Quote:
Originally Posted by Porsche-O-Phile
I can see $1500 but I doubt much more. The demand right now is (as I see it) driven by speculation and by virtue of the fact that there's a lot of investment money out there sitting on the sidelines right now looking for a home. RE sucks, bonds suck, stocks are volatile, so I figure a lot of people are taking a shot on gold looking to make a few bucks on flipping a few ounces here and there. I considered it, but said "nah" - I have other priorities right now. Probably could've made a few hundred or maybe a few thousand if I timed it right, but that's a dangerous game as so many recently learned in the RE bubble.
This one will pop in a few months and then there will be another bubble somewhere else to take advantage of... and the cycle will repeat somewhere else. And then somewhere else. It's the way of things.
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U don't know which end is up..
QE2 is designed to do what...stop a deflationary spiral by PRINTING MORE USD"s and creating inflation..what does printing more USD's do to the value of the USD? If the USD goes down what happens to the price of everything specifically commodities and hard assets? It takes more USD's to buy them.
Now the question yuou have to ask yourself is there rampant speculation in the Gold market that has driven the value FAR HIGHER than is warranted by the economics of the matter?
Further do you think QE2 will further drive down the value of the USD longer term? If so than the economics will catch up with the speculative price for the Gold that you have just bought. U might just be buying it too soon at a higher than fair value.
My answer to the purchase of Gold is to wait till the election. You may see a decline in the price if the Republicans take office. or should I say you will see a correction in the price of Gold. However that correction will be a buying opportunity as the REALITY of QE2 is that the USD will continue to decline in value.