Topic: Will people come back to gold - page 23. (Read 24528 times)

Gold will continue to be relevant in the economy die to it relatively stable price and since it risk involvement is low gold will be the preferred choice of investment for people will low strength for risk. And just like the silver and the real estate investment it have physical value.

   Investment on Gold never disappeared...the 3rd quarter of this year Gold price value drops to lowest point as posted on the Stock Market Exchange.. then after such drops it slowly goes up again..investors are often shift some of their investment into another project with high potential of gain on either short term or long term investment. The significant of Investment on Gold is simple..it is a solid asset compared to crypto as Digital asset. still it is an individual choice where they want to invest.

Maybe yes and maybe not. For those who have been disappointed with the crypto market, it seems that he will leave Crypto and switch to other assets such as gold or possibly real estate. But for those who still have high optimism and enthusiasm in crypto, then surely they will stay and just be patient to look forward to the next increase from the crypto market.

isn't gold a stable investment since time immemorial? and trust in gold is maintained. I think they will return to crypto if their trust returns. especially if the whales buy in large quantities, so that fomo will occur

If BTC price is quoted in Dollars and the QE unravels such that inflation is seen massively in the available supply of currency that will mean BTC price is going up as dollar becomes a far weaker standard.   At least for a year or so, probably more that'll be true.
If the economy is going bearish and not also increasingly buying US debt like somehow happened in 2008 then thats possible
China is the worlds largest producer of gold, exports nothing and reports its purchases and holdings of gold irregularly and many think inaccurately.   Central banks have been net buyers of gold for a decade now, we'd have seen lower prices otherwise but I see no chance of them going below 800 like a proper reversion should be occuring.   Instead we have endless QE, not repayment, no budget surplus or trade growth that would reflect a good outcome to QE.    Nobody will say this as it might provoke the worst but the gold will keep getting bought up  for another decade I've no doubt, the price that results from that I guess is higher but nobody knows how high it'll go as that also depends how badly dollars fall.   

I do not believe it, who likes encryption, blockchain, technology and bitcoin will not change market due to the low season! This is only a matter of time!

I think people use a lot of money to buy gold to preserve their money. It is not a new trend. When the economy stabilizes, they will definitely invest in crypto and the stock market. Do not worry, everything will be fine.

They must be buying OTC gold then, because the market as it is doesn't reflect the huge buyers interest that seems to be suggested here. It's entirely possible like what happens with Bitcoin, but I doubt it at this stage.

Governments are mostly the first to notice that their economies will very likely perform poorly in the coming years, and would start accumulating as much gold as possible to hedge potential risk of devaluation asap.

We haven't yet seen the global economy go full bear to see what its effect is on Bitcoin at current stage. I guess the odds are high that it works against Bitcoin rather than for it, but I will applaud being proven wrong if so.

Yeah, people use gold as a hedge, especially in the extreme fiat volatility. I think the recent political situation with Brexit and the fud of stock market crash lead people to buy more gold. Many "experts" predict that in 2019 stock market will crash because it has been highly overvalued. Perhaps 2019 will be a "hedge year," not an "investment year."

I think it's interesting also for bitcoin, is bitcoin also considered as a means of hedging? We will see in its price movement.

Sell some BTC, buy a little gold which is what I've been doing even at prices below this.   Everyone globally switching out of BTC I believe will still end up 'needing' some kind of alternate to US dollar going forward anyway.    In the west we are kinda blind to why that is, USA is a close cousin to many of the top 10 countries but it probably gets increasingly obvious the further away some countries are especially those without any link to dollar, under sanctions or capital controls.    BTC still has a purpose to play in linking the world better, more efficiently and on a base level compatible to capitalism not elitism

