Usually when I see that phrase, it means that it's a good time to find a different investment...
>> Why will it not fall back to well below $1,000 and possibly as far as $850 this time?
uh... because it’ll fall back to $200 like the rest of the commodities when the coming deflation takes hold?
The Lipper Gold oriented Funds index is up 47.68% YTD.
What is the difference between priceless and worthless? A buyer.
The bottom line is that gold is a metal. Nobody needs gold to survive. And there is so little of it in the world that only a relatively few people can have any not just appreciable, but measurable amount.
If you take a gold coin to the supermarket and offer to pay for your groceries with it, they can likely only offer you its face value, if it has been made into a legal tender coin. If you say it is worth many times its face value, they would have to take your word for it, and they aren’t going to do that.
Nor are they going to give you change for what you say is its value.
It’s a pretty metal mind you. And it’s useful for electronics and industry. But its days as a currency are long gone.
People who have gold fever will always argue the point. But unless you have gold fever too, gold is just a metal.