It's so great that this blog is getting readership from all over the world. Thanks for the question (although apologies that I didn't see it until now as it was hidden in the comments view). I'll set up an email for questions shortly.
Jason asked what my view of Gold in the long term was.
The chart below from here shows the price history for gold over the shorter term. The gold prices have hit successive new highs in the last few months.
Tracking back to 2008 and 2007 the gold prices averaged between 500 and 800 dollars an ounce which show that either the dollar is weaker today vs gold or there has been increased demand in gold.
However looking at the dramatic increase in the price of gold to almost double that of 2007 levels would indicate that something has changed in the game. Either gold is suddenly in short supply (scarce) or the demand levels have sky rocketed (selling like hotcakes).
The latter appears to be a reason that gold has risen and is tipped by this article to double by 2015. The article evidences growing demand for Gold in China and India from increased wealth - meaning that the market and pie for gold is larger now. Indeed, according to China Daily in 2009 there were 825,000 millionaires in China.
According to Wikipedia (alas public information but maybe not accurate) consumer gold jewelry accounts for over 52% of all gold world wide, followed by Central Banks (18%), Investments (16%) and industrial gold (12%).
So, if China and India are getting richer and do love Gold... it could be plausible that gold will rise in the near future as more people get rich.
So, what is my position on Gold? I hold no position. I can understand the case for demand and wealth but believe that the technical analysis and world economy are too weak to say this will hold. I would not be comfortable investing in gold at the moment.
My money remains on a relatively safe bet... like the Lakers to winning the NBA Championship (yes!) or Brazil or Germany winning the World Cup.
C'est la vie. Let's see what happens, Jason.
What's up Jono? www.whatsupjono.com Breaking Business News, Analysis, Trends, Charts and Opinion
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