The big fluctuations in gold are panic driven and dont last very long. But in the long haul, gold is the honest value of FIAT currencies. So from a store of value point of view, it’s a good investment foundation.
It has done exceptionally well lately when you compare it to other commodities. If it holds up in price, the mining companies can make good incomes again. Especially if oil trends down. Mines are energy intensive ventures. But there are some strong arquements that gold is in a rising bubble formation. But from a historical analysis, gold rises in real terms after a huge credit bubble bursts and we get strong liquidation pressure. This may occur as early as late October through to December. And right now the technicians are saying it’s very “over bought”. So I would not be surprised to see it drop for a few weeks or longer. At which time I will probably buy more as the world currencies look unstable going forward.
