commodities gold Markets

Shiny Doorstops Great Again! Goldman Lifts Gold Price Target

"Worth its weight in"...

"Worth its weight in"...
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6 comments on “Shiny Doorstops Great Again! Goldman Lifts Gold Price Target

  1. Over half of the world’s population (women) love it. People in emerging economies love it. Why? I don’t know, but that’s how it is. Gold will be visiting $1400 fairly soon IMHO….thanks.

  2. Love your passion H but the age old question somewhere around 6000 years is always the same, why have kings, kingdoms, wealthy, poor, banks, central banks and eventually every Tom, Dick and Harriet run to it in times of recession, depression, war and so on and so on. They must all be wrong????????????? Yep, the doors must be stopped.

  3. History tends to be written by the Victor not the Vanquished.. Ask the later what occurred when they moved on after losing a war and being expelled with a suitcase full of worthless fire starter. I remember my mom’s cynical jokes as she tried to light her coal stove with some currency when I was only four… The take away is ‘depends if you think you will ever be vanquished ‘…

  4. I’m a woman and oddly I agree that it’s just a metal. Too much environmental damage to mine it. And for what? To make ingots and bury them somewhere in vaults. A monument to human madness.

    Anyway until it’s considered a store of value, like a box that contains dollars, it will be bought when markets smell troubles. You need a really pessimistic view to buy gold, like: if I park cash in a bank the bank could default and I lose my money ( I speak of millions, not the small sums protected by law).
    Or: I could buy bonds but maybe the US defaults. And so on.

    Probably those who buy it are the same guys that purchase atomic refugees in New Zealand.

    But there could be another reason for the rise. EM Central Banks usually enter into gold swaps with the Fed, ECB, BoE. They do it to get dollars, in fact they borrow the gold with the swap, sell gold, get dollars, and defend their currency, like last summer. Technically a gold lending is treated as gold that is still in their disponibility by Central Banks, so in the Central Banks balance sheet you always see the same amount of gold held, no change. I read reports and reports on gold, it seems only a few participants/analysts are aware of this dynamic.

    When things are again quiet, then the gold swap is unwinded, Central Banks buy back the dollars, use them to purchase gold sold some months earlier, and close the gold swap. Hence the rise.

  5. Some of us are old enough to have watched Twilight Zone, The Rip Van Winkle Caper. It’s only a matter of time, and maybe a little less anti-science bias….

  6. Gold has value because there is a major investment of time materials and money to mine it, process it and form it into a storable and saleable item. It will not go down to a value where the mines lose money when they sell it. They will simply hold it back until the cost goes back up. This will always be the base value of the metal. It is a great holder of value because if inflation raises it’s ugly head and the dollar drops in value, gold will rise in value to match the true value of the effort to produce it. It can rise in value due to demand if in short supply, the same as any commodity. But the spikes in price usually return to the real value in time. I have a feeling that Mr. H wouldn’t throw his doorstops out with the trash if the dollar became valueless and gold soared.

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