Gold

[ChiangMaiFun]

Surely it can't continue... can it...?

[asiawatcher]

I would think it the only commodity that will ensure your future. In 2000 Baht weight was 6,800 and now triple that - so in 10 years that is a better bet than real estate and certainly far more liquid!

[ChiangMaiFun]

I would think it the only commodity that will ensure your future. In 2000 Baht weight was 6,800 and now triple that - so in 10 years that is a better bet than real estate and certainly far more liquid!

there must be a correction at some point? property corrected - shares corrected - surely it can't keep climbing ad infinitum?

[Khun Jean]

Ben Bernanke is replaced by Volcker. Interest rates to 20%. Gold 200US$

If not and The Bernank is announcing QEV gold 5000US$

There is no way to know as it is totally in control by a few people.

[gregb]

I would think it the only commodity that will ensure your future. In 2000 Baht weight was 6,800 and now triple that - so in 10 years that is a better bet than real estate and certainly far more liquid!

there must be a correction at some point? property corrected - shares corrected - surely it can't keep climbing ad infinitum?

Gold doesn't have to climb. Fiat currencies simply need to fall. And yes, all fiat currencies can fall to their intrinsic value of zero. In fact, I *GUARANTEE* it will happen. It has happened to every single fiat currency throughout history, and nothing has changed recently that gives me any confidence this period of world history is any different. Economists always try and claim that "it's different this time," whenever they want to ignore reality. It is never true.

Can't tell you when the final collapse in value of any specific currency will occur (and thus, an infinite price of gold in that currency), only that it will happen. Not at all inconceivable that it could happen for some major currencies (such as USD and EUR) sometime in this decade. After all, we are entering a phase of global decline after more than 2 centuries of expansion. The decline will likely last a couple of centuries as well. Fiat currencies work great on the way up. They all collapse on the way down. Every single one of them.

There will be many small corrections in gold, but they will all be transient. In the end, gold is rising because people understand that the rules of the economy are changing. There will be no more economic growth in our lifetimes, or that of our children or grandchildren. Certain geographical regions might expand, but only at the expense of other localities that decline by even more.

So, to answer your question, it can continue to climb ad infinitum, but only because you are viewing it from the wrong perspective.

[thrilled]

whenever there starts to become A shortage of something the price will go up.The gold mines are getting less and less gold all the time.You might see small declines

of gold in the world market,but I believe short time only.I believe everyone should have 5-10% of there investments in gold.But then again thats only my opinion.

[Renbe]

Yes it can, and yes it will. Supply is decreasing and demand is increasing. People in China and India (2500 million of them) are getting richer and are crazy about gold. They buy gold to keep and will absorb more and more of it. Central banks who have been selling of their gold are now buying again. I bought a lot before the euro was introduced in 2001 and continued to do so in the years after that. Stopped buying when the price hit 11000 euro p/kg. It's well over 33000 euro now, and still have no plans any of it, as I expect it will reach 40.000 before the end of next year. and 50.000 not many years after that. In the mean time I have increased my holding in mining stocks and precious metals funds. As a matter of fact, i agree with Jim Rogers, all commodities will become much more expensive in the coming years, not only in US$ who's value will continue to decline, but also in other currencies. So I decreased my holdings in companies that produce stuff, and moved capital to companies that get things out of the ground, whether it be commodities or agricultural produce.

[Microwave]

Very thought provoking 30 minute discussion on just this topic:

http://www.charlierose.com/view/interview/11330

As a few posters have already stated, gold isn't appreciating versus fiat currencies but rather fiat currencies are depreciating versus gold.

[ChiangMaiFun]

I would think it the only commodity that will ensure your future. In 2000 Baht weight was 6,800 and now triple that - so in 10 years that is a better bet than real estate and certainly far more liquid!

there must be a correction at some point? property corrected - shares corrected - surely it can't keep climbing ad infinitum?

Gold doesn't have to climb. Fiat currencies simply need to fall. And yes, all fiat currencies can fall to their intrinsic value of zero. In fact, I *GUARANTEE* it will happen. It has happened to every single fiat currency throughout history, and nothing has changed recently that gives me any confidence this period of world history is any different. Economists always try and claim that "it's different this time," whenever they want to ignore reality. It is never true.

Can't tell you when the final collapse in value of any specific currency will occur (and thus, an infinite price of gold in that currency), only that it will happen. Not at all inconceivable that it could happen for some major currencies (such as USD and EUR) sometime in this decade. After all, we are entering a phase of global decline after more than 2 centuries of expansion. The decline will likely last a couple of centuries as well. Fiat currencies work great on the way up. They all collapse on the way down. Every single one of them.

There will be many small corrections in gold, but they will all be transient. In the end, gold is rising because people understand that the rules of the economy are changing. There will be no more economic growth in our lifetimes, or that of our children or grandchildren. Certain geographical regions might expand, but only at the expense of other localities that decline by even more.

So, to answer your question, it can continue to climb ad infinitum, but only because you are viewing it from the wrong perspective.

excellent post - got it - thanks

[hgma]

commodity values have another value

you cant knibbel of it.....its solid

i do agree 10%

whenever there starts to become A shortage of something the price will go up.The gold mines are getting less and less gold all the time.You might see small declines

of gold in the world market,but I believe short time only.I believe everyone should have 5-10% of there investments in gold.But then again thats only my opinion.

[asiawatcher]

Gold was the underpinning benchmark to paper currencies. and now they all sold off gold, and nothing supports the currencies which at the end of the day are just promissory notes to be exchanged for goods and services, and with the US just printing paper to meet debt, it is only a matter of time before its total demise and the sooner the better.

I think Gold is a great investment and will continue to buy no matter what the cost.

[JimsKnight]

Yep I got my gold, it's not much but some security if it all goes kablooey...