Forum > View Topic
by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 8936
Posted: Feb 22, 2010 5:00
Comments: 8936
Forum Topic:
Gold, Oil & Indices (Equity & Bond Indices)
Discuss Gold, Oil & Indices (Equity & Bond Indices)
don't think that much my broker does not support AUD/XAU
It is 100% that gold will reach 1400!!
It makes Chart analysts Elliott wavers and so on a living
They were bad off if prices were complex numbers ....
But seriously what exactly determines the "right" price of gold in USD?
Now why are folks selling eur for Usd and Jpy?
Because the EUR could become illiquid that's the reason.
Certainly gold is safe but it is illiquid by definition. That is to say, there are few inflation effects for gold:
mining of new gold
and
big selling by central banks
now if CBs sell gold it is because of credit freeze and illiquidity.
USD and JPY are both very liquid assets the whole world is in USD buying frency but there are still plenty of USD to keep the fiancial systems, and trading of commodities, liquide.
Merging some more theories in the picture and given the ultra low UST yields I conclude the fair price of gold is around 800 USD.