Nikodeus

The Death of Gold?

Feds are printing $2 Trillion in new USD bills. Banks are hiding $1Trillion in bad credits, making forced sell-offs a certainty in the stock markets. Oil is at an all time high of $120. It takes oil and energy to produce gold. This will reflect into the prices as it has in other commodities. World gold production is giving diminishing returns. The gold will go up slowly and retain it's value nicely. Much better than any stock that is at risk of the company going bankrupt if the worst happens and bank runs and series of forced sell-offs cause a market crash.

Gold is a safe-haven at the moment in terms of retaining value and risking only a moderate pullback. Buy at dips and keep long-term, I say.

If and when oil starts to come down to around $50 per barrel, gold will too, but until then, the energy, the consumables and work it takes to produce gold, it is directly proportional to the oil price and energy used to produce it. The practical amount of work, consumables and energy used, just does not change in gold production and there is no miracle cure for producing more, unlike in perhaps food or energy. Gold is limited. Price of work is going up as food prices go up, and so have energy prices. I view gold as a long term safe-haven backup.