How high will gold price go?

[Resurrection]

Predictions of $5,000 per ounce are not uncommon. How soon before we see these prices?

[flappist]

Just an up front warning.

If this thread goes the way of the last two it will suffer the same fate and take its antagonists with it.

[Resurrection]

I am asking a honest opinion of the AFF members. Where this discussion goes is beyond my control.

[Franco Cozzo]

Originally Posted by Resurrection

How soon before we see these prices?

Feburary 29th, 2137.

[Scott]

Who knows, for every optimist there seems to be a pessimist. One thing is certain and that is that with the frenzy to get into gold, its retrace will be spectacular.

Silver seems a surer bet in my opinion.

[Geez Louise]

Originally Posted by Big Damo

Feburary 29th, 2137.

Is it a leap year in 2137?

I would say it will take at least another 5-10yrs before we see those prices...if at all.

[ebxr8240]

I wouldn't invest in it... People are like sheep...
It could fall just as quick as it went up..
Plus I'd like to have the REAL gold...
In time I can see people losing big time ...

[Auslandau]

Originally Posted by Resurrection

Predictions of $5,000 per ounce are not uncommon. How soon before we see these prices?

As Manuel would state .... "Eventually ...... "

..... as no one knows what it will be next week .... do you want someone to just guess or you going to tell us when? If you can pick it you will be a wonderfully rich man. BUT ..... will it be before or after the world implodes?

[charles_wif_xf]

With the US dollar continuing its downward slide to oblivion, its only a matter of time Resurrection.

[dave289]

How high will gold price go ? you may as well ask .....

How long is a piece of string ?

The answer is , I dont know and either does anybody else .

Will gold reach $5,000 , Well as some would say , it will one day .

Will it reach it in the near future ? the way things are looking right now the answer is more than likely , yes .

Gold was around $800 an ounce back in april 09 . so in 2 and half years it has risen to over $1800 an ounce and will be closer to the $2,000 mark by the end of the year ,that would make a 150% increase in just over two and a half years . from there another 150% increase would take it to $5,000 an ounce .

I dont see any reason why it wont continue to go north at the same rate it has been doing for a while now . There may be a very temperary stall around the $2,000 mark , which will be nothing more than people getting their head around paying $2,000 for an ounce , because it has never been done before .

Once they get over this , it will continue on its way. Where it ends or goes , is anybodies guess .

I guess the best way to answer your question in the post reguarding the 5k and how soon we will see these prices . If somebody was to give me a million dollars and said I had to use it all on a bet as to which year we crack the 5k mark . I would place it 2014. The reason is, being nothing more than a continuation of how is has been going for some time now .No rocket science involved , nothing more than a guesstimation based on how things are going and have been going.

In saying all that , I still find it amusing , that this is nothing more than a peice of metal we dig out of the ground . It really is used for not a lot more than making decorations , now while some may be used for conductors or simlair ,other metals can be used for this.

So to think about it a bit more , I am not into jewelery , I dont even own any , so to me gold is nothing more than a rock dug out of the ground , and worthless to me really if I was to hold it for example as I have no actaull use for it.

So we flock to this rock in the ground ,is the bottom line and I would not even like to think what is the point of all this or what benefit it really is to have some rock from the ground cost so much , does it really make much sense when you have a real good think about.

I mean something that we never really think about is that it was actually used for currency in the old days , actual gold coins or silver coins or bronze coins , hence where we get our deserving medals for our olympians and the like. Then we replaced actual worth with a piece of paper with some words written on it , from there we are now where we are now , but now we have a lot of paper but not a lot of worth .

now while I dont think our interest rates will have any direct effect on the price of gold as we would be small on gold purchases on the world scale I just wanted to say something briefly reguarding the direction of interest rates .

I did not want to start a new thread but I could say that gold and interest rates are dictated by the economy. which brings me to my point of interest rates dictated by the economy rather than the reserve bank .

I think all banks will start to lower interest rates further shortly. The reserve bank may as well be put out of action , even if they do raise rates the banks will not follow ,they will be forced to drop them just to try and get things moving . So while its good for some ,it wont be good for term deposits and the like . The fixed rate term deposits you are now looking at, may be the highest you will see for some time ,so just something to think about for some out there . The rest should be seeing a gradual decline in interst rates .

So for anybody out there about to fix their rate becuase of all this talk about the reserve bank lifting interest rates , you need not panick. Even if the reserve does lift them and I think they might , the banks will not follow , they cannot afford to ,plain and simple . You may get offers from your lender or bank to encourage you to fix rates , as it might be the highest they see for a while , and only a benefit to them ,not you , but I did'nt need to tell you that. So you should avoid such offers.

So for those with loans you may wish to hold off on locking in any interest rates , I would advise all mortgage holders to stay on a variable rate ,there will be no rush to lock in a low rate . and those looking for some return on their bank deposits may look at doing the opposite , maybe think about locking part in as to not leave yourself short anywhere and look at it as a sort of insurance on the great possibility of dimishing returns.

Sorry to hijack your thread resuurection , I knew you of all, would not mind ,the gold thread was not on fire so I jumped on board. All the best dave.

