1970, Nixon shut down the Bretton Woods System, making gold soar dramically from less than $40 to more than $600 per ounce in less than 1 year. As of now, gold can be purchased from $700-$800 per ounce.
I know things change and prices are always increasing, but never at such an extrememly high rate as what I just stated above. In comparison to silver, it can be purchased at around $13-14 per ounce.
2007-12-16 05:08:53 · 8 answers · asked by Frank 3 in Business & Finance ➔ Investing
There is some optical illusion, as gold rises against
the dollar, but much less against better managed
currencies, such as the euro.
The gold price rises when the US dollar price falls.
If the US dollar fall becomes a stampede, which
is a possibility in the next years, as it is less and
less recognized as a money that can be trusted,
then the gold price can get much higher than now.
But so will be the case for the price of socks or
donuts in US dollars.
.
2007-12-16 09:12:07 · answer #1 · answered by pgreen 6 · 0⤊ 0⤋
The price of gold will go up, the price of gold will go down. How it will relate to other investments is anybody's guess. But I will say this. Something like 98% of the gold ever mined is out there to be used, sold, bought, recycled, whatever. Every year more and more gold is mined. And very little of that will ever be lost (except maybe what is buried with Grandma). So the "supply" is always increasing. If you want to invest in a commodity that we're running out of and that will eventually disappear, think about oil. We will run out of that.
2007-12-16 09:31:40 · answer #2 · answered by David M 7 · 0⤊ 1⤋
No one can offer truly accurate short-term predictions, but over the long-term (a century or more) the price of gold has scarcely kept pace with inflation. The only rational grounds for investment in precious metals is as an inflation hedge, and even for that purpose inflation-linked bonds are almost certain to provide superior yields.
2007-12-16 06:20:12 · answer #3 · answered by Hermoderus 4 · 0⤊ 1⤋
Something that is desired but hard to find will have a high price. As the world's population grows, and as it grows in wealth, and if the supply of gold remains limited, then yes, the price will go up.
2007-12-16 05:13:20 · answer #4 · answered by hottotrot1_usa 7 · 1⤊ 0⤋
The price of gold will increase in the new year, markets are unreliable in december because of the holidays...Analysis I see , is for gold between 800-1,000 next year....I beleive 850-900.
Silver is an industrial metal, not a subtitute for value storing as gold is. Buy silver if you want, but it is different category from gold.
2007-12-16 05:16:42 · answer #5 · answered by bob shark 7 · 0⤊ 2⤋
Yes, the price of gold is going to increase even more. Just wait, its going to blow your mind how high it will get.
2007-12-16 05:16:46 · answer #6 · answered by Anonymous · 1⤊ 1⤋
The U S government is doing all that it can to make the dollar worthless. That is very bullish for gold and for almost all investments not dollar denominated.
2007-12-16 05:26:45 · answer #7 · answered by Anonymous · 0⤊ 2⤋
go to monex.com and look at the charts for the last 4-5 years. also read the post below. no one can answer for certain, but.....
2007-12-16 06:44:43 · answer #8 · answered by trailng 3 · 0⤊ 0⤋