Gold prices

Cryogenic

Cryogenic

Cryogenic

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Joined
10 Jul 2007
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I was looking to scrap some gold and the prices being offered by some online retailers runs into many thousands for a respectable 300g :)

In times of recession, I know people buy gold pushing up the price, is it best to hang fire for prices to go up, or sell now. Opinions?
 
It seems to be going in the opposite direction to the dollar, so if the dollar continues to gain strength, then chances are the gold price will drop.

You'd think in these times of uncertainty that people would be ploughing money into gold but it doesn't seem to be the case! It's been quite volatile of late. I suppose the value of Gold is a strange and psychological thing. I can't see there being any gold shortage any time in the near future so not sure if it will shoot up to previous levels.

Saying that, a citi internal memo suggested it could hit $2000 next year... I'm wondering if it's worth buying some in US$ so at least if the pound tanks, a pretty static price will not be too bad :)
 
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[TW]Fox;12983600 said:
Was this about the same time Goldman Sachs called oil at $200 by the year end?

Gold has dropped nearly $200 from its peaks earlier this year.
Click to expand...

in dollars.
in pounds its making record highs.

i would hold onto it - the pound is trashed with these idiots in charge and will only lose value further against gold.
 
Now that most gold is traded in paper form, using highly liquid ETFs, the same deleveraging which has decimated share prices has affected gold as well. So whereas it used to act as a safe haven in traumatic financial times, it's now been distorted.

Some people think the underlying financial chaos -- which hasn't gone away, it's just been temporarily glossed over with a coat of taxpayer's money -- will still result in gold breaking out as a store of wealth. And as this is probably the worst financial mess in human history, gold ought to respond very well. It can't be printed, and the energy required to dig it out of the ground ensures it always has value even if its shiny yellow immutability doesn't.

But while all that may be true, all the rules have been torn up recently and it's a brave person who bets on anything other than the value of their own labour (the only genuinely reliable source of personal wealth). I'm not selling the small amount of precious metals I own because it's insurance against the financial sky falling... and it still might. But if you like a bit of a gamble, selling half now and keeping half back might not be a bad idea.

Andrew McP

PS Oil supplies are depleting at about 9% a year. The current financial mess is hiding a rapidly approaching a supply/demand energy crunch. Goldman Sachs won't be far wrong by the end of next year (which I think was their original projection) IMO. If you do sell the gold, buy oil shares/ETFs.
 
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