If you invested in 1980, depending on which side, yyou may have died holding the gold till the 2000s!

However, if you invested in early 2000s, you would have made a killing.

Interest rate hikes means gold price falling is a FALLACY according to HISTORY

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Gold and Fed Rate Hikes
Adam Hamilton February 13, 2015 2864 Words

Gold’s sharp early-year surge has fizzled in recent weeks as investment demand faded. The primary reason is the universal belief that the Fed’s upcoming rate hikes are very bearish for gold. Higher rates will make zero-yielding gold relatively less attractive, argues this popular thesis. But history proves just the opposite. Gold actually thrives in rising- and higher-rate environments, so rate hikes are nothing to fear.

This notion definitely seems counterintuitive today. When the Fed finally begins letting interest rates start to normalize after actively suppressing them for years on end, yields on bonds and cash in the form of money-market funds will rise. That will make these asset classes more appealing to investors. So they will migrate out of gold, which yields nothing, into the new higher-yielding bonds and money-market funds.

This logic is simple, which is why the great majority of investors and speculators today believe that gold is going to face relentless selling as rates rise. But rather than accepting this conventional “wisdom” at face value, why not see what’s happened in the past? Did the earlier periods of rising and higher rates suck vast amounts of capital out of gold, deflating its price? If not, then this popular thesis is dead wrong.

It’s funny how ideas take root and flourish in the financial markets. Traders are highly emotional, with most of their trading decisions based on greed and fear. They also have an overwhelming status-quo bias, expecting current market conditions to persist indefinitely. Thus any rationalization of why stock markets will rally on balance forever while gold fades into oblivion are quickly seized on and trumpeted as truth.

With traders’ collective greed and fear constantly overriding their rationality, popular fallacies always exist. They include widespread beliefs today that market history proves are ridiculous. Such as the ideas that stock markets can rally perpetually without corrections or bears, that stock-market valuations don’t matter, and that central banks can successfully manipulate prices forever. History makes a mockery of these!

Yet traders believe what they want to, whatever seems to bolster their views that existing trends have turned permanent in some new era. But the past record is crystal-clear, financial markets are forever cyclical. Asset classes rise as they grow popular, but then inevitably subsequently fall as they drift out of favor again