Some percentage will come back to crypto and we'll repeat some accumulation, how or what timescale that occurs on I dont know or pricing till it settles.   I dont think that basic demand and search for something beyond the status quo is over.   I would also doubt gold is going to be popular or as popular because its just not as easily swappable, its really way more boring/long term.  [Gold peaked 2011 and its still finding where its bottom pricing is, balancing supply and demand.    It will also find a new high, eventually.  A rough timescale to 'weigh' gold up would be a decade]  In the 1980's the demand to use pawn shops for gold meant queues a thousand people long some places so I'm told anyway

   tl;dr story isnt over but it might be we approach the end of the start



Its a function of volatility.    We can put a fire out with fuel if enough is swamped on top, it'll blow up later probably but effects can be counter-intuitive.   The reaction to proposed trade tariffs that will hurt USA one of the worlds largest importers, is the market buys US dollar.    Thats nonsensical but its also cause and effect short term at least

gold will always have its place in an investment portfolio of a good investor
sometimes gold loses its value in short term, but in the long run its value always increase
diversification is always recommended in investment practices,
so neglecting gold is like not using an option in diversification, hence reducing hedging power

I think some investors will chosen gold because it a safe haven when market crash. Gold is a good instrument.

Well, as you said, it tends to do the opposite of what the regular markets do, and these regular markets have been an exceptional performer in the last years, and they are still doing well despite the first signs of a wide field correction. I don't really see much reason for Gold to increase much more than it already did.

The volumes the stock market is generating after each dip indicate that there is no real fear of a total market collapse. They definitely know what buy the dip is. Gold is a great indicator of fear, and as long as the price is relatively boring, which it is despite its recent upswing, you know that money isn't looking for a safe haven, yet.

Gold does traditionally run counter-market. It goes up when the other markets are in turmoil. However it has no gone up as much as I would have expected recently. I have no idea why.
 

Not worth to store Gold under the bed, it was maybe good at the time of our grandparents or during wars but in 2018 there are many disadvantages
- higher insurance price for your house
- a robbery, anything can happen but the golden rule is never to tell anyone that you store gold at home.
- you lose value when you resell
- you will get a lower ROI: the fees to buy, delivering, etc are more costs to add.

There are better alternatives and cheaper :p

Well the only reason for that is because its valuable since way back when our ancestors started trading and up until now its value almost hasn't gone down but instead have risen up specially with the current market prices in the market of cryptocurrency which dips dow really hard the last few months of this year.

But the US Dollar isn't backed by Gold since years. And if Central Banks are massively buying gold it can be because they do know the USD will deflate a lot soon (GBP too anyway) (hence also the very bad stock market this autumn?) so they are avoiding the USD deflation or to "save" funds and once again gold is showing its power when it's about "saving" funds.

Gold may have look like it recovered by rising from 1175$ last August to 1238$ today but I don't think it is clear that it is on its way up. Right now we are seeing that Gold is rising up and I doubt it is a good time to ride with it without you starting to pile up when it was on its bottom. Gold is maybe rising up because they are seeing other countries as well as the central banks buying it without even having the idea why it is rising on this bear market overall, this might just be a short term play just like what we are seeing when a coin is pumping up, I just doubt they are preparing to pile up Gold in preparation or this "dark year"

You are completely right in your observation. Many countries do increase gold purchases. First of all, this is due to the growing tension in the world. Economic wars, military tensions between the United States and Russia are forcing many countries to increase their gold reserves. The USA constantly threatens with sanctions to different countries, and in trying to secure their economies, the central banks of different countries are increasing the purchase of gold. But I do not think that countries will move to the gold standard. I am afraid that the gold standard system has already exhausted itself.

There is not enough gold in the world to back up all of the money. People can still value it, but I doubt they can use it like the US did. What could be done instead is using cryptocurrencies after dollar collapses, because they are naturally limited and don't need any kind of backing up. Well, a weird but not impossible thing would be to back up fiat by cryptocurrencies. I guess this would be the situation gold and dollar used to be in. It's not such a bad idea in case people come to value cryptocurrencies themselves. Fiat was a bad idea, and something has to replace it. The crash is probably inevitable...