Will gold prices move higher in the next 5-6 months?

Question

Will gold prices move higher in the next 5-6 months?

Answer 1

Yes I hear that it will double way before 2009

Answer 2

Gold is a hobby or a hedge, not an investment.  Historically, gold prices rise when the stock market is stumbling.  The market also ALWAYS rises once an election is over, since whoever is elected, the uncertainty vanishes.  Therefore, there is a high probability of a market spike upward between now and February (six months hence) since the election will be over.  Along with that spike in stocks, gold prices will tumble, especially when you consider how many "first-time" gold owners will be trying to dump their gold holdings so they can get back into stocks (when it's already too late!).

As individuals, most folks are pretty smart, but crowds are always dumb! Never overlook the fact that if you had bought $1567.73 worth of gold back in 1980, today it would be worth $790.40 in terms of buying power! In other words, each $1 worth of gold would now be worth less than 50 cents.  A dollar's worth of Microsoft stock purchased in 1980 would now be worth about $312...

Answer 3

I think so.  The US government shows no sign that it is going to live within its means anytime soon.  Can you say "trillion dollar deficit"?

As the US Dollar approaches the value of toilet paper, gold prices (at least in US dollars) will go through the roof.  

I wonder what the price of gold is in Zimbabique dollars?

Grandpa

Answer 4

Over the next 5-6 YEARS I expect gold will move significantly higher.  Over the next 5-6 MONTHS the outlook is not so certain.  Oil and gold usually move in tandem to some extent, and the present trend in crude is down - at least for the near future.  The dollar also appears to have bottomed for the immediate future, and the dollar and gold tend to move inversely.  Commodities in general also appear to have topped for the time being and may experience a pullback.  Gold may also experience a near-term pullback as well.  But if you are investing for the longer term, buy the dips - the future looks golden.

P.S any attack on Iran and I retract all of the above - the sky is the limit for gold

Answer 5

Most analysts expect all precious metals to continue to rise.

Answer 6

Gold will most likely move up over the next 5-6 months. I do believe what the previous answerer believes about gold. That is that it is a poor long term investment. However, it certainly is better than Microsoft for 5-6 months. We are currently in a horrible financial crisis that most likely will get worse over the next year, two, or even worse, a decade. The biggest driver of gold will be worldwide inflation, and in dollar terms the monetization of debt. By monetization, I mean the printing or creation of dollars to pay rotten debts down, or simply service them. Further, monetization will likely happen to continue to rescue, or nationalize failing banks. These things will continue to push gold. Even if it only rises in dollar terms, i would rather be in gold over any investment in such times.

There are a lot of great vehicles for investing in gold. Owning physical is best, but the ETF's such as GLD are good vehicles and allow option hedging.

Here are some useful sites:

http://www.321gold.com

http://tradelines-swingtrades.com/

http://www.kitco.com/

http://www.financialsense.com/metals/mai...