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How High Will Gold Go?
How high will the price of gold go?
A decade ago, gold was selling at about $300 per ounce. Now it is selling for about $1,000 per ounce.
A few forecasters think gold could reach $2,000 per ounce while other analysts call that crazy. Adjusted for inflation, the highest price gold has reached was around $1,700.
The reason gold is experiencing a price increase right now is because stocks and currency markets have been doing poorly. This causes many investors to flee into more conservative investments such as gold.
I think the price of gold will not go too much higher. Stocks are recovering as investors head back into the stock market. I think the rush on gold is partly due to the promotion it has received in the media as gold has done well. A few bandwagon jumpers are still buying gold, but I think it is a bad idea to buy gold now at such a high price.
I don't think it was a good idea to buy stocks at their inflated bubble price of the mid 2000's. The time to buy investments are when they are not doing well and not being talked about in the media.
A decade ago, gold was selling at about $300 per ounce. Now it is selling for about $1,000 per ounce.
A few forecasters think gold could reach $2,000 per ounce while other analysts call that crazy. Adjusted for inflation, the highest price gold has reached was around $1,700.
The reason gold is experiencing a price increase right now is because stocks and currency markets have been doing poorly. This causes many investors to flee into more conservative investments such as gold.
I think the price of gold will not go too much higher. Stocks are recovering as investors head back into the stock market. I think the rush on gold is partly due to the promotion it has received in the media as gold has done well. A few bandwagon jumpers are still buying gold, but I think it is a bad idea to buy gold now at such a high price.
I don't think it was a good idea to buy stocks at their inflated bubble price of the mid 2000's. The time to buy investments are when they are not doing well and not being talked about in the media.
Replies to This Discussion
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Permalink Reply by OICUAM2 on -
I agree with the idea that gold is nearing a high point. The recession pushed gold higher and now that the recession is ending, the price of gold won't go much higher. Not exactly sure, but that would be my bet.
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Permalink Reply by paul on
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The only thing I can think of that might make gold a good investment over the next couple of years is if the dollar continues to fall in value. This might keep the price of gold going higher, but I still think it is at the peak in value.
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Permalink Reply by OICUAM2 on
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I just saw an article where a fund manager was saying he thought gold could go higher and that it is a good investment during economic crisis periods. He went on to say though that he though gold might top out at about $1,300.
This small increase in value makes sense for a large fund investor because making a couple hundred dollars per ouce is huge when you have the ability to buy thousands of ounces of gold. However, the average investor is probably taking on too much risk right now by buying gold because gold might have already peaked and they probably are not watching the markets closely enough to sell at the high point.
I also read an article that said that gold investments are more like the spice of your investment portfolio instead of the main dish. The recommendation was that gold shouldn't make up more than 5 - 10 % of your overall investment portfolio.
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Permalink Reply by Nathan Andover on -
I thought this was a good article about gold and right wing political ideology.
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Permalink Reply by Nathan Andover on
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One thing I just thought of is that as an investment, gold doesn't compound, correct?
If you make money on stocks, your earned profits can go to work for you. If you buy gold, you will always have the same amount of gold that will just be higher in value. I guess you could buy more gold with the incrased value, but you would have to sell your gold first to get the money so it would cancel out.
Am I thinking about this correctly?
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Jon Stewart talks about Glenn Beck and the price of gold on The Daily Show:
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Permalink Reply by OICUAM2 on
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That is really funny. Although not for the right wingers who follow their Beck fetish into a bad investment. Gold might have been a good investment a few years ago, but now that it has tripled in value, I don't know how these companies can say it is a good investment.
Would I want to buy real estate after it had tripled in value? No. I would want to buy it when it had lost value and was set to rebound.
Would I want to buy stocks after they had tripled in value? No. The increase in value would have already happened and a correction to lower value would probably come next.
The same with gold.
Not hard to believe that Beck would be willing to profit off leading his followers in the wrong direction. That is what he does for a living.
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Permalink Reply by Nathan Andover on
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Here's an article about the price of gold that shows nobody really knows what is going to happen. At one point the article states that most analysts agree that gold will fall and then later in the article talks about how gold could go to $2,500 if inflation fears are realized.
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