96.3FM Radio Spot
Price of gold at $1406 – a new record
Silver @ $30 – a new record
Can we trust it – or is it a 21st century version of the Tulip Bubble in 1637
How do we generate wealth in such uncertain times.
How do we generate wealth when the reality is for most Canadians that every penny of household income is gobbled up in monthly expenses?
I thought would go back in time to put some perspective around the current price. I was reading a report issued by Scotia Capital in April 2006 and they were calling for a gold price target of $555. That's what I do for fun. Gold has come a long way since then.Where gold goes silver will follow. Gold prices are influenced by a number of factors. Gold is priced in US$ so when the US$ weakens gold prices tend to rise against most currencies or when political, social or economic uncertainty makes stocks and bonds less attractive to investors. Since stocks and bonds are attractive right now gold is driven by US$ weakness and maybe the Indian wedding season. If we have a 3rd round of monetary easing in the US we may see gold go higher. At some point like everything rational judgement shifts to irrational judgement and a bubble forms. Where that point is I don't know but for now there are certainly enough factors in support of gold to drive the price higher. If you concentrate your holdings in gold you have an opportunity to create wealth by speculating on the price of gold. Gold should form part of your diversified portfolio but I wouldn't roll the dice on it.
Silver @ $30 – a new record
Can we trust it – or is it a 21st century version of the Tulip Bubble in 1637
How do we generate wealth in such uncertain times.
How do we generate wealth when the reality is for most Canadians that every penny of household income is gobbled up in monthly expenses?
I thought would go back in time to put some perspective around the current price. I was reading a report issued by Scotia Capital in April 2006 and they were calling for a gold price target of $555. That's what I do for fun. Gold has come a long way since then.Where gold goes silver will follow. Gold prices are influenced by a number of factors. Gold is priced in US$ so when the US$ weakens gold prices tend to rise against most currencies or when political, social or economic uncertainty makes stocks and bonds less attractive to investors. Since stocks and bonds are attractive right now gold is driven by US$ weakness and maybe the Indian wedding season. If we have a 3rd round of monetary easing in the US we may see gold go higher. At some point like everything rational judgement shifts to irrational judgement and a bubble forms. Where that point is I don't know but for now there are certainly enough factors in support of gold to drive the price higher. If you concentrate your holdings in gold you have an opportunity to create wealth by speculating on the price of gold. Gold should form part of your diversified portfolio but I wouldn't roll the dice on it.
posted by David Allard at
8:04 AM
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