Aristo said:
some are of the opinion that gold is no longer hinged to the other precious metals.
I agree, and the lag in price, including that of silver, is quite supportive of that concept.
PGM etc and silver are industrial metals/commodity. Gold is currency.
Yep, I agree, although there was a time when silver would have also been considered currency. That it no longer is is supported by the lack of equal growth (??) to that of gold.
Consequently, as the economics break down globally, the flight will be to gold and the "commodities" may lag as we see currently.
I agree----which is why I suggested the shine may go off gold in time. Probably should have stated my thoughts differently, though, because that puts the emphasis on gold declining, when what I meant was that the dollar will decline, with the loss of buying power reflected by the higher price of platinum (and all other commodities).
I most certainly agree that there is nothing good about this and what is worse, the long term economic outlook is not promising.
Correct, and the ramifications are frightening. People are losing their houses at an alarming rate, and there appears to be no end in sight. I have commented, tongue in cheek, that many will be living under bridges. Sadly, there's not enough bridges to accommodate them. We're in tough times, yet there are entities that are doing everything in their power to ensure that those that are gainfully employed risk losing their jobs. I listened, today, in disbelief as, on the news, several unions are talking striking-----further weakening the security of jobs. It appears, at least to me, that virtually no one has learned anything from recent events, and expects that we'll return to a "business as usual" environment. I don't think so! Workers that have no job are likely to remain unemployed for the prolonged future.
Added to the above, China has signalled that they are diversifying their holdings and are prepared to match the USA holdings in gold. This is already taking place and such a scenario may be sustainable for the bullish outlook on gold. Over the last 6 months, South Korea and Japan central banks have been adding significant gold to their respective reserves. Taking all that into consideration and the limited production of gold currently, this incline seems sustainable.
Please share your thoughts.
Assuming they are steadfast in their quest, yes, I see the market being sustainable for a long time. Still, when you render it down, it will come at the cost of declining value of our medium of exchange, which is printed money. The world will never again trade with gold at the consumer level. There's simply not enough gold to permit that to happen. I fully expect that if gold sees $2,000/ounce, with no end in sight, you can expect to begin paying more for pretty much everything, a direct reflection on the declining value of the medium of exchange. We're seeing it already in higher prices at the market, as well as at fast food restaurants. We're in for a rough ride. Only those that hold gold are going to escape what awaits us.
Harold
