Well, Au is flying out the gate in Europe and Asia today, isn’t it? $1163 and counting at present.
My take is that panic buying is setting in, which will lead to quite a bubble. Knowing when to get out is always the trick.
I say $1500 in 5 months and $2000 within 18 months, maybe sooner. And who can blame the buyers? Folks holding currencies are going to feel like they’re holding cotton candy, more and more so as time goes by.
Is this a case of panic buying of gold, or panic selling of dollars?
I think you’re right about the bubble. This time I decided that I’d get in early... ;)
I also wonder sometimes if the Lord is motivating me. I mean, out of the blue I suddenly needed silver like a man in the desert needs a drink of water. It was odd and hit out of nowhere.
Oh, and to all who say silver is the play, not a bad idea, IMHO. The two metals don’t always track parallel. I bought a lot of silver about 3 years ago at $9+/ounce, on a dip. At that time it was trading at a 1:77 ratio vis a vis gold. I feel comfortable with a 1:50 ratio as being the proper relationship. I have seen it as narrow as 1:33. If it ever gets anywhere near that low ratio again, I’ll trade it all in for gold. Acquiring more gold via this strategy has been a pet move of mine for over 35 years.
The great thing about silver is that you will always be able to spend it on the black market. For this reason, I believe the US Eagle 1 oz coins are always going to be universally accepted. There are also Philharmonics and Leafs, but their per-coin premiums can be a bit higher. I have made up my mind to stay away from the private mintmarks on 1 oz rounds, even though they are slightly less expensive.