Gold

[Skol]

^GOX vs GLD

http://finance.yahoo.com/q/ta?t=1y&s...&z=l&q=l&c=gld

Convinced?

EZ, it's been a good week for lots of people. A number of sectors have done well this week.

[Skol]

http://finance.yahoo.com/q/ta?t=5y&s...&z=l&q=l&c=uso

Here is the ^XOI and USO before oil crashed in 2008. You can see that before '08 the ^XOI moderated while the sheeple kept buying oil with the usual result in July '08.

[denpal]

Why will it hit $2100? It's a sure thing right, you just can't go wrong. LOL

Here's another one the CBOE Gold Index, GOX, now 30% behind gold, this also tracked gold until May 2011.

Skol, this thread is about GOLD not stocks.

[Skol]

Skol, this thread is about GOLD not stocks.

Gold, gold stocks, same thing isn't it?

[denpal]

Gold, gold stocks, same thing isn't it?

Obviously not, as you yourself have just been pointing out........gold is gold, gold stocks are not gold, they are shares in companies with all the risks that go with that.

[Skol]

If you look back through the last 3000 posts you will find endless references to gold shares, it's one and the same. And if you check the peak oil thread you'll find I pointed out the same anomalies nearly 4 years ago between oil and oil shares.

The thread which I started, says 'gold', it does not say 'physical gold', anyone with an interest in any kind of gold may contribute.

It's absurd to distinguish between the two.

[skid]

I think most would agree that the economy is broken and until it gets fixed gold will be a good investment,[or at least insurance]
At some stage[after all the pain]things will get back on a more stable footing and gold will then swing in the opposite direction.
There are lots of variables to cause fluctuations but IMHO,thats the basic scenario[which I wish was not the case]

[elZorro]

Here's an article I quickly found on the web, seems to cover this argument well. However it classes my main investments as fairly risky (speculation). That's fair enough, I'm looking for a multi-bagger.

http://www.moneyweek.com/investments...esting-in-gold

Investing in gold: conclusion

As we have seen, there are major differences in the various motivations for buying gold and ways to buy gold – from trading and speculating to investing and saving.
Holding precious metals in a portfolio can provide distinct benefits in the form of speculative gains, investment gains, hedging against macroeconomic and geopolitical risk and / or wealth preservation. Traditional asset allocation theory, as represented by the investment pyramid, advocates higher risk speculations at the top, with lower risk assets at the bottom. Commodity futures contracts, options and exploration junior mining companies should be placed at the top of the pyramid, while cash equivalents and fully allocated or taken delivery of physical bullion should form the foundation or base.
Experienced and knowledgeable investors have long known that gold and gold related investments can be solid investment choices. Gold is stable in times of global geopolitical instability and when there is economic uncertainty, recessions and depressions. It is important that investors look at their portfolios holistically. Used correctly, gold and gold related investments can be highly effective components of a properly diversified investment portfolio.
• This article was written by Mark O'Byrne, executive director of international bullion dealer GoldCore. GoldCore has an international media profile (CNBC, Bloomberg, CNN, BBC, FT, Wall Street Journal, Bloomberg, Dow Jones, Associated Press, Reuters etc.) and takes part in the Reuters Precious Metals Poll and the Bloomberg Gold Survey.

[Skol]

You're way out Denpal, the Moneychanger reckons it could get to $2600 this year!

You're expecting gold to increase by 62% this year?

It's only done that once before in recent history and that was 1979, when the herd sniffed instant riches and got subsequently wiped out a few months later.

[elZorro]

You're expecting gold to increase by 62% this year?

It's only done that once before in recent history and that was 1979, when the herd sniffed instant riches and got subsequently wiped out a few months later.

No harm in aiming high is there? Anyway, I'm just a natural-born fool from Waikato, Skol, and certainly buying some gold bars would keep it simple.

The lastest Equedia Weekly included this:

It's not a matter of will gold go up, it's a matter of how high.
GoldmanSachs just released a report calling gold a low-risk, high-return asset and predicts it will rise to $1940 this year. Morgan Stanley predicts a price of $2,175 a year from now. UBS calls for $2050 within 12 months. And Citigroup is calling for $2400. While these numbers don't seem far off, estimates from big banks have proven many times over to be conservative in past years. I see gold going much higher than $2000 within 12 months and stick with my prediction that gold will make its strongest gains this year.

Here's a look at the article by a Citigroup analyst. US$ gold at $1535 or below is the indicator of a correction to this prediction, it didn't happen. They also used the Gold/Dow ratio chart to show that gold is still increasing in value relative to the DOW, has corrected, but is now on form to move solidly upwards. Stocks should move upwards by nearly the same amount though, partly because the US$ will reduce in value. Net result, the Gold/Dow ratio will continue a trend upwards (Dow/Gold will trend down).