Gold and other precious metals are considered as safe bet and therefore many investors and hedge fund put their money in gold. Regarding the price- who said that the current price is too high? no one knows what are the gold’s inventories so it is impossible to calculate a decent price. However, what we do know is that emerging
countries increase their demands for gold dramatically, as well as the semi-conductor industries that use
precious metals, so you can expect the gold’s price to continue rising.
Guys, I hear with increasing frequency calls for buying [B]physical[/B] gold, such as ingots, jewelry etc. since only this kind of gold can protect you against future volatility. Do you think it’s worhy idea?
Nonsense!
Buy gold bullion and store it safely.
The price of gold hit an all-time high in early August, eclipsing $2,075 per troy ounce. Uncertainty surrounding the Covid-19 pandemic and the possibility of new government lockdowns is the driving force behind the high gold price.
For centuries, investors have turned to gold as a safe haven store of value during times of downturn, volatility or crisis. The situation today is no different. However, some analysts predict that gold’s rally is far from over.
Of course there is a truth in your words. I guess that another factor which somehow influence the gold price is an extremely high demans no long after the covid pandemic beginning. Actually, during pandemic crisis olygarchs, billionaires started to sell their stocks and invest all their money in gold mainly because its stability is worth to be envious. Hence gold prices sharply increased and that’s why nowadays they still at this level (maybe with small drawdowns). However, it’s still stable lol, but at much more higher price than it was couple of years ago.
I think it has some downside potential as economic expansion continues so I keep holding short position with 1500 per troy ounce target
There are always multiple contributing factors involved in such a widely traded market. You might find the following article interesting:
@ontario Not sure why you are short here - it’s amazing how two people can look at the chart in different ways.
We ARE coming into a seasonally bullish time for Gold now - I think for this year the bottom is in.
And I think fundamentally a negative real rate environment is going to keep a floor below the gold price.
Plus we have the Basel 3 net funding ratio rule changes which are going to have some impact on the market.
I am not hyper bullish on gold but I see more reasons to be long right now that short.
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You know that several factors affect the gold price every day. The first two reasons are inflation and supply which are tied. So, the gold has an inherently limited supply, which rarely undergoes significant changes from one year to the next. Gold prices are also influenced by fear and uncertainty on the market. Also, in the very beginning of a pandemic, investors have flocked to gold and silver bullion, gold stocks and exchange-traded funds to protect their wealth as trillions of dollars have flooded in the US economy in the form of quantitative easing. I guess these are the main reasona why gold nowadays is at a high price.