The gold price simply doesn't matter. Gold's value as measured in a fiat currency is arbitrary. Sure, adept traders can take advantage of short term price fluctuations, but bullion owners invest for the long term, and they do so to protect their wealth.
Some are calling for $5000 (or even $10000) gold. It might happen. Who knows? But if all other assets grow at the same rate, the sum gain is zero. Gold growth in dollar terms does not guarantee increased wealth.
On the contrary, it is wholly conceivable that the gold price could fall and you could make a fortune! If gold settles at $1,000/oz, but the DJIA, S&P, home prices, car prices, etc, all fall at a greater rate, your net gain is the difference to the downside. In other words, your net purchasing power would increase!
The real statistic worth measuring is purchasing power. Gold's real value is determined not in the price of a fiat currency, but as a ratio to other assets, and this is where gold has really shined over the past decade.
During the "lost" decade, in which the Dow and the S & P 500 flatlined, gold's performance became all the more significant for owners who had the foresight to hedge against a deadening economy
Despite the incredible housing bubble in the middle part of the decade, gold consistently rose against home values. In 2000, it took 705 ounces of gold to buy the same house you can purchase today for just 253 ounces..!!
Example in malaysia kijang emas price
1 oz in 18/7/2010 equal to RM 1080
1 oz in 3/2/2010 equal to RM 4005
In 18/7/2000 you need 185 oz for RM200000 kijang emas to buy the same house you can purchase today for just 3/2/2010 50 oz for RM200000.
if you buy 50 oz in 2000 equal RM54000 you just save RM146000..!!
Same goes for car and food...
Sure, for gold bulls it can be an obsession waking up every morning to check the kitco spot price. But in the long term, the move to gold holds far more significance, than a ten or twenty dollar price swing. If you can keep your head (and shirt) when all about you are losing theirs, that in itself will be a great triumph.
History will record our age as the time of the greatest economic meltdown the world has ever known. In the end, it won't matter if gold is selling for a trillon dollars or fifty dollars. What will matter is what you can buy with it.
sumber: scribd
Example in malaysia kijang emas price
1 oz in 18/7/2010 equal to RM 1080
1 oz in 3/2/2010 equal to RM 4005
In 18/7/2000 you need 185 oz for RM200000 kijang emas to buy the same house you can purchase today for just 3/2/2010 50 oz for RM200000.
if you buy 50 oz in 2000 equal RM54000 you just save RM146000..!!
Same goes for car and food...
Sure, for gold bulls it can be an obsession waking up every morning to check the kitco spot price. But in the long term, the move to gold holds far more significance, than a ten or twenty dollar price swing. If you can keep your head (and shirt) when all about you are losing theirs, that in itself will be a great triumph.
History will record our age as the time of the greatest economic meltdown the world has ever known. In the end, it won't matter if gold is selling for a trillon dollars or fifty dollars. What will matter is what you can buy with it.
sumber: scribd