1. What do you think, will the price of gold will go down? Argument as much as possible.
2. How could the price of gold could go down? What could happen to do so?
3. Would you buy gold today, now, at current the price?
2. How could the price of gold could go down? What could happen to do so?
3. Would you buy gold today, now, at current the price?
We're certainly having an almost perfect sentiment for a 'bubble state'. Heck, in Dubai they now even placed "Gold ATMs", and i heard there are some that plan to do it on a larger scale.
There are people who said it will first pass 1500, then 2500, then 5000, and even above 10000.
The most loud gold-envangelism seems to be the argument that, in case of a deep-depression everything will go down but gold will go up. I don't disagree with the first, everything will go down, but gold (being a "portable" luxury commodity will collapse too). On the other hand if we're going for a fine W shaped recovery combine with excessive QE (too much inflation) then gold would be a good thing to offset loss on inflation.
In any of those 2 events, gold is just what it is, which leads me to your next question...
4. Not actually a question. I want to learn as much as possible about precious metals and why are they so valued for thousand of years.
Stores a lot of value, takes little space, is quiet portable and independent of authorities. During WW1/WW2 it was perhaps THE most oversold commodity (traded at well below 90% below its real worth), BUT that was in many cases still better than other commodities (except food, but food isn't very portable nor does it store much value).
Its that which makes it so valued throughout our times, it doesn't retain its value at all times but it performs better than most commodities even in the most extreme times.
If we had an extreme event today, similar to WW2, and telecom/internet communication was still intact in some form, and independent cryptocurrencies such as bitcoin were more widely spread than they are now, i think people would more likely purchase them in exchange for food, rather than gold due to its portability advantage AND independence from authorities.
