Jim Yih is a Fee Only Advisor, Best Selling Author, and Financial Speaker on wealth, retirement and personal finance. Currently, Jim specializes in putting Financial Education programs into the workplace.
I don’t have any hard and fast predictions for gold, but do believe that there will have to be a crazy parabolic top before any type of bubble bursts. We saw something similar in silver this year, but I don’t think it was the top.
“Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything.”
I agree that the gold price can be volatile, and we may see the price drop rapidly by $200/oz, but the trend is most definitely still up. Many in the press think that gold is in a bubble, but I don’t think so. The Fed policy of trying to inflate away the nation’s enormous debt is underpinning the gold price, and I don’t see this changing. All economies seem to be on a race to the bottom with their currencies with gold the only survivor.
On an inflation-adjusted basis, gold still hasn’t reached its 1980 peak. I can see it going to $4,000 to $5,000 and the final blow off to that peak may happen very quickly. When – I don’t know, but probably in the next 2 to 3 years.
Comments
LNG is “liquefied natural gas”, not nitrogen gas.
I don’t have any hard and fast predictions for gold, but do believe that there will have to be a crazy parabolic top before any type of bubble bursts. We saw something similar in silver this year, but I don’t think it was the top.
“Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything.”
(Warren Buffet)
I agree that the gold price can be volatile, and we may see the price drop rapidly by $200/oz, but the trend is most definitely still up. Many in the press think that gold is in a bubble, but I don’t think so. The Fed policy of trying to inflate away the nation’s enormous debt is underpinning the gold price, and I don’t see this changing. All economies seem to be on a race to the bottom with their currencies with gold the only survivor.
On an inflation-adjusted basis, gold still hasn’t reached its 1980 peak. I can see it going to $4,000 to $5,000 and the final blow off to that peak may happen very quickly. When – I don’t know, but probably in the next 2 to 3 years.