Will Gold prices hit a bottom in 2018?

Price have been steady around 1200-1300 for quite some time now and may not be as a bad of an idea to have as a longer term (1-3+) investment after things settle down post-tax bill? I'd be very curious to learn more about NUGT & JNUG since they are 3x leveraged and potentially good (albeit massively risky) trades when gold finally recovers?

 

I think we're seeing, now with the introduction of cypto's, the demonetization of gold. Gold hasn't been used as base money for quite some time, but it maintained its exchange value via central bank holding and the potential for it to reemerge with the anticipated collapse of fiat money. Now that we have crypto's, I no longer see gold operating in that capacity.

I wouldn't hold it under any circumstance.

“Elections are a futures market for stolen property”
 

I'm a newb as well, so pro's please feel free to correct/add to my comment as necessary. From what I understand, the price of gold to some extent indicates people's comfort level with equity investments and the economy as a whole.

When people feel uncomfortable with stocks (especially during turbulent economic times), they tend to gravitate towards gold, a hard asset, which has traditionally been viewed as a bit more stable. With more people moving towards gold during tough economic times, you can, in general, expect to see the price of gold go up when the economy is not doing so well, and go back down when the economy is booming.

 

a lot of panicky people bought gold over the last few years, driving he price up. Those same people started panicking when the value started to wane. Gold is more or less a measure of fear in the financial markets - the higher the fear, the higher the price. Not saying it's a bad investment hedge, but keep it to about 10% of your portfolio.

 

I never understand how people are surprised by gold price volatility. Gold pays no dividends and has limited industrial uses. Basically it is inherently worthless and derives the vast majority of its worth from demand by investors who view it as an inflation hedge. It's a very weird asset that is very susceptible to the emotions of the market, because you can't model what it should be worth in any theoretically sound way. That is why it's such a volatile investment.

 
ArcherVice:

Prices will likely begin to stabilize around the all-in producer break-even cost of production. All the rest is just noise or posturing for attention IMNSHO.

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I am wondering what will happen to gold prices as India's guaranteed demand (Google how that country think about gold and the social value of it) moderates. I think as the country westernizes/modernizes that demand will enter a secular decline.

Whether that's enough to meaningfully affect gold prices (and what the timeline might be) is a different question.

"Do not go gentle into that good night"
 

Easy on the monkey shits. I think people are still on the sidelines a bit. The seemingly one good thing is that our job numbers and payroll data are improving, which has a very positive impact on all things consumer related. The dollar is still strong relative to other currencies, and global economic fears continue. The rise of the dollar has hurt our exports, manufacturing is still contracting (but improved last month), and oil prices are still low - even if they bumped up a few dollars/bbl. There will still be some bankruptcies this year to come in the o&g market, and I think banks will take a hit. We are seeing banks increase their loan loss reserves by the billions (even though it's not much when you consider the overall balance sheet of some of these banks). All in all, there are still some concerns and headwinds. Just because oil rose to $35 a barrel from $29 doesn't mean we are out in the clear.

 

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