Tuesday, August 23, 2011

Gold

'Analysts' are predicting prices for Gold. I find it ridiculous. There is possibly no way of 'predicting' gold prices. Supply and Demand mechanisms will determine price movement higher or lower. One of the earliest times I wrote about Gold, which was in December 2009, it was at ~$1150 per ounce. It is now at $1850.
My point is simple. Fools who say that Gold is headed for $2000 and $5000 and the likes, are stupid. There is no way of ascertaining a price target. I am waiting for the next trigger in the markets which will make people panic.
Gold, largely, is not an investment unless you act like an Indian and buy it every year during Diwali (October-ish) and never have an inclination of selling it. Gold is a speculative commodity for most and the sooner we realise that we are banking on a behavioral play, we will be better off. Gold could head south for a while, but I firmly believe that the next trigger will make Gold go berserk. Only about $9.5 Tn worth of Gold available - much of which is hoarded.

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