Gold, unlike the Paper Currencies cannot be printed and circulated. USD is the only truly global currency which is linked to oil. USD is not hedged against Gold. So, US Govt prints and pumps into the market and with the US Govt`s deficit raising all the time, its just another currency bubble. It may not burst now, but for how long will it sustain?
Dear All, The production cost of Gold per ounce is around 760 usd on current prices of goods and services at the miners level and is sold to retail at around 1620 usd . In no way the prices can fall below Considering a mark up at mining company level and distribution by banks wholesalers and jewellers the prices can never fall below 1500 usd .The author is failing to establish the fact that Gold had grown at around 20% of the CAGR itself is the testimony that Gold is Gold . The stocks and shares of companies can never grow with ease and only the seasoned players make money in share market. Gold will always be the best bet for a common man .
