance kind of like this one, where economic troubles cause many people to want to buy gold, which will of course drive the price up.

When the economic situation settles down though, people will want to convert back to things more liquid, selling their gold. At that point, the value of gold will drop sharply, perhaps catastrophically if it is hyped the wrong way.


No, what I meant was that gold cannot be devalued at whimps & fancies of a government but currencies can be. US government may any day decide to print trillions of dollars and consequently, devalue dollar but it can't produce gold out of thin air and devalue it directly. Obviously, I won't go into into whether US government will do it practically or not but theoritically if it wants it can.

Well, gold cannot be (easily) devalued by any single government, but its value does fluctuate, no matter if you measure it against a given currency, or against other commodities. The value of everything fluctuates based (mainly) on the good old principles of supply and demand.
hunnyhiteshseth
ocalhoun wrote:
hunnyhiteshseth wrote:
ocalhoun wrote:
hunnyhiteshseth wrote:
I guess gold will continue to rise because it is the only commodity which can't be arbitrarily devalued. All other forms of money including currencies suffer from risk of devaluation or inflation which can only be hedged by gold. So, in long term gold will continue to rise. however, we may experience fluctuations in short term.

Well, gold could be devalued... especially in a circumstance kind of like this one, where economic troubles cause many people to want to buy gold, which will of course drive the price up.

When the economic situation settles down though, people will want to convert back to things more liquid, selling their gold. At that point, the value of gold will drop sharply, perhaps catastrophically if it is hyped the wrong way.


No, what I meant was that gold cannot be devalued at whimps & fancies of a government but currencies can be. US government may any day decide to print trillions of dollars and consequently, devalue dollar but it can't produce gold out of thin air and devalue it directly. Obviously, I won't go into into whether US government will do it practically or not but theoritically if it wants it can.

Well, gold cannot be (easily) devalued by any single government, but its value does fluctuate, no matter if you measure it against a given currency, or against other commodities. The value of everything fluctuates based (mainly) on the good old principles of supply and demand.


Yes it does. But chances of delibrate devaluation are greatly reduced in case of commodities such as gold.
ocalhoun
hunnyhiteshseth wrote:

Yes it does. But chances of delibrate devaluation are greatly reduced in case of commodities such as gold.

As with nearly any non-currency asset.
hunnyhiteshseth
ocalhoun wrote:
hunnyhiteshseth wrote:

Yes it does. But chances of delibrate devaluation are greatly reduced in case of commodities such as gold.

As with nearly any non-currency asset.


Precisely that is my argument, that non-currency assets in long run should appreciate.
menino
Gold is actually linked with the dollar, and I believe that this is because the federal reserve has gold bullion stored in its reserves. This has something to do with when the dollar goes down, the reserves are required, which makes the price of the dollar go up.
Also in countries, people prefer buying gold, because it always has value. As this forum has already mentioned, people will liquidate their gold assets when currencies fall.
Gold can only be devalued, when currencies go up, but not by choice, but by economics.
ocalhoun
hunnyhiteshseth wrote:
ocalhoun wrote:
hunnyhiteshseth wrote:

Yes it does. But chances of delibrate devaluation are greatly reduced in case of commodities such as gold.

As with nearly any non-currency asset.


Precisely that is my argument, that non-currency assets in long run should appreciate.

Appreciate compared to what?
Currency assets?
They will indeed all appreciate compared to currency- when currency is becoming less valuable (inflation).
In a deflation environment, where currency is becoming more valuable, non-currency assets will become less valuable, compared to currency.
deanhills
ocalhoun wrote:
hunnyhiteshseth wrote:
ocalhoun wrote:
hunnyhiteshseth wrote:

Yes it does. But chances of delibrate devaluation are greatly reduced in case of commodities such as gold.

As with nearly any non-currency asset.


Precisely that is my argument, that non-currency assets in long run should appreciate.

Appreciate compared to what?
Currency assets?
They will indeed all appreciate compared to currency- when currency is becoming less valuable (inflation).
In a deflation environment, where currency is becoming more valuable, non-currency assets will become less valuable, compared to currency.
I thought that we were in a deflation environment in that interest rates are almost zero or less than zero. But currencies have become less valuable as Governments are devaluing their currencies deliberately in trying to export their goods cheaply so that they can revive their economies. Non-currency assets such as oil and gold have increased in value.

What you are saying is a correct theory, but Governments are manipulating the values of everything so much so that nothing is following natural laws any longer.
hunnyhiteshseth
ocalhoun wrote:
hunnyhiteshseth wrote:
ocalhoun wrote:
hunnyhiteshseth wrote:

Yes it does. But chances of delibrate devaluation are greatly reduced in case of commodities such as gold.

As with nearly any non-currency asset.


Precisely that is my argument, that non-currency assets in long run should appreciate.

Appreciate compared to what?
Currency assets?
They will indeed all appreciate compared to currency- when currency is becoming less valuable (inflation).
In a deflation environment, where currency is becoming more valuable, non-currency assets will become less valuable, compared to currency.


Appreciate compared to any currency linked assets due to inflation.
Yes, but deflations are rarer than inflation.
TEReview
I use kitco.com to track the price of gold each day I am looking for a site which gives real time qoute for oil. Anyone have one?
Cliffer
gold is very good! i love gold!
the-guide
Although in short period the value of gold will fluctuates based on the principles of supply and demand. However, for long term period I think it will higher than nowadays, I pretty sure!
app893
I think it will be rised in the future.
HoytJolly
I feel like the price of gold is currently artificially inflated. It is true that gold has a real value and that when paper money becomes devalued, gold will still be worth something (which is why you see all of these ‘buy your gold’ places popping up, full of people that are trying to get their hands on cheap gold.) However, lots of people know this, and are buying gold. Currently, this has driven the price of gold up. This trend is also supported by big businesses that see that they can sell some of their gold at a very high price then buy it back later at a lower price. Why else would they be trying to sell gold unless then knew that the price of gold was going to fall? In my opinion, wait for the price of gold to drop, then buy some.
mark1230
for me gold is a good investment commodity though if equities gets settled down a bit then we can see a downside rally but at the end of year of so it will again reach its peak
gandalfthegrey
If we get a serious economic depression, people are going to start realizing that they cannot eat gold.
Possum
there is a good article about gold in the Podcast

Skeptoid #214: Student Questions: Gold as an Investment and FEMA Coffins
hunnyhiteshseth
1.5 years on, looks like this we have seen highest price of gold at least for short term. What are your views on it?
Possum
Just speaking for myself here.

Its not my opinion you should be looking for. As I have no record of having a correct opinion of gold.

Others Do though..

I recommend you follow people like Peter Schiff, Gerald Celente or Mike Maloney

These people have a track record of predicting the rise of gold. And more than that they have an opinion of why this is happening.
mml_
Gold by historical standards is obviously overvalued. But in the short to medium term can go higher (that is up as well as down)
aydinal
I think it is undervalued in the short term but overvalued in the long. Therefore i would by some now and sell at the first sight of a serious decline. But you never know.
365427417
Come with you to learn explore
watchftp
I've been trying to invest in gold for a while but couldn't find good info on how to get start with it. Anyone have any suggestion?
gandalfthegrey
I recently saw the 60 Minutes piece about the value of gold in India. I knew it has religious and cultural significance, but not to the extend presented in the 60 Minutes piece. The value of gold will continue to raise as long as the population and wealth of India increases.
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