A very good gold value today are one-half ounce US gold First Spouse coins, because there are relatively few minted, giving it high potential for numismatic value in addition to its half oz gold content. These can be purchased directly from the US Mint, and are a highly superior value.
Even with an economic recovery, India, China and Pacific Rim will lead for the foreseeable future. Even if the rest of the world lags behind. As the economic boom in these countries trickles down, and since gold and PMs are culturally more valued in those countries, higher demand for this status commodity will most likely escalate. I postulate that this may occur with faster acceleration than the economic growth itself would warrant.
I have a Master of Science and Doctorate, and have carefully considered the arguements pro and against continued investment in gold. The arguements against continued gold investments are hollow, whereas, by contrast, the aguements in favor of continued investment in gold are persuasive and compelling. It is noteworthy that the current aricle failes to list an author, and it deceitfully misnames its title.
This article appeared under a different title a few days ago. Now it has been renamed to suggest gold should be over $2,000 (which it should and will be), only to then present a negative article on gold. The site that has posted it, and its promulgators, are actively misleading the public. Their conduct is shameless and offensive.
Gold is still sharply undervalued. It is an element, and cannot be made from anything else except maybe in the center of a supernova. It is in short supply, and very little is being found. No intrinsic value? I guess diamonds and rubies have no value, either. I wonder if this columnist "expert" and Roubini bought Enron, Ford, GM and Global Crossing in the 90s? How about 90% of the stocks that either have decreased since the 1990s or disappeared as the businesses went under? How about the intrinsic value of investing in "green" companies like Carbon Credit stocks (Al Gore will love you)? No, it is stocks that have no intrinsic value. Just pieces of paper you sell to the next fool until they are worth zero!
I think it is time to buy more gold, silver, platinum, palladium and rhodium. These anti-gold sentiments from "experts", closely linked with stock brokers that make their commissions on stocks and bonds, are the negative indicator I have been waiting for to buy more. Shake out the weaker hands. PMs will now climb that "wall of worry" promulgated by those crooks with vested interests in other "worthy" investments. I think it is much more likely that the stock market will crash 30% like 1987. At that point I will possibly buy stocks.
Hmmm. Central banks are net buyers. Gold ores are depleting all over the world. No large new discoveries are made. Gold producers are near the end of their de-hedging efforts and no sign of re-hedging on the horizon. The US has in excess of $12 trillion in debt (more than its last reported (and now discontinued) M3 money supply and no way to pay it back, on top of over $100 trillion in unfunded liabilities, especially with healthcare "reform" just around the corner. Sure, the dollar is "recovering" and gold is a "baaaaad" investment. Stay away - so I can buy more, at lower prices.
Your article is very wisely written and is powerfully persuasive. The wise will buy gold, the fools will not. At this point in time the US currency paper dollars are headed to a disastrous fall, and gold must go very much highr. It is not rocket science to understand when unlimited paper dollars are printed they inevitably become valueless - it is just a matter of time. The US is selling treasury instruments to make payments on its debt, but the US is buying its own treasury instruments because not enough others will buy the paper products; and so we see the charade. The US has the highest percentage of any nation of its wealth in the form of gold. Duh! What can be more obvious than that as to its valueless paper currency?!
Not a very persuasive argument by the author, who cherry-picked high points of gold price to argue against its value as investment. What about someone who bought sometime in 1998 to May 2002 bat $300 and sold in the past few weeks? 161,000 tons mined in human history, not infinite supply
It’s very popular these days to compare gold to a bubble. Instead of following the herd of business journalists, I think its time to stop kidding and compare it with the symbol of its true behavior today – a cork. A cork at any level below the surface will always find its equilibrium if released (from manipulation). With all the US money printing, budget limits increased to the trillions, UST bonds shunned and in danger of default, the Fannie and Freddie capital destruction black holes, I believe that surface equilibrium is above the $2500 range. A lot of money is surely being wasted in trying to keep the cork down. To continue the analogy, surely this cork too (Gold) will find its way up to the surface in the sea of heavily diluted US dollars.