Quote:
Originally Posted by FlyingIguana
its a good hedge right now. its also a very easy call as a hedge given the fundamentals of the economy and gold itself. but, at what point does a hedge turn into a value investment?
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You don't buy commodities as value investments.
The demand for gold is going up because of inflation fears, not because people want to buy more gold rings etc in the consumer market, so unless that changes the value will always be tied to the inflation rate\inflationary fears.
That means the gold is still worth more or less the same, but the value of the dollar has changed against it.