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Originally Posted by bahbahmickey
I am not talking about the current situation we are in. I am talking about next year and I use the word if. Also, forgot to say that nothing else out of the ordinary changes.
My point is to say that what if gold's price was driven up so high that it is guessing we will have an average inflation over the past 5 years and the next 20 years of 40% a year and if we actually only have 4%/yr. Would you still believe it is a good investment?
I can't really see the economy getting that much better any time soon. I think when interest rates rise plenty of people will be in trouble. If interest rates do not rise then this will be bad news for our paper currency and those with savings.
If gold went to the moon then I guess I would sell and invest in something that produces me an income. The timing part of this can be tricky. The government also manipulates the CPI which understates inflation.
Quote:
Originally Posted by boobies4me
Would be interested in hearing your reasons for considering selling. Have the fundamentals worsened for gold since when you originally bought? You feel like we're nearing a top? I personally feel gold is still quite undervalued given what's transpired so far.
I am not selling at the moment but am in a bit of a dilemma as I have made good money already and can use that money for something else. I don't think the fundamentals have changed at all. I find it amusing how gold drops at the very words of Bernanke - even though the guy is completely full of garbage. They are not raising interest rates in a big way anytime soon. There are of course other factors which has an effect on the price of gold, but as long as the dollar remains weak I feel fairly confident in holding gold.