Looking for opinions on the direction of gold

[jkrk]

IMO: The gold market is late in this decline but it night spill once more perhaps towards the $1,000 mark but sentiment seems to be negative enough to mark me as a nervous bear.

 

Any other thoughts?

 

 

[asdfgh]

The price of gold is not relevant if you buy it as insurance against a global currency melt down. It is more important to be a steady buyer over the long run. Remember gold is just a different form of currency. It has proven over time to buy to exact same amount of goods. That is, It will buy the same amount of goods that it bought 20 years ago. It is also important to not buy during the periods that everyone wants to get it, like the aftermath of the last great recession. Gold is probably fairly priced right now.

[michael]

 

some say gold will go down to 900 an ounce maybe lower? when interest rates rise

 

others say gold will be above $2500+ an ounce by 2020 and beyond

 

others say when you add up all the treasury bonds and USA treasuries and

derivatives out there in the financial markets AND THEN DIVIDE BY the known ounces of gold above ground ( yes they know the totals or pretty damn close) you get a number of gold at $35,000 an ounce so these pundits think gold in way undervalued

 

and like the old saying YOU CANT HOLD BACK THE SPRING some feel that gold is going to breakout and head mucho higher

 

and all even more have their own ways of convincing their positions 100%

 

as to what will happen I don't know.................................................

 

but see below for my opinion

 

 

when gold was what it was in the 1930's an ounce bought a very good quality mans suit

 

today an ounce of gold buys a very good quality mans suit

 

gold is a good hedge and a small part of ones investment portfolio

 

could be in easily saleable semi-numismatic ngc pcgs slabbed pre 33 federal philly mint gold coins

 

how much of ones portfolio should you have in gold ? 2% 5% 10% 0%

 

and in what form of gold?

 

I dont know

 

 

 

 

[physics-fan3.14]

I guarantee you that gold will either go up or down.

 

And that's the most accurate prediction you'll get in this thread.

[KMAG100]

I guarantee you that gold will either go up or down.

 

And that's the most accurate prediction you'll get in this thread.

 

Absolutely guaranteed it will go up or down, and can't go in both directions at the same time......+1 (thumbs u

 

BUY...BUY...BUY....BUY...........SELL....SELL......SELL.....SELL

[RWB]

If the OP will search past posts, he/she will find 4,167.5 posts on this subject....All with the same conclusion.

[cpm9ball]

I guarantee you that gold will either go up or down.

 

And that's the most accurate prediction you'll get in this thread.

 

Absolutely guaranteed it will go up or down, and can't go in both directions at the same time......+1 (thumbs u

 

BUY...BUY...BUY....BUY...........SELL....SELL......SELL.....SELL

 

Hmm! That sounds like BS BS BS BS to me!

 

Chris

[World Colonial]

others say when you add up all the treasury bonds and USA treasuries and

derivatives out there in the financial markets AND THEN DIVIDE BY the known ounces of gold above ground ( yes they know the totals or pretty damn close) you get a number of gold at $35,000 an ounce so these pundits think gold in way undervalued

 

Funny that everyone who says this has something to sell us, either bullion, "investment" coins or a newsletter subscription. That is one amazing coincidence, isn't it?

 

I have read comments of this sort before. If this actually happened, someone could buy a new car for an ounce or less at today's prices and a typical middle class house in much of the country for three to eight ounces.

 

Compared to other commodities, gold is historically overpriced. An above average relative price might be justified because the financial system is a giant Ponzi scheme but nothing close to these claims.

[cpm9ball]

others say when you add up all the treasury bonds and USA treasuries and

derivatives out there in the financial markets AND THEN DIVIDE BY the known ounces of gold above ground ( yes they know the totals or pretty damn close) you get a number of gold at $35,000 an ounce so these pundits think gold in way undervalued

 

Funny that everyone who says this has something to sell us, either bullion, "investment" coins or a newsletter subscription. That is one amazing coincidence, isn't it?

 

(thumbs u (thumbs u (thumbs u

 

For many, many years, I used to get a quarterly report from a PM investment broker. I was always told that the price of silver would increase. Well, it finally did, but it took ten years for it to come about.

 

Chris

[bstrauss3]

It might go up.

Or it could down.

Or it might stay about the same.

[jom]

It might go up.

Or it could down.

Or it might stay about the same.

 

Well thanks for that well thought out and detailed response!

 

The fact is....you're right.

 

When an "investment" is based solely on what other people are paying and has NO possibility of bringing any kind of return other than the SALE of that investment (gold has no ability to give returns while you own it) I generally pass on it.

 

From what I can tell gold is historically a poor investment and it does exactly what BStrauss says: up, down and all around.

 

jom

[SRQQC-migration]

Near term I'd expect gold and silver to trend lower due to dollar strength as a result of the markets in China and the issues in Greece.

 

I'd expect Gold to trend higher if we saw a decent pullback in our markets purely because of investors parking excess cash in the gold futures market. Silver will suffer due to a softening industrial demand and reduced demand by retail physical investors.

 

If interest rates increase and there is more appetite for the risk in lending, expect gold to trend lower due to sales resulting from investors looking for better yields that out-pace inflation than what gold is providing.

 

The fundamentals that will push both higher are purely based in fear. If there is a confidence crisis with the US dollar gold will trend higher but this would be due to an emotion driven market that was inspired by an event that at this point can not be predicted. Until such a time the dollar loses its current strength there will be no lift in prices due to a falling dollar index.

 

Investing in Gold or Silver is investing in your own piece of mind. You feel good knowing you have it. Making a return on that investment is relevant only to time; when you bought it, how long you owned it, and when you sold it. If you asked the question will gold be worth more in 20 years the answer would be yes, but what you can buy for it then will be equal to what you can buy with it now.

 

Personally I look at gold as being nothing more than a medium that is a preservation of wealth, not a medium that increases it.

[Mr.Mcknowitall]

Near term I'd expect gold and silver to trend lower due to dollar strength as a result of the markets in China and the issues in Greece.

 

I'd expect Gold to trend higher if we saw a decent pullback in our markets purely because of investors parking excess cash in the gold futures market. Silver will suffer due to a softening industrial demand and reduced demand by retail physical investors.

 

If interest rates increase and there is more appetite for the risk in lending, expect gold to trend lower due to sales resulting from investors looking for better yields that out-pace inflation than what gold is providing.

 

The fundamentals that will push both higher are purely based in fear. If there is a confidence crisis with the US dollar gold will trend higher but this would be due to an emotion driven market that was inspired by an event that at this point can not be predicted. Until such a time the dollar loses its current strength there will be no lift in prices due to a falling dollar index.

 

Investing in Gold or Silver is investing in your own piece of mind. You feel good knowing you have it. Making a return on that investment is relevant only to time; when you bought it, how long you owned it, and when you sold it. If you asked the question will gold be worth more in 20 years the answer would be yes, but what you can buy for it then will be equal to what you can buy with it now.

 

Personally I look at gold as being nothing more than a medium that is a preservation of wealth, not a medium that increases it.

 

You may find the Gold price Thread on the WC Forum here of interest.

Of particular note would be the thoughts of Mr. Delekkerste, Mr. Hamlet, and (though it is difficult for me to admit ) Mr. Namisgr. I know nothing of value to anybody on the subject you are asking about and/or investing. The names just mentioned are very informative, at least to me.

[Mr. Smith Guesser]

Most people are unaware of this but the Federal Reserve values its gold stock at only $42.22 per ounce.

 

(One official source: http://www.federalreserve.gov/releases/bulletin/1208assets.htm )