“Gold is still the ultimate store of wealth. It’s the world’s only true money. And there isn’t much of it to go around. All of it ever mined would fit into a small building – a 56 foot cube. The annual world production would fit into a 14 foot cube, roughly the size of an ordinary living room. If each Chinese citizen were to buy just one ounce, it would take up the annual supply for the next 200 years.”
According to the MarketWatch, Gold remains a global growth story everywhere. http://www.marketwatch.com/story/gold-falls-as-recent-spike-triggers-selling-2010-08-18?dist=countdown
We’ve made our own research based on LinkedIn questionnaire.
Some guys are totally sure it is a BUBBLE because:
- things go up and go down, when things are up – they tend to go down next
- gold is a commodity, not money
- it is driven by speculators and market manipulators
Others stand firmly for a BOOM because:
- gold will continue to trade higher as it becomes increasingly clear to more people that the developed world is headed for very difficult times for a very long time
- most of the time, it is not “needed”, but like health, auto and homeowners insurance, you will be glad you have it if disaster does strike
- gold is always a boom, boom, boom……….)) (pretty simple answer still makes sense)
What do you think about it? What are your predictions concerning precious metals and their significance in contemporary financial market? Do you agree that gold is universally hated by most financial pros?