[Pis-ton broke]

i don,t know. i did hear last year that gold was extremely undervalued. to help put it in to context, in usa many many years ago(don,t know about Australia) it was understood that a note ,say $100 legal tender could be exchanged for it equivilent in gold. that can,t happen today as you need lots and lots of notes. I,m trying to say that the governent has printed so much money, it tends to devalue the dollar, and gold was tried in with paper notes value at one time. Maybe gold is the true currenty value. it is usual for people to by gold in times of hardship, and the world isn,t going to well at the moment is it.
I hear that silver will run out and its a good thing, it will exceed gold prices.
and woolworths are at a 3,5 year low. people have got to eat.

[Gobes32]

What cracks me up is that gold is actually pretty useless. Can't really do much with it, and yet we are all preaching how it must go higher, and yet, housing, which you can actually live in, must crash, I don't get it...........

[FGII-XR6]

Originally Posted by Gobes32

What cracks me up is that gold is actually pretty useless. Can't really do much with it, and yet we are all preaching how it must go higher, and yet, housing, which you can actually live in, must crash, I don't get it...........

Gold is an excelent electrical conductor and is used for switch contacts , high end audio plugs are gold plated for better conduction not for looks, the microscopic wires inside an integrated circuit ( computer chip etc) are gold this is for 2 reasons 1 is better conductivity the other is better thermal properties allowing thiner wires for the connections. so gold is far from a useless metal

[Pis-ton broke]

and gone are the days of gold fillings in your teeth

[Pedro]

I had lunch today with a mate of mine who is a very wealthy and knowledgeable investor (e.g. he bought a tonne of silver just before the global meltdown for $8 per ounce ... it's currently running at $30 per ounce).
I asked him about gold as an investment and he says it's too volatile to interest him. But there's no doubt gold will keep going up in value, especially if there's a political change in Germany towards the end of the year, because that country's opposition doesn't support the idea of propping up the delinquent economies of countries like Greece, Portugal, Spain, Italy etc.. If they are elected … all hell will break loose.

[GT0132]

Originally Posted by Resurrection

Predictions of $5,000 per ounce are not uncommon. How soon before we see these prices?

When I saw the title of this thread I knew the author had to be either you, Dave289 or Trippytaka

[flappist]

Originally Posted by Pedro

I had lunch today with a mate of mine who is a very wealthy and knowledgeable investor (e.g. he bought a tonne of silver just before the global meltdown for $8 per ounce ... it's currently running at $30 per ounce).
I asked him about gold as an investment and he says it's too volatile to interest him. But there's no doubt gold will keep going up in value, especially if there's a political change in Germany towards the end of the year, because that country's opposition doesn't support the idea of propping up the delinquent economies of countries like Greece, Portugal, Spain, Italy etc.. If they are elected … all hell will break loose.

Oh goody, I have a lump of silver I won years ago and last time I looked it was worth about $100, now if your rate is right it is worth at least a carton of rum...

[dave351cid]

i dont follow the gold prices much but there is a guy at work who is a keen gold prospector and he was saying the other day that in comparision to the 1980s gold prices should be $2500 oz at the moment so it still has a fair way to go just to get back up to the equilivent value it had 30 years ago.

[dave351cid]

Originally Posted by Pedro

(e.g. he bought a tonne of silver just before the global meltdown for $8 per ounce ... it's currently running at $30 per ounce).
.

hmmmm..... any body smarter then me know how many ounces in a tonne.??

[flappist]

Originally Posted by dave351cid

hmmmm..... any body smarter then me know how many ounces in a tonne.??

A troy ounce of silver is about 31.1 grams and one tonne is 1,000,000 grams

So about 32,155 ounces or $965k +/-

[Keepleft]

August 18, Bloomberg:-

Venezuelan President Hugo Chavez ordered his government to repatriate $11 billion in gold held in banks abroad to safeguard the country from the economic crisis and said he’ll nationalize the local gold industry.

Venezuela has about 211 tons of its 365 tons of gold reserves held abroad at institutions including the Bank of England, JPMorgan Chase & Co. (JPM), Barclays Plc (BARC), Standard Chartered Plc (STAN) and the Bank of Nova Scotia (BNS), according to a government document.

“We’ve held 99 tons of gold at the Bank of England since 1980. I agree with bringing that home,” Chavez said today on state television. “It’s a healthy decision.”

Chavez, who has said he wants to eliminate the “dictatorship” of the U.S. dollar, has called on Venezuela’s central bank to diversify its $28.7 billion in reserves away from U.S. institutions. Some cash reserves, which total $6.3 billion, will be shifted into currencies from emerging markets including China, Russia, Brazil and India, central bank President Nelson Merentes said today at a news conference

More on this story on the Bloomberg link below.

Bilions in USD terms, but should be a negligeble effect on the US economy, and world economy for that matter, even given the dire US situation.

I guess things change as other places begin to do the same. Interesting though is his new effort at nationalising gold production; I guess to protect Venezuela - if the world faces a fiat currency crises.

http://www.bloomberg.com/news/2011-0...-industry.html

I bought a kilo silver bullion bar from PM the other week, look pretty and makes a great paper weight, I recommend them. Silver is used industrially, and its mining lifespan is not that long, apparently. (Some say 15-15 years).

