Back after a long weekend. Just bought some Gold futures as I see a little bit of upside here. No other trading positions as of now.
A few thoughts on Gold:
I just think it is the best brand-building exercise done over hundreds of years and Gold may just be the greatest brand ever!
Otherwise, why would one buy something which has absolutely zero economic utility? It is very difficult(almost impossible) to assess the "fair value" of Gold by any of the traditional valuation methodologies. The P/E (Price/Earnings) ratio of Gold is infinite since it has no earnings! What is the book value of Gold? Anyone?:)
Consider Silver, also a precious metal and has some industrial application.
I sometimes feel Gold is just perception & nothing else.
Gold is not consumed in any manner. One buys it just for the sheer pleasure of buying and possessing it. Amazing, Isn't it?
True, Gold acts as a store of value but it is very hard to imagine people using Gold to buy and sell goods/services in this modern age.
Please do share your thoughts on Gold in the comments section.
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Yes you are right. It is just the perception However, when any perception is global, it can't be ignored and taken lightly. The sheer pleasure of buying Gold is reason enough for all the 'buzz' about it. Like many other things, possessing gold implies a higher standard of living which stands true for the whole world. This has nothing to do with buying / selling but the sheer human instinct of possessing something rare makes gold precious. My two cents. :)
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