Summary: gold is currently expensive relative to many other commodities But: "Gold isn't cheap right now, but in a world that is rife with bad monetary and fiscal policies it is destined to become a lot more expensive." WARNING: The short article below also completely demolishes the long-term price manipulation conspiracy.
Price manipulation of gold? Why would they leave that out of Libor etc, Goldman Sachs and their metals manipulations etc. Thanks for the article SillverPete but......... That I can agree with.
Look at it like this ......... say, 18 trillion $ debt, divide all the gold above ground, 75,000 tons , and you get around seven and a half grand per ounce. still think it's undervalued ?
Gold's price has been going up in almost any currency except USD and Thai baht. Check for yourself at www.goldprice.org I think it's just a matter of time until it starts climbing in USD too!
You're pulling my leg right? That was so poorly written that only a high school drop out would give that any consideration. I had to look at who this guy is and his background... I mean seriously?! I am actually laughing whilst I am typing this. And your "WARNING"? Your taking the **** yeah?
"As I've explained in the past, gold is not now and has never been a play on "CPI inflation". Of course, on a very long-term (multi-generational) basis the gold price will tend to rise by enough to offset the decline in the purchasing power of money, but so will the prices of many other assets. What makes gold special is that it is the premier, long-term hedge against bad monetary and fiscal policies." Well said. That is a good article Pete in a sector filled with a lot of very poor scribbling.
Gold is expensive because central banks moved from net selling to net buying, such a transformation has a double price effect. And not exactly peanuts, Central bank & other institutions - positive figure means total net = selling - negative figure means total net = buying year / tonnes / average gold price that year 1997 326 $330.98 1998 363 $294.24 1999 477 $278.88 2000 479 $279.11 2001 520 $271.04 2002 547 $309.73 2003 620 $363.38 2004 479 $409.72 2005 663 $444.74 2006 365 $603.46 2007 484 $695.39 2008 235 $871.96 2009 34 $972.35 >>> 5592 tonnes gold sold over the period 1997-2009 2010 -77 $1224.53 2011 -455 $1571.52 2012 -544.1 $1668.98 2013 -386.6(2014Q1) > -409.3(2014Q2) > -625.5 (2015Q1) $1411.23 2014 -477.2(2014Q4) > -588.0(2015Q1) $1211.71 >>> 2290 tonnes gold bought over the period 2010-2014
Current demand seems to be slowing. Seems like it's mostly used as jewelry/investment/misc? I'm on board for some platinum as they are having mining issues in south africa where the majority of it comes from. PLUS - it's more rare than gold & harder to mine. However, I guess I'm holding out waiting for it to drop some more since the overall demand just hasn't been there. If it had greater demand - the inability to mine would have sent prices up....instead they have fallen. One of my big questions is - will there be more demand for platinum in the future outside of investment & jewelry? If so, then I can justify holding some platinum at the right price...
Are we talking paper gold or physical gold? If as is said that the paper is traded 100 times to the physical, then the whole market is distorted. Not saying that physical is worth 100 times if the paper market collapses as those trades only need a medium, but saying when physical needs to be divided up amongst all the players there won't be enough to go around. Price, or value will go up. Similarly, fiat can be considered both digital and paper. Collapses, bail-ins, etc will leave paper fiat more valuable than digital. If you don't hold it, you don't own it. Cash will be king. The same can be said of petrol, food, medicine, etc. I'm not a doomsayer, but I'm starting to live more and more by the adage of what you hold may one day be the only thing you own.
I agree Sammy that cash will be king, And that there is more digital then currency. A question .The Canadian mint puts out a 20 for 20 or 25 for 25 free shipping and no taxes among other denominations, I tried using them at a store and people were very reluctant to accept them...Each coin in the smaller denomination is pure silver but well under an ounce to me this is a win win situation its silver and cash.....am I missing something? http://www.mint.ca/store/coins/200-...oastal_Waters_2015|Shop-Silver_&#.VXnnJG_bL3g http://www.mint.ca/store/coins/25-f..._the_Canadian_Flag|Shop-Silver_&#.VXnnc2_bL3g
I have most of the first years of $20 for $20. I really like the idea and I bought the 20 for 20 UK coins as well. Stackers don't like them because you are paying $20 but only getting about $7 worth of silver. (From memory, not done the maths on that for a while) Shops don't like them because they are unfamiliar with them. Coin collectors seem to really like them but they are used to paying lots of money for coins. I stopped buying them when the novelty wore off and they really started churning them out. If Australia released some I would be all over them. Plus why would you use them in a store, Gresham's Law indicates that you should keep the silver coins and give away the plastic notes
Well I don't get why anybody would buy these $200 for 2 oz of silver - face value of $200 but only $40 worth of silver It will always be worth $200 so you can't lose But if silver goes up 500% ($20 to $100) your coin will still be worth ... $200 if you think silver will go up, buy the real thing Otherwise put your $200 in the bank where it might at least earn some interest
Gold is rare and is difficult to mine/refine. Gold mining stocks are very low at the moment which would imply that gold is relatively "cheap"