Originally Posted by Pedro

But there's no doubt gold will keep going up in value, especially if there's a political change in Germany towards the end of the year, because that country's opposition doesn't support the idea of propping up the delinquent economies of countries like Greece, Portugal, Spain, Italy etc.. If they are elected … all hell will break loose.

Actually if you mean the socialists/bolshies/greens - they are full on Europhiles and the EU parliament is a sister hotbed of Bolshie agenda (ask Nigel Farange), so - they'll try harder to save the EU 'dream', and probably ruin the German economy whilst their at it.

[spebgtsprint]

I actually work in a small gold mine - (e.g. stand alone, no other mines operated by the owner). The M.D. who has invested $19 million of his own personal monies, has confidently predicted $2500 by March next year and to watch out after that. "The only way is up".

I'm glad - my company share options are almost set to break even, then I will exercise these and hopefully be in the money very soon, as the companies value is very undervalued at the present time.....watch this space!

Then again it could all go pear shaped and I'll be on the bread line next week?

[dave289]

Question is , what would actually slow or stop the gold rush ?

or what if china decided that wealth is gold and plan on buying up whatever reserves from around the world they can get their hands on. Their economy may now be at or near its peak as far as their manufatcuring is concerned , because of the world economy slowing it will slow their economy, so china have been thrown a bit of a dud in the sense that they are thriving but now nobody has much left to buy their stuff.

Interesting times ahead folks.

[dave289]

This should see many more flock to the gold rock.

http://www.news.com.au/business/euro...ews-newsfeed-9

[Gobes32]

Originally Posted by au3xr6

Gold is an excelent electrical conductor and is used for switch contacts , high end audio plugs are gold plated for better conduction not for looks, the microscopic wires inside an integrated circuit ( computer chip etc) are gold this is for 2 reasons 1 is better conductivity the other is better thermal properties allowing thiner wires for the connections. so gold is far from a useless metal

I am aware of it's usefulness, and know it is not worthless. I am guilty of exageration in my original post.

I just query the fact that gold is seriously undervalued, when, in uncertain economic times like these, surely your own home should be your greatest asset, not a lump of metal.

All I am saying is that, for someone like me with limited knowledge on the subject, our fascination with gold all of a sudden is laughable.

[dave289]

Originally Posted by dave289

This should see many more flock to the gold rock.

http://www.news.com.au/business/euro...ews-newsfeed-9

the live link below ,for anybody that wants to follow it

http://www.news.com.au/business/live...ews-newsfeed-1

And an update on gold below.


http://www.news.com.au/business/gold...-1226130210912

[ebxr8240]

There isn't much in U.S to invest in that won't go bad so people are putting it into gold..
So all the money is rapt up in gold when it could be used keeping people working etc..
Big signs of no confidence.. We felt it bad the last few depressions while these countries just borrowed more.. Now they are paying for it big time!!!
No point in investing money in banks there..
Interest rates are well under 1% so I doubt you'd get a good return on
term deposit...

[cupic]

Originally Posted by Resurrection

Predictions of $5,000 per ounce are not uncommon. How soon before we see these prices?

Inflated by fear!
Would love to see in back to $20/oz where it should always should have been.
@$5000/oz the US might even pays for its interest only on their loans

cheers

[dave289]

Originally Posted by ebxr8240

There isn't much in U.S to invest in that won't go bad so people are putting it into gold..
So all the money is rapt up in gold when it could be used keeping people working etc..
Big signs of no confidence.. We felt it bad the last few depressions while these countries just borrowed more.. Now they are paying for it big time!!!
No point in investing money in banks there..
Interest rates are well under 1% so I doubt you'd get a good return on
term deposit...

As far as interest rates go in the states , they are not good to say the least . For those out there that dont know I will tell you what rate of return you get on your bank deposits over there , and you might then understand why gold is where it is . YOU GET -.005% on your bank deposits .

Meaning if I put $1,000,000 in the bank tommorrow ,in one years time it will be worth $995,000. And the reason for this is nobody is borrowing any money or buying realestate ,so if they dont get on the gold rush they put it in the bank ,so the bank becomes a place to holds ones money but is not lending any , so they need to charge an amount just to hold your money as they now have so much and nobody wanting to borrow..So as you can see not much good having your money in the bank over there ,so they are flocking to the gold.

You can all look forward to a simliar situation here in a couple of years .

[ebxr8240]

Originally Posted by dave289

You can all look forward to a similar situation here in a couple of years .

True BUT I don't totally agree with this sentence..
We have had our hard times here over the years where businesses have closed down . Especially out in the country..In around 88 we had a big correction and some latter.. Japan, U.S and some European countries just borrowed more.. Seems Mr Keating was right back then ???
I can't see U.S getting out of trouble without raising tax's...
I have a brother who owns 5 rentals in Chicago / Naperville.. The value
on them has gone down BUT the rent has increased as more people are moving out of there own homes...

Maybe they'll bring in a C tax ???