Gold prices have taken a huge hit, and they will probably keep trending down. Predictions (with reasoning) are welcome.
Looks like to me gold has been taking 5 steps forward and 4 steps backward lately. Dollar was a little stronger but think maybe it has dropped a bit lately. Use to be when the US government talked about spending it was millions and billions. Now you hear these bail out costing hundreds of billions and trillions of dollars and this is not enough. Adding to this you hear of meeting these bailout executives are taking. One of their night out on the town will probably cost as much as all the taxes I will pay for the rest of my life. Lot of people, not everyone, is in the survival mode I think. The Joe the plummer type guy may not have the resources to buy gold, silver ect. Everyone I know is afraid of loosing their job or having their hours cut back. If gold has not done anything to this point, then I would have to ask when will it. Saying that , I do have some gold (not a lot) and plan on keeping it for the long run. I would hate to hazard a guess on what metals will do.
This is another lesson in how anything can be proved by using the right starting point. If you measure the one year decline from around 800 to 720 the way most people would look at annual results, that's only about a 10% drop which is nothing to get excited about in something as volitile as gold. The move is meaningless.
For all we know Danr is a closet Canadian, and pretty soon "eh" will come out in every other word. Hoovering is vacuuming in Canada.
Gold dropped about ten percent in one year. I'd settle for that if my IRA only lost that much! Look at it on the up side, maybe we can afford a Saint-Gaudens double eagle soon...
Gold has proved excellent as a long term investment...over the last ten years it has risen over 15% per year on average. When volatile, short term investment is not advisable but in the long term GOLD pays off. Best wishes, Mike.
I agree, I remember it being in the $400 range. But it seems like it is headed back there. I consider metals to be cyclical not long term growers.
My forecast is that gold and silver will be higher in price in five years -- perhaps so much higher that it will astonish everyone. In the meantime it will fluctuate violently in both directions. The primary reason is that governments around the world are printing trillions of dollars, euros, yen, etc... every week. Actions have consequences, something people periodically forget.
I've been saying that for a while now but with silver. Same holds true with gold though. The good news is we are now starting to see more physical gold and silver at the shop. That's only because the boss has been digging real hard for it and the premiums that even a dealer pays are way above normal but they are dropping somewhat. Still it is basically moving about as fast as we can get it. If you can find physical gold at 8-10% over spot right now you'd be doing well. This is for the REAL thing NOT on paper.
It's " Stay the Course" for the long haul I believe. We may need gold as a life saver late next year and 2010. I hope the federal government doesn't make it illegal to own gold. Everybody better find a great hiding place then. Plan for the worse and hope and pray for the best outcomes for the economy.:smile and the world!!
I dont think gold will be a lifesaver of any kind...people are just panicy and making the gold rush thinking gold is somehow the answer. This of course has driven premiums way up for us long term investors...15% or more premiums is not a smart buy IMO. I usual buy around 5% now they expect 10-15% or more... The US mint is having a hard time keeping up but they have only raised their prices to dealers 3%...those middle men are raking in the profits buying gold slightly higher and selling it for HUGE profits for bullion.
