A very very HAPPY NEW YEAR to all the OP readers and their families. May this new year and the years ahead bring lot of happiness, peace and love to you and those who surround you! Wealth is an outcome and may your investment/ spending actions result in accumulating wealth for you and your families!
Why I said historical welcome, in the recent history Gold has never closed a month above $800/ounce (Abs $$, not inflation adjusted)! If you study gold prices for monthly close, you’ll find that it is on rising trend and monthly averages has been higher and higher for the past several months. I have been bullish on gold and I still am. It is not designed for faint hearted or for short-term investments, it is “The symbol” of real wealth. Since the history of mankind evolution, gold has been the symbol of wealth, across nations in one form or other. It has been the real currency in almost all the civilizations.
Here is a historical 600 years gold price chart (Courtsey – Historical Charts of Interests). This is to give you a perspective that gold is no where near it’s peak in terms of 1998$ and has far more legs to run. I am not saying that we’ll see all this within couple of days or months, but I feel quite positive that we are yet to see a major golden bull. As most of my mentors advise, gold is never “invested”, it is accumulated and it is accumulated over a period of time. To understand gold’s history to satiate intellectual curiosity, here is the history of gold.
I receive many questions on how to invest in gold, so here is a site named “Gold-Eagle” that has lot of references, free newsletters, technical analysis and names of instruments that may help you “accumulate” gold. Of course, the most authoritative website is World Gold Council, that can help you understand trends, statistics and supply & demand perspective.
Oh BTW, the most populous nation on the planet earth, China, has overtaken US in Gold consumptions. Thanks to the economic liberalization (or is it to safeguard it’s own trillion dollar reserves to move from “paper” to “real”? you bet, it is). I’ll leave it to you to “Imagine what’s next”? It’s only IC of BRIC!
Unlike many other commodities, Gold is probably the only most widely traded commodity that has most of the quantity still available above earth since the first time it was mined.
A golden happy new year, welcome 2008.
Happy investing and profitable trading, OP