RE: RE: RE: RE: Ernie LaLonde - BNN The stronger the economies of the world get, and the less worry about job loss and hardship on the horizon, the lower gold will go.
Personally, I see the North American economies recovering and the recovery will accellerate in the coming years. If I am wrong, and they don't, gold will either maintain the current price or rise... but people who are already cash strapped are not going to be taking part in a gold market that already ran away from them, when they can't even make the morgage payments on the house as it is.
As the economies improve, you will see a lot of central banks flooding the market with the stuff, when they think they can sell it and lock in a tidy profit... after all, they have to pay storage fees too. It won't take many floods of "tons" of gold on the market to drive that price way down; and in the flagging market the main use for the stuff is for electronics... not much of a demand if you ask me.
I'd call most people who buy gold "gold bugs"; and either you are, or your not one of them... a lot like a hockey fan... either you are immersed in it or you aren't. True you may make money on gold if the economies don't recover in the forseeable future( and you already own it), but over time, we will see $300.00 gold again.
The best way for someone to get over the gold bug is to buy a couple ounces of the stuff and sit on it for a while... when you've paid $40.00 a year for the safety deposit box, it doesn't take many years of gold price flatline to make your "investment" flatline or decline as well.
Take a look at this chart:
https://www.macrotrends.net/1333/gold-and-silver-prices-100-year-historical-chart
Had you have bought gold in January 1915, for $450.00 /oz and you paid lock box fees on it (say average $10.00 per year for 68 years), you would have had to have sold it for north of $1150.00 just to break even!
If you managed to sell it at the very top for $1975.00 you would have made $845.00 clear... not even triple your money over 68 years! and I think you would have had to have spent more than $10.00 per year on average to store the gold. Given that most investments are expected to double every 7 years, that means this here fella lost out on just shy of a 10 bagger in almost any other investment he could have made... and an investment in a house would have been much the wiser.
An old neighbour in a larger Canadian city, built his own house in 1954 for $3,200.00; he sold it in 2002 when he went to a seniors home for $92,000.00... not even near the same timeline, and far better investment decision; even though the "maintanence costs" aren't fully factored in here either.
Having said that, the best part about gold over any other investment is that it doesn't decay, doesn't tarnish, and rarely goes below $220.00/oz... if you've made money on the gold you own... I'd be studying that chart, and the possibilities for the North American economies pretty hard.