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<p>[QUOTE="Dazman, post: 74204, member: 2668"]The key idea in most of these posts is relative value be it aesthetic or real. Asthetic value is a tough call. Some people think a Van Gough is the most beautiful thing on earth and would pay millions. Others think it's crap and wouldn't pay a penny. The poster says he doesn't hold them with any real aesthetic pleasure so we must discount that for these purposes.</p><p><br /></p><p>Real value is more easily determined. In this case gold has a real value as set by market demand. The most immediate and reliable valuation type available. In all demand curves there is a resistance point or a price-point over which the price will not easily go higher. The current high end resistance point is at or around $500 based on demand curve analysis. So the current price is close to the resitance point. One point to consider when approaching a resistance point is that the price of the commodity (yes gold is a commodity even though it does not get consumed in the food sense but does in the market sense) can fall drastically if it fails to "puncture" the resitance point.</p><p><br /></p><p>All that said to get to this point in the decsion making process; Is the profit made high enough to satisfy the desired profit motive or does the seller think that he should get more? This determination should be non emotional. Say as in I can make a 30% profit by selling this car or keep from losing alot of money by not selling it and the motor blowing up rendering it virtually useless.</p><p><br /></p><p>The decision made could be any of the three:</p><p><br /></p><p>1. Hold - Not enough profit to be made and I think it will go higher (short term or long term)</p><p>2. Sell - Profit is good enough or better than good enough and there are better investments to be made. Or I think the price is going to go down and will not have a chance to realise this particular profit factor in the short term.</p><p>3. Hedge - Partial sell to realise some of the profit to be had and hold the remainder and decide what to do based on future market conditions.</p><p><br /></p><p>Only the seller can make this value based judgement based on his market expectations, level of risk he would like to assume and current liquidity requirements.</p><p><br /></p><p>Whew, didn't think this lesson in Market Based Economics 101 would go on this long lol.</p><p><br /></p><p>Daz[/QUOTE]</p><p><br /></p>
[QUOTE="Dazman, post: 74204, member: 2668"]The key idea in most of these posts is relative value be it aesthetic or real. Asthetic value is a tough call. Some people think a Van Gough is the most beautiful thing on earth and would pay millions. Others think it's crap and wouldn't pay a penny. The poster says he doesn't hold them with any real aesthetic pleasure so we must discount that for these purposes. Real value is more easily determined. In this case gold has a real value as set by market demand. The most immediate and reliable valuation type available. In all demand curves there is a resistance point or a price-point over which the price will not easily go higher. The current high end resistance point is at or around $500 based on demand curve analysis. So the current price is close to the resitance point. One point to consider when approaching a resistance point is that the price of the commodity (yes gold is a commodity even though it does not get consumed in the food sense but does in the market sense) can fall drastically if it fails to "puncture" the resitance point. All that said to get to this point in the decsion making process; Is the profit made high enough to satisfy the desired profit motive or does the seller think that he should get more? This determination should be non emotional. Say as in I can make a 30% profit by selling this car or keep from losing alot of money by not selling it and the motor blowing up rendering it virtually useless. The decision made could be any of the three: 1. Hold - Not enough profit to be made and I think it will go higher (short term or long term) 2. Sell - Profit is good enough or better than good enough and there are better investments to be made. Or I think the price is going to go down and will not have a chance to realise this particular profit factor in the short term. 3. Hedge - Partial sell to realise some of the profit to be had and hold the remainder and decide what to do based on future market conditions. Only the seller can make this value based judgement based on his market expectations, level of risk he would like to assume and current liquidity requirements. Whew, didn't think this lesson in Market Based Economics 101 would go on this long lol. Daz[/QUOTE]
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