Retain all data. Research the historical price of gold from 1970 to 1978 and analyze the patterns. Inflation and elevated interest rates are anticipated to propel the value of gold even higher in the foreseeable future. Currently, the price of gold bullion remains relatively moderate. What alternatives have you contemplated? Generally, cash proves to be suboptimal for most purposes; conversely, gold serves as a vehicle for long-term capital preservation and sustained profitability. Personally, I lean towards investments in stocks for their potential for short-term gains, alongside a speculative venture into cryptocurrencies. If I were to engage in purchasing at this juncture, I would be willing to acquire sovereign coins for up to $2.5k. A 10% premium may be deemed acceptable, although historically, a 4% markup has been customary. Is this valuation considered high? And will it retain its elevated status five years from now? It’s imperative not to confine our perspective solely to the immediate future. Reflecting on my past experiences, I acknowledge overpaying for my initial $20 St. Gaudens gold coin back in 1968, at a price of $90, a decision that continues to vex me to this day. Similarly, sentiments echoed on this platform three years ago regarding the perceived overvaluation at $1750 serve as a cautionary tale, urging prudence until the price dips to $1600.
Regarding sales, I relinquished nearly 70 ounces at $900 each under the assumption of a market bubble—a decision I now view with a measure of regret. Additionally, approximately 25 years ago, I sold 7 ounces at $330, a transaction I ruefully conducted with my brother, who takes pleasure in reminding me of my misjudgment. Swift conversion of paper assets into tangible assets remains paramount. There is presently no indication of an impending decline in price. Curiously, both the US dollar and April Gold futures have experienced simultaneous upswings in recent weeks. It is imperative for fiscal authorities to address burgeoning debt/deficit concerns and navigate geopolitical tensions without instigating global conflict or jeopardizing the US dollar’s standing as the world’s reserve currency. Contemplating potential scenarios, I ponder the repercussions on gold prices should a fortuitous strike by the Houthis result in the sinking of a US Naval vessel in the Red Sea, captured on film and disseminated widely.
Observing the correlation between dollar strength and gold appreciation over recent months, attributed in part to central bank policies and heightened civilian demand in China amidst a deflationary real estate market, prompts further consideration. Is the reported increase in price substantiated? Anomalies persist across various markets this year, with notable upticks in gold, S&P, and USD values. Personally, I intend to adopt a long-term investment strategy, despite murmurs of potential rate cuts amidst resurging inflation. The specter of a recurrence akin to the economic challenges of the 1970s looms large. I reserve any consideration of trading gold price fluctuations for the paper spot price ETF GLD exclusively. Contemplation of utilizing margin accounts for potential price surges, particularly in light of technical analysis signaling further economic turbulence ahead.
My current investment approach entails reducing exposure to gold while reallocating resources towards equities, silver, and precious metals. As gold prices ascend while silver stagnates, the appeal of the former intensifies. Could gold reclaim the $2100 threshold? Conceivably. Could it surge to $3k? It remains within possibility.