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Lahore Real Estate Forum: Property News & Community Talk : ,

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   Jameel
Wednesday, October 20, 2010 04:26 AM 
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Some people believe that Gold price will never significantly fall but record of 35 ys is showing it had significant fall on many occasions, Though it has been going strong after 2001 stock market .com Flop. I am optimistic that we shall get a chance to buy Gold again in 1/2 of current price within 5 years.
Pardesi, Jeddah replied on Wednesday, October 20, 2010 05:43 AM 

The fundamentals of Gold are pretty dynamic & prediction becomes questionable based on any past record, rather it is based on current international imbalances & emerging future situations. After the major industrial revolution & complex financial transactions bankers, central banks & the governments deviated from the gold standards thus overplayed their credit creation abilities in the virtual scenarios. That resulted an artificial prosperity without productivity in many areas, e.g., Dubai; had Abu Dhabi did not supported it what would have been the consequence then. At present the currencies are so volatile that any upcoming eco-geo-political imbalance may change their values drastically (both ways). On the other hand, Gold is THE only commodity which is acceptable in all the corners of the world which infact is an authentic measure of determining the real wealth. Unless productive opportunities are not tapped around the globe, institutions will keep trying to invest in safe heavens like GOLD.
lala replied on Thursday, October 21, 2010 03:08 AM 

Gold is exhibiting classic signs of a bubble. When there is too much money chasing a commodity that is limited in supply, price goes up very fast and then collapse. Tulip mania, internet bubble, dubai real estate are all examples of this.

Various attorney generals in US states are alrady warning regular folks about the risk of investing in gold. They are concerned about fly by nite investment houses promising returns in gold investment. While their concern is fraud, the fact there are so many people willing to invest in gold tell you the risk of collapse.
Expat replied on Thursday, October 21, 2010 05:40 AM 

Investment in gold is good for short term( less than a year) and for longer period i.e. 10 years and more. In between it may collapse. If you see the history of gold price in http://goldprice.org/gold-price-history.html you will find many up and down but ultimately for longer period it gone up.
After the recession many major currencies have lost their values and people believe in gold. On the other hand you can say that it is an international currency or commodity but not a necessity like shelter (houses), food and services, etc.
Soviet Union was collapsed even after having huge reserves of gold. So for the temporary or long term investment, gold is good but not for mid-term investment. People welcome to put their analysis.
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