"Reasonable price for gold". I would rather know the ultimate unreasonable price, in order to bail before the crowd, but...
in '78-81, gold went to $850. Based on inflation, increased world wealth, the entrails of roadkill, etc, $1000 doesn't seem at all unreasonable if gold takes off. The question is how much beyond that. In a bubble, could the hype be right and it goes to 5K? Who knows, but didn't Amazon go to about $400+? Gold has much more international appeal than the US stock market; in some Asian countries, it is how wealth gets passed on to the next generation. If they all hang on to their gold, instead of selling to crazed Americans at the peak and flooding the market, GOK where the bubble goes. As for when the bubble breaks, how about $600 for a price (dead skunk in da middle of the road gave me that one...this may stink worse than most of my bad hunches))
Prospects for silver are much better, not only because of the industrial demand, but because silver is very cheap compared to gold. I think the traditional ratio is 16:1; currently, it is about 64:1.
Sundance |
