Why is gold so high?

[ysg]

I'm looking at the prices over the last 3 decades and it's astronomic:
Gold Price History
File:Gold price in USD.png - Wikipedia, the free encyclopedia

Is there going to be a massive inflation spike?

[keenuo]

Could it be because people are going back to the basics and stocking up with tangible investments as speculators predict the downfall of Euro and the world as we know today?

[ysg]

Umm...

The world will continue to spin, currencies such as JPY, CAD, USD, DKK and USD will be around (at the very least). Care for a better explanation?

[keenuo]

The euro isn't independent but closely linked with the worlds economies. Certainly the downfall of the euro currency or europe itself will have major repercussions with respect to the world's economies. True other currencies will exist but they are too liked with their respective countries economies, loosely speaking. Besides its not necessarily what the facts are when such an event occurs. It's the fear or speculation has creates greater damage similar to the fear of terrorists that the US came up with, i.e traffic light system reminding the Americans that peoples are still out there to bomb you in case they forget.

[petefader]

I'm looking at the prices over the last 3 decades and it's astronomic:
Gold Price History
File:Gold price in USD.png - Wikipedia, the free encyclopedia

Is there going to be a massive inflation spike?

It's the value of the money used to buy it that is deteriorating.

[ysg]

It's the value of the money used to buy it that is deteriorating.

Aaaaaand now it just pooped all over itself against USD.

Ron Paul will not be pleased.

[keenuo]

And it begins...welcome 2012

[Martin Gochev]

The US dollar surprised everyone!

[Mr Gone]

Gold is not a security, it was before, but now because of panic everyone is buying gold and it made gold to rally. So is expeculative now. If it were a currency just like JPY, CHF or GBP it would have a biased central bank who would try to plumet whe it is to high or try to rally when it is to low. And hence gold is not centralized everyone is buying it with no control. We as traders know that it cannot rally forever, but common people never learn the lesson and everyone who does not trade gold knows that a BIG bubble is to come and the faith in gold will be lost. That is why i hate people who looks safe heaven, there is no safe heaven, the only constant is the constant change. We make money in fx because we know nothing is for sure and we take advantage of that.

I think financial education should be taught in school, because there is a big lack of it.

Regards.

[ysg]

Gold is not a security, it was before, but now because of panic everyone is buying gold and it made gold to rally. So is expeculative now. If it were a currency just like JPY, CHF or GBP it would have a biased central bank who would try to plumet whe it is to high or try to rally when it is to low. And hence gold is not centralized everyone is buying it with no control. We as traders know that it cannot rally forever, but common people never learn the lesson and everyone who does not trade gold knows that a BIG bubble is to come and the faith in gold will be lost. That is why i hate people who looks safe heaven, there is no safe heaven, the only constant is the constant change. We make money in fx because we know nothing is for sure and we take advantage of that.

I think financial education should be taught in school, because there is a big lack of it.

Regards.

Lol, thank you. I love this post. Gets to the meat of the issue.

And no, I find gold to be a pretty metal for a watch or jewelry, it has never been a safe haven.