Would price of gold go under 600??????????

Some analyst says gold price would go down 600 in 2 months and DOW reach 10500 ... is this true?????????????

Public Comments

1. gold is a really bad investment so i don't pay any attention to that. invest in a solid mutal fund--you'll get a return than much better than the average 4% you get on gold.
2. If the stock market drops sharply, gold would likely rise. People go to gold in moments of economic or political uncertainty. So I doubt both of those things will happen. Good luck, Dana (B.A. Economics)
3. There's a tendency for any financial instrument (stocks, commodities) to return to a price that it was previously at. So, based on that, yes. I wouldn't discount the possibility.
4. (Analyst) Opinions are like belly buttons: everybody has one. Market prices, especially in the short-term, can theoretically go anywhere. Gold, as a long term investment, makes very little sense. You (or a company you own) have to store it someplace safe, keep it guarded, keep the temperature and humidity just right, and buy insurance for it. These costs continue as long as you own the gold. So essentially, you buy gold and pay to own it. The price of gold over long periods of time increases roughly in line with inflation. By comparison, if you buy the S&P500, you get paid to hold it (in the form of dividends) and over time receive a return in the form of capital gains that is generally expected to be better than inflation. Many people think buying gold makes sense as protection against the US dollar falling. In my opinion, it makes more sense to buy bonds of foreign governments in foreign currencies, or to buy companies that earn a lot of their money in foreign currencies (e.g. Colgate Palmolive), to express this view. You get paid to hold the securities and profit from the dollar falling versus your basket of currencies. On the other hand, if your view is that the value of ALL currencies is going to decline, then it can make sense to buy physical assets like gold that would be expected to retain their value better, even after paying for all of gold's upkeep.
5. most analysts are predicting a pullback of gold to around 700 before going back up. but if you're in it for the really long haul, what's the difference what the price is now? just keep around 5-10% of your income/net worth in gold that you never sell unless all hell breaks loose and your paper assets turn to dust. everything goes up and down at different times, and if the price does go down, just take some of your reserve cash and buy some more. (PS - the reason that you don't sell your 5-10% in gold is that it serves as your "golden anchor", or "wealth insurance". should you ever lose everything else, that 5-10% will more than make up for your paper losses...)