If you class gold as a risk asset here you simply don't understand what gold is and what is happening to the worlds financial system.
Exactly. That's largely the problem both here and in the general population. Only I would like to think that even some basic research would enlighten some posters in this thread to finally 'get with the program' about gold and contribute with some informed opinion, rather than 'it's gone up a lot so it's gonna come down a lot again.........sometime.....I guess'???
Many a fine gold naysayer have graced this thread over the years only to disappear under the weight of inevitability - of the fall of the fiat system and the rise of gold as a
store of value. They too were always predicting the imminent crash of gold, but thanks to greed & politicians it has gone from strength to strength.........that's not to say this correction won't be severe, and I hope it is.......
Gold is a risk asset to many market participants. They bought an instrument that had a risk of falling an value, in the hope that it will rise in value and can be sold at a profit. Sure gold is not a risk asset to doomsdayers stacking it away in a bunker under their house, but when you have a market as hyped as gold, you get allot of speculators in there for a quick buck. Big and small.
Not to me - it's relatively less risky than anything else
at the moment. I bought it and buy it to maintain 'value'. This is not a 'normal' bull market - it's an exercise in relativities - your store of value is most likely in a fiat form, which relies on the confidence of the market to maintain it's value, even though it's value is continually being eroded by the creation of excess fiat units, among other things.
It's relative to anything else whose 'value' is determined by the quantity and availability of dollars, as well as the confidence of the market to uphold that 'value' - enter exhibit A, the US housing crash. Right now there is very little confidence in the ability of counter parties to even pay back the principle let alone interest, so the 'credit constipation' requires those who do have lot's of cash to park it some where relatively safe e.g. the USD. And what little confidence there is is based on 'past perceptions' ie that the office holders of where the buck stops ie the central bankers, will be able to, again, steer the ship through and out of the crisis. Based on the numbers (that I and others have posted here & on other threads) & simple maths this simply won't happen - it's the end game, eventually!
You can either 'get it' and be prepared or follow the herd and get vaporised.....??