Gold or Currency… Which Would You Rather Hold?
GoldMoney.com's James Turk hasn't been mislead by the "stability" of the U.S. dollar...
"There is never any certainty when it comes to markets. We can only make investment decisions based on probabilities," says he. "Importantly, we can increase the odds in our favor by following two basic rules. Buy assets that are undervalued, and follow the trend.
"We are following both of these rules when buying gold.
"Gold is rising against all of the world's currencies. The rates of increase are of course different as some currencies are weaker than others. But regardless, it is clear that gold's long-term trend is rising.
"What's more, gold is still undervalued. There is any number of ways to make this point, but perhaps the simplest is to look at the price of gold in inflation-adjusted dollars. In 1980 inflation-adjusted dollars, gold today is only $250 per ounce, which is not even one-third of the $850 record high reached that year.
"Gold is breaking out around the world. People are fleeing national currencies. They are moving their wealth into the safety and security of gold, which is not too surprising. All national currencies are being debased by inflation and/or other monetary disorders. So what would you rather hold? Gold, or some national currency?"
More about profiting from gold.
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Comment by Isaac on 9 May 2007:
When the rubber hits the road;when people realise that currency is just paper and digits,gold will hit the roof.
Comment by Robert Cassidy on 12 September 2007:
why is gold underpriced ?
Largely because of central bank- lending and dumping of monetary gold reserves - via bullion banks ..... unlike sales , lending is not reportable ...but is also not sustainable !
Comment by Geologist Chuckie on 10 November 2007:
It's only a yellow metal. The price goes up, the price goes down and no-one knows what the future may bring.