Even moderate inflation (eg at a 5% 'official rate') plus real gold price increases could easily push it to $3k in three or four years. Lots of profit for the miners.
Owning gold mines is owning a company that 'can raise prices with inflation' - in fact the real price of gold will go up with inflation, while expenses are basically tied to the rate of inflation. So its a leveraged position on gold that can pay dividends, etc. You don't have to buy the metal.
As an Investment, Gold's Just a Brick [View article]
Gold is about $1k now. With a doubling of prices over the next 5 years it should go to $2k. But if inflation hits like that, people will run to it - which will double the price. So $4k within 5 years. If you want more leverage than that - buy the gold miners.
Have no idea where the market, gold, is etc, but when analysts start saying that 'this time is different' it is one sign. Its never different. There are 6 billion people on the planet. Only 2 billion have ever used commodities up until now. The other 4 want in.
Look Who's Betting on Inflation [View article]
Asia, Europe and Russia love gold, likely more than Americans.
Look Who's Betting on Inflation [View article]
5 Reasons to Avoid the Gold Rush [View article]
As an Investment, Gold's Just a Brick [View article]
Own Gold? Time to Fold [View article]