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Do you think the 1 Oz Gold price will go up to 2000 euro this year?
- Thread starter clemens
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- 1oz gold gold price
Manipulate downwards, you mean?
Physical is hard to get and those spot price suppressors will get caught pants down, having to scrable for gold they don't have, as more people ask for deliveries.
Spot could stay below, but I think physical will breach your 2K target, especially in USD.
Manipulate downwards, you mean?
Going long or shorting can both be profitable
.Yes the paper gold market is detached from the physical market right now. A spike in gold price above 2,000 is possible. But that is all it will be a spike before crashing back down. Gold does not produce an income and needs to be sold off for fiat for one to live
.Also once a vaccine is found and things return back to some sort of normality in 2021 and beyond, people who are inherently stupid in general, will cash in any gold gains and go back into income producing assets. Gold may fall below 1,100 mark in that scenario.
Going long or shorting can both be profitable
Yes the paper gold market is detached from the physical market right now. A spike in gold price above 2,000 is possible. But that is all it will be a spike before crashing back down. Gold does not produce an income and needs to be sold off for fiat for one to live
Also once a vaccine is found and things return back to some sort of normality in 2021 and beyond, people who are inherently stupid in general, will cash in any gold gains and go back into income producing assets. Gold may fall below 1,100 mark in that scenario.
This time is different. I agree with your analysis on the retail investors' behavior, but central banks just ran out of yield on the last standing "big currency"
Gold at 0 bps APR, free of default risk, can compete well with any "safe bond" in the range of negative 75 bps to positive 100 bps APR.
Given these conditions, I don't see why the average central bank has not already shifted 5-10% more of its reserves to gold. Maybe it will take a little more time... Slow processors and old minds in these institutions
Hmm, this time (I need to point out it is the first timeGold does not produce an income and needs to be sold off for fiat for one to live
) I have to disagree with you Martin! As far as I know, the currency unit in South Africa Krugerrand which is 1 oz pure Gold. You can buy a car, food, house anything you want for your Krugerrand. I'm sure you can do that in many other South American countries too, without knowing it.
And here a snip from the big thread inside the Mentor Group Gold from the Investment Matrix, I just find it interesting:
In my view, it will take at least a year to hit that price. Analysts of Bank of America have published a report titled ‘The Fed Can’t Print Gold’ and set a gold price of US$ 3,000 in 18 months. According to the analysts, interest rates in the United States as well of the rest of the world are expected to stay very low for a long time. Government spending, deficits and central banks’ balance sheets are predicted to increase significantly. While the strong US-dollar and weak jewellery demand from countries like India and China will put pressure on the gold price, the demand from investors is expected to drive the gold price in the end higher.
According to me, it will take more than a year to hit that price
today I agree - it is swapping between 1550 and 1610 for some time.. but rising slowly towards the 2k mark.
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