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<p>[QUOTE="medoraman, post: 1224155, member: 26302"]Lucy, just my opinion as well but I think absent any other forces, gold will continue to go up as well. Remember always that inflation is almost always built into our economy, so slow, steady increase should always be seen as the "normal" state. I say that if a market is flat for a period it is in reality slowly declining.</p><p><br /></p><p>I know I have said it but it bears repeating. Gold price in 1933 adjusted for inflation is about where it is today. Today's price is not a shock to me. Going to $2000 an ounce in the next couple years would be a shock, but $2000 in 5 years would not be, since that is only assuming less than 5% inflation.</p><p><br /></p><p>Humans tend to think of prices as static and not factor in inflation into returns. I am no different even though I have training in this area. I remember full well buying silver for $4 in 1991. I look back and think how "smart" I was. Even that, factoring in 5% inflation, gives me a cost of over $10 today. $4 back then is not $4 today, it simply is not but humans cannot wrap their minds around that very well. I fall victim every day to this as well.</p><p><br /></p><p>Fatima is completely right that gold will probably continue to rise, but it should. Oil should as well, and sugar, and silver, and pork bellies, (man those have really gone up, buy bacon if you can because its going through the roof). I think silver is a little too high relatively right now, but that is just my opinion. Its not high enough for me to dump most of my silver holdings though.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1224155, member: 26302"]Lucy, just my opinion as well but I think absent any other forces, gold will continue to go up as well. Remember always that inflation is almost always built into our economy, so slow, steady increase should always be seen as the "normal" state. I say that if a market is flat for a period it is in reality slowly declining. I know I have said it but it bears repeating. Gold price in 1933 adjusted for inflation is about where it is today. Today's price is not a shock to me. Going to $2000 an ounce in the next couple years would be a shock, but $2000 in 5 years would not be, since that is only assuming less than 5% inflation. Humans tend to think of prices as static and not factor in inflation into returns. I am no different even though I have training in this area. I remember full well buying silver for $4 in 1991. I look back and think how "smart" I was. Even that, factoring in 5% inflation, gives me a cost of over $10 today. $4 back then is not $4 today, it simply is not but humans cannot wrap their minds around that very well. I fall victim every day to this as well. Fatima is completely right that gold will probably continue to rise, but it should. Oil should as well, and sugar, and silver, and pork bellies, (man those have really gone up, buy bacon if you can because its going through the roof). I think silver is a little too high relatively right now, but that is just my opinion. Its not high enough for me to dump most of my silver holdings though.[/QUOTE]
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