Quote:
Originally Posted by seeandsee
does this chart can really tell the truth? how much $ was at 1970, its not same $ then and now
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The $800 peak of 1980 would be over $2000 today.
Another thing to keep in mind is, much like one sees in stocks, there are psychological price levels (both on the up and down side) that once broken can result in a large trending up (or down) in price over time.
For gold, $1000 was a big barrier ... took a few gos, before the price stayed above it and since then is well on its way towards $2000.
IMHO, $2000 to $2500 is likely where gold will peak for awhile.
Gold is an investment vehicle / hedge, as well being nice to have in an economic downturn, such as right now ... many people will accept gold.
However, in a financial collapse ... gold, while limited in supply, will be of little use compared to actual usable commodities, such as food and energy.
Speaking of investment ... there's very little transparency in the gold market ... how much gold is really out there? How much gold do governments hold? How much gold is leveraged? The gold price is based in large part on leverage on more gold than is physically held...
On an aside, the U.S. Mint and other government mints sell large quantities of gold bullion coins with no hesitation - sure they're making some money do it, but if gold was really in very tight supply, selling gold would be the last thing for a government to do...
Rambling a bit, there's likely far more gold out there than people realize combined with the leveraging could lead to a rapid decline in gold price at any time, as has happened numerous times in the past. Gold is a decent hedge / good to hold as part, as in maybe upto 10%, of a larger investment portfolio.
Ron