gemma4cash14 Jun 2010 10:31
If gold even doubled in price there would be a lot of sellers, and very few prepared to buy at that price. So, somehow I doubt if these predictions have the remotest likelihood. I think that, if even a doubling of gold occurred, we would have to be very concerned about our other asset values - in particular residential properties. I have been buying gold since 2000, and even that I bought last spring has increased about 30%, but I wouldn't buy much above the present level. A second (double) dip, if it starts to affect other asset values, is likely to hit gold too, as the bulk of people in the cash-rich parts of the world - e.g. China and India, will begin to feel the effects of the slow down and this will hurt their economies. If somehow you could encourage women in China to wear the lovely gold jewellery that Indian women sometimes wear, then perhaps there could be another surge. They would first of all have to improve their wardrobes!! Pinch of salt I say!