Gold May Rise, But Is It Safe?

Reader Comments
Back to article

"Good as Gold, in God's; Silence is Gold..".

Andre Budianto 12:41AM November 09, 2010

when talking about commodities or financial products, there is no such a term called safe, only greater risk or lesser risk.
reason for current gold price rally is because global interest rates are at record low and expect to stay low for the most part of 2011 and with major economies such as US, UK and Japan competing with each other to see whose currency is cheaper.
the gold price rally is due to playing catch-up with other commodities which have outperformed gold and due to increase in risk appetite
I think gold price will start to crack when there is a meaningful rise in interest rates when US/EU economies start to see stronger recovery
you can call this gold price rally - gold bubble or gold hype, but this is engineered by the various governments who want to force people to take money out of the banks
bubble or not, it looks like going to last for a while unless we see another Paul Volcker !
http://sextisfaction.wordpress.com

Ng Eng Hou 5:03AM October 29, 2010

When other more practical sectors continue to increase returns and dividends investors will start to move away from gold and it will happen quickly. That's why its called a bubble. Not everyone who invests in gold can afford to weather a sharp downward move. I suspect it starts when the bond market implodes and that is a fairly certain fact.

JL Henry of TX 8:57AM October 25, 2010

In answer to the subject question: Only if the profits are converted to any currency but dollars.

Dew of CA 3:58PM October 22, 2010

just a peronnel thought, gold are precious metal and probably consider limited but the earth's resource. no matter its pure or mixture, there is a limitation.
the price might be high today, but down the road, it will go higher. simply because given the fact that it is well recognise world wide for its own metallic property and esp those who look at it as a form of status and luxury, there will always be high demand and once it runs out.. probably its really gone and yes, by that time, it really has peak its value(alhtough might not be in our life time). i wonder which looks better "hey! i got a tap made of gold" or "hey! i got a tap made of copper(just an illustration)
to make it short, i think if land value will rise, so will gold and when it run out of supply, we will know its peak price.

ronaldo 5:38AM October 20, 2010

Someday - hopefully soon - the general financial media and those who are only opportunistic visitors to the Gold sector, rather than long-term holders, will begin to understand that for most - not some, but MOST - of those who truly like Gold, it is a GROWTH sector, not a FEAR sector.
Gold in is a long-term, secular Bull market for two basic reasons:
The central banks of the world are just beginning to make Gold a much larger part of their reserves, with no looking back.
And Gold is a direct - that's DIRECT - surrogate for the growth of a consuming middle class - a bourgeoisie - in the most historically Gold-centric countries and regions on earth: China, India, the rest of Asia, the Middle East, Africa, and Latin America.
Even Europe, Russia, Canada, and Australia like Gold. The only truly Gold-averse countries on earth now are the US and the UK. Japan, which pretends to hate Gold, doesn't.

Venerability of NY 6:03PM October 19, 2010