Why is gold so high?

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?

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?

Umm… :slight_smile:

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?

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.

It’s the value of the money used to buy it that is deteriorating. :wink:

Aaaaaand now it just pooped all over itself against USD.

Ron Paul will not be pleased.

And it begins…welcome 2012

The US dollar surprised everyone!

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.


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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.

Gold only use is for corrotion prevention, it has no industrial use. Silver by the other hand has a lot of usage, includin gun powder manufacturing. If aluminum and iron where securities i would make money of it. Iron is almost low cost, when it rallies it stays there for a while and then it plummets. Aluminum is the most common metal on earth but ironicaly is the most expensive to produce, it is cheaper to recycle it but the already produced aluminium is very expensive. Copper, i think is the true security as long electricity is still in fashion, because is the best electricity conductor and is not an easy element to harvest. Titanium i think it has a potencial because it is cheapper than aluminium and more resistant. Finally magnesium, it can be used for fireworks, cars and now laptops, why? because it dispates heat better than steel and aluminium. So if you are going to trade with metals this is the information you need to handle.


Gold is not high, nor is it low. 1 ounce is exactly one ounce since a couple of million years ago, when such ponzi tricks like the buck was not even thought of in the mind of non existing human beings.

I messure the value of money in what i can get for it. So if gold ounce costs x amount of money and with that money i can get a lot of stuff, then i can say gold is expensive.


You can do what you like, but that doesn’t change the facts. If you look at a broader collection of real assets it’s not only gold is noted higher in terms of debt value. In fact inflation devalues your debt paper, which is not really money anyways. That gives most the illusion things get more expensive, but the things are the same as before. If you have an ounce of gold, a barrel of wti or a ton of copper. If all the sheeples around would think through all of it they would get aware that the governements were in their pockets long before they spend what’s left.

I think I invest in gold because of something my wife noticed a long time ago. I am simply attracted to shiny objects. So therefore I cant help myself.

That is a good way of lookimg at it.

By the way you are wrong here. Gold is a better conductor of electricity and less corrosive than copper. But copper is less expensive. It also has great sealing capabilities due to it point of melting temp is so low and is used to make gaskets on jet engines. Just thought I would throw that out there not that it makes a difference.

Hmm, maybe time to buy again, reading all of this?

The “best” argument is always this: “You can’t eat gold and it has no use.” Lol! Nobody asks if you can eat stocks or paper with funny printed numbers on it, but if it comes to pm’s people suddenly become hungry. :smiley:

Sure you can eat paper with funny numbers on it. Just ask my 3 yr old he eats paper all the time. Sometimes I wander about the long term affects. But he seems content with it sooooo.

Lol. So you give him all your bucks for lunch? But then you can even eat gold. Sometimes it’s the color on top of a cake or you can also drink it. :wink:

Goldwasser - Wikipedia, the free encyclopedia