The Gold Price this week went over $2900. "The price of gold has run away from reality" Is that correct?
"Precious metal beats records despite high interest rates and strong dollar – a bad sign"
More from the Article: "The price of gold exceeded $2,900 (￡2,330) an ounce this week for the first time. Since October 2023, it has risen by more than $1,000 an ounce. The price is three times higher than it was a decade ago. It has grown 10-fold since 2000. What is going on, where does it go from here and?how best to invest?
Gold should not really be this high. Traditionally, the precious metal performs badly when interest rates rise. That is because, unlike bonds, shares, cash or property, it does not pay investors an income. When the yields on those other assets are attractive, there is less incentive to hold “the barbarous relic” as the economist John Maynard Keynes called gold. That is the case today but still gold is hitting new records.
The gold price should also prefer a weak dollar. The metal is denominated in the US currency. When other currencies are strong versus the dollar, they can buy more gold. When they are weak against the greenback, they can buy less and so the price should fall. Today’s Trump-fuelled strong dollar should be a headwind for the gold price. Clearly, it is not."
Is what is written above correct, I really don't know!
But then why is the Price of Bitcoin $97,500, OK, not an all time high which was recently over $106,100. October 2023 Bitcoin was c. $34,000.
So Gold from October 2023 is up 1/3, however Bitcoin has nearly tripled in value! OK, there's some reason for that. It became an ETF, it became more or an investment as Blackrock and other Fund managers bought substantial stakes! But what is a Bitcoin worth? Is $97,500 realistic?
OK Bitcoin and Crypto has become more mainstream, but I still question, what is the Real Value of a Bitcoin? No one can answer that question!
Let's take the next paragraph of the article: "So the performance of gold is telling us something else. The message it sends is that all is not well with the world. It says that investors are worried and history shows that it is unwise to ignore the signals that gold sends at times of stress."
How do you value a share, 1 method is the price to Earnings P/E. I remember is some 30 years ago in UK that the average P/E of good stocks were 8 or 9, today the S&P 500 & DJ is c. 30. That says to me stocks are well overpriced!
Britain is just above outside Recession, Germany and France and many other European countries are in Recession. The US is not in recession, but Recession is possible in 2025!
I think that Gold hit $2900 because people are very worried, I think that the more interesting 1 to buy is actually Silver!
If the World does go into Recession, which could become a Depression, what are the 3 most important things to sustain Man? Water, Food and a Roof over his head!
What is the advantage with Real Estate? You can't live without it! It gives an income, which should at least keep place with inflation. The Capital value of good Real estate will more that keep pace with inflation.
To Brit's if you have money, unless you are a fan of Keir Starmer, the best advice is to exit the UK!
When it all blows , do you really want to be in dreary Britain! One of the best options is: Cyprus.
Cyprus, drive on the Left, take your car with you.
Cyprus has British plug sockets! English very widely spoken in Cyprus, English Pubs, English Fish and Chips!
Cyprus has 300-340 days a year sunshine.
A country that is growing, in a Strategic location at the crossroads of 3 continents (Europe, Asia and Africa)Safe country, rich in culture & history? Member of the EU and Eurozone.Taxation:
Lowest tax rates in Europe :Highest rate of Income Tax 35%. Maximum 5% tax on Foreign Pensions. No Inheritance Tax. Corporation Tax 12.5%
And, a great place to bring up your children.
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