Why Gold Could Drop $200

http://www.fool.com/investing/general/2009/09/08/why-gold-could-drop-200.aspx O NO!

 

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maybe I should sell...

 

Thats what I was thinking

 

no no no. Hold until the holidays (mid-late Feb) are over.

 

I ........dont know...... let me think about it and get back to you I guess we can sell all our stuff to crusty for below melt. LOL

 

I beleive there will be a correction but going by the dates on the chart that correction could be after gold hits a much higher number like $1100 or $1200. 20% of that is not too bad.

 

Could gold drop $200? Sure. So everyone agrees that gold has $200 of downside built into it. What's the potential upside? Is it more than $200? Is it more than $500? More than $1000. Everyone has to decide for themselves -- nobody can tell you what to do. Investing is all about probabilities, and about putting money into things where the probability of gain is greater than the probability of loss. But also keep in mind that most people are incapable of impassionately judging probabilities, and fear loss more than they desire gain.

 

How come? Demand will fall for gold I'm assuming

 

It looks like Barrick Gold is betting $8.5 Billion you're wrong!

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=MW&date=20090908&id=10372575

 

Fool.com....I hardly ever listen to them "fools'......

 

You can tear that article apart in a heartbeat. Now I'm not that smart of a guy. I failed math miserably all through high school and college. But quickly crunching the numbers, on average gold has seen nearly a 13.5% growth every year. How many stocks can you say have had a steady 10% or more growth over the past 10 years, let alone 5 or 3 years. Gold has had nearly a 15% growth from last year to this year.....and thats just the low numbers. At this point gold has nearly a 30% return on investment from the low of last year. That is fantastic. There is definitely a right time to buy and a right time to sell. Obviously, this is not the time to buy....or maybe it is.....it just depends on how much risk you are willing to take.

 

Many husbands buy gold for x-mas and V day for one. Add speculators and previous trends and I come up with this. I'll reevaluate in begining of Feb.
Keep in mind I don't buy much but do roll search alot and have to sell at some point. Never lose $$ that way and I always try to maximize profits.

 

Don't forget the 20+ years it would seem it was between $300 and $400, that's not much growth at all. It would seem that most of the growth has been in the last 5 years or so and that seems like a bubble to me.

 

It depends on how you define "bubble." A bubble isn't rising prices. A bubble is usually marked by massive public participation, buying on margin, and parabolic price increases. Gold doesn't have any of that yet.

 

Bubble? ...or falling dollar?

 

i don't think so. gold will end this year $1,350.00 and next year $1,650.00.

 

you don't think alot of people are buying up gold cause of all those stupid sell your gold to us for cash ads?

I would think anything that triples in price in less then 10 years is from alot of public demand unless it's a business expense associated with the cost of business like jets engines need platinium to make them


what is Gold actually used for? not just what it "could" be used for
cause I think if it's not "actually" being used for anything other then bullion or art or anything non manufacturing it's just a bubble that will pop when alot of hoarders sell off to make a boat load of money

 

No ,they are selling their gold because of those ads.

GOld teeth (shine em up goood), circuit boards, wire connectors, Particles of a radioactive gold isotope are implanted in tissues to serve as a radiation source in the treatment of certain cancers, Small amounts of gold are used to remedy a condition known as Lagophthalmos, gold leaf, space applications.

 

No, I don't. I don't know a single person who is buying gold. Back in the late 1970s people were lined up around the block trying to get into coin stores to buy or sell gold and silver. There were stories about gold and silver almost every night on TV. The price changes for the leading gold mining stocks were headline news. People I worked with were cashing in bank CDs to buy gold. THAT was a bubble, and there is a significant probability that we will see those conditions again in the not too distant future. Then it will be time to sell.

 

the way I see it is from what I actually have seen here in the past 6+ months is talk about why all these "we will buy your gold for cash ads" most of the people I hear talking about gold say buy! buy!! buy!!! cause those people on tv know what they are talking about! Why would they want to buy your gold if it's NOT! going up? The few exceptions are of people saying I really should sell my wife's jewelery she doesn't need it, 2. I always need money for the stuff I need...like KFC or beer money so it's actually a smart idea to sell gold or other savings now cause if you don't you won't be very happy" or 3. "that I inheritance I got to make more money to go out and party more often" the 2 people I heard they this in bold I laughed at and said that's retarded you got a PM and those last more then paper and a hell of a lot longer then some stupid drink at a bar...they look bewildered to that response...some people just don't learn.

maybe it's just Nebraska...with the exception of the few idiots I'm sure are not just a local problem...most people around here seem to try their hardest to be well informed in anything world related including money