GOLD, safe haven in troubled times?

Does anyone remember what happened to the price of Gold after the financial crash of 2008?

Although the price went down initially, it then went on a massive rally from 2009, eventually reaching a record high of almost $1,900 per troy ounce in September 2011.

Looking at the state of the market at the moment, what do you think will happen to Gold this time around and what will happen to the price be by the end of 2020?

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Good question @ZackofPynk. I do believe the situation we are in now is totally different that the financial crash of 2008. Back then, it had more to do with bank deregulation, bad loans etc. This time around it’s all about this virus and the “unknowns” associated with it. People are in a panic as each new day brings more bad news. Based on that, I believe Gold will suffer for now along with everything else…but once we get past this virus…things will get back to normal.

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I think the similarities are almost identical, traders cashed out of their gold positions to pay off losses and margin calls on the stock market.
The dollar is king right now, selling off assets into dollars and holding until there’s a clearer picture.
Back in 2008 after QE and interest cuts it was thought gold would surge as a hedge against the expected inflation from such measures. This didn’t happen, in fact stocks eventually boomed and rates remained miniscule, but gold did hit ATH in '11.
I doubt (only based on history) that gold will hit any ATH prices in 2020, but a steady rise above $1650-1700 maybe towards the end of the year as investors grow more confident?
2022 onwards I’m guessing $2000 will be smashed at some point, the financial system is broken, they can spin as many plates as they like eventually its all going to come crashing down… gold hedges this :grin:

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It’d be interesting to hear @Peanut view on this, as a professional that worked in the markets I’d find it really insightful

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In my opionion it has simply no sense the downgrade of gold value. it is the only asset (silver also it is, but less) that mantains value by centuries.
While $ € £ BTC … are simply ideas of value, gold (silver, commodities,…) are real stuff, and when all the things seem to go wrong, only real things mantain their real value

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more from the goldfinger Pynksters:

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Hi @ZackofPynk, I think gold is still a safer heaven than stocks and BTC. Gold has dropped by about 10% since mid february, and most stock markets and BTC have dropped more that double or triple that figure. The thing is, that in this crisis I beleive the most sought after asset, because of the level of uncertainty, is the US dollar and everything else is depreciating in relation to it.

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I’m in total agreement with you about the dollar @mosigman, the best haven in immediate terms by far.
Although, depending on your time preference,I think BTC will be a far superior haven than gold. Controversial I know :grin:, but after Mays halving (where the block reward to miners is halved so halving the bitcoin generated) the stock to flow of BTC will be approx. 52 from its current 27.
Gold had a stock to flow of 62 [this means it’d take 62 years at current mining rates to dig out all the gold in current circulation - i.e current Au annual mining is approx. 3000 metric tonnes, current circulation is approx 185,000 metric tonnes],the higher the ratio the harder the money, so, as time passes BTC becomes more deflationary due to its monetary policy, it’ll half again in 2024 bringing the S/F to 113, this will reflect the price point of bitcoin in the future having a S/F double that of gold.
Obviously nothing is certain, Gold will never go to zero, it’ll always have utility, Bitcoin may become the victim of a black swan event but as a safe haven its debatably the best asset out there long term.
Still, given a kilo of gold to sit on I’d happily oblige :wink:

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@stackem yeah, in the longer-term BTC has very, very good prospects. However, I also believe that some will always prefer gold, as a physical good, over crypto. We have to consider also the fact that gold has many uses, and that about 40% of its consumption is for investment purposes, while the rest is used for jewelry, electronics, medicine, etc. So I think as a near-term investment, for this particular coronavirus crisis, gold is safer. Although I mean, if you have a riskier mindset, huge opportunities for BTC investors this past week. :grin:

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Agree 100% Carlos. I think I went a bit off topic there.
Gold will always be a good safe haven, hell the central banks have been stocking up increasingly over the last decade, tells you something :roll_eyes:.
I think it spikes a bit around Diwali, Indian festival in November talking of jewellery, at least it did Nov last.
Yep, it was definitely a bitcoin investors dream this last week, not sure we’ll see lows like that again :exploding_head:

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:rocket: Gold going to the Moon!! :rocket:

Well, a little bit further actually, all the way to MARS :wink:. NASA will be using the low emissivity properties of gold in the oxygenator destined to turn the Martian atmospheric gases into oxygen.

https://www.kitco.com/news/2020-04-17/NASA-wants-to-make-oxygen-on-Mars-and-gold-is-a-key-part-of-it.html

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title is hilarious :upside_down_face: :heart:

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Terraforming Mars…Now i have to live other 250+ years…can’t miss the Mars terraformation. :fire::fire::fire:

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