Purchasing Gold - A few Questions

ps
the long term chart above is crucially important as it shows how nominal gold became massively undervalued in the late 1990's and is just becoming fairly valued nominally as we speak (essential to adjust for inflation and inflation has been a lot more than governments have been reporting).
 
When gold likely rises 10 or 25 times from it's 2000 low in the coming years then it will be a bubble and it will be time to go underweight gold and overweight property and equities.
Click to expand...

10-25 times eh?
My god - where do I sign up?
 
Not saying it will go up 10-25 times (but bubbles generally do go up multiple times especially in equity markets - Nasdaq bubble went up 16 times).

No one has a crystall ball just that it might as conditons today are stronger than they were in the 1970's - no possibility of global Depression in the 1970's, US was a large creditor nation in 1980 - today it is the largest debtor nation the world has ever seen and in 1980 US interest rsates went over 15% which rewarded savers who reverted to cash and bonds.

It is the opposite today with today's interest rates are at 0% and the printing presses are printing at rates never seen before - quantitative easing and debasement.

Just might be an idea just to diversify a little cancan . Even if gold does not go up you will have own one asset that is inversely correlated to property , equities and the most importantly the economic cycle.
 
I'm not against diversification.
I just want people to realise that it is possible that gold could be a massively overpriced dull metal at the minute, or a vastly under priced depression buster.

There is no risk free investment. It could be either of the above.
 
absolutely agree and important to have civilised and enlightened debate so that we can ascertain the facts.
agree there is no risk free investment.
there are less risky investments and gold is certainly that as seen in it's rising in all major currencies in 2007 and 2008.
no one is advocating piling in and cornering Fort Knox just having an allocation to gold just in case.
 
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