Justification for gold to move substantially higher in price continues to press the boundaries of imagination. In this article we will try to filter the noise in the headlines and also simplify what has been marketed as something much more complex.
price vs value
Bitcoin And Beyond – Price Vs. Value
Always searching, always relentless in the quest for more, bigger, better, etc. It is a never-ending thirst that cannot be quenched; a hunger that cannot be satisfied.
Today’s investor seems oblivious to whatever it was that brought us to this point in world civilization. Economic fundamentals have taken a back seat to fantasy and hyperbolae.
Case in point: Bitcoin.
Gold – Bullish Or Bearish?
GOLD – BULLISH OR BEARISH?
What does it mean to say that one is “bullish” on gold? Or “bearish”? Or, more simply, what is a bull or a bear?
“A bull is an investor who thinks the market, a specific security or an industry is poised to rise. Investors who adopt a bull approach purchase securities under the assumption that they can sell them later at a higher price. Bulls are optimistic investors who are attempting to profit from the upward movement of stocks, with certain strategies suited to that theory. …James Chen, Investopedia
According to the definition, then, being bullish on gold is an indication that an investor can optimistically purchase gold and expect to sell it later at a higher price for a profit.
Gold Peaked In 1980
When gold’s price reached $850 per ounce in January 1980, it seemed as if nothing would stop the runaway train that was headed straight for $1000 per ounce. But it was stopped, and began sliding downhill quickly.
By June 1982, two and one-half years later, gold’s price had declined by sixty-five percent. At close to $300 per ounce, the price of gold seemed farther away from the $1000 mark than ever before.