Just thought it would be good to talk about gold for all of our benefit.
Everyone seems to be in agreeance that Gold prices are just going to keep going up.
Fin Review had nothing but 'Gold' to say about Gold and investing in gold today.
My best performer, AVO, is sitting on heaps of Gold and its share price has jumped over 10% this morning.
Although there is minor corrections in the price of the precious metals, the general trend seems that it will easily reach expectations (anaylysts expecting US$850 an ounce, some US$1000).
The most interesting concept in AFR I thought though was that they expect Gold to reach levels it did in 1980 (due to many reasons, including geopolitical instability of which we have bucket loads of at the moment). They mention how Gold peaked at us$850 in 1980 and it will hit that again very soon, but interestingly adjusted for CPI etc its the equivalent of US$2500 an ounce now!
What does this mean? well common sense tells me that it is even more of a driver for the price of gold to go extraordinarily high and that it is still grossly undervalued as the demand and 'other reasons' as touched on above are even higher than ever, and its a finite resource, yet the CPI adjusted price for Gold is still very low. Technically adjusted, Gold is far from its US$2500 an ounce peak, and it seems the current climate and mood will see this want to edge closer and closer to this mark. Why shouldn't it.
Gold rush, I think its about to happen and could hit US$1000 an ounce very quickly with some sharp rises (mixed with more minor pullbacks) occuring in the near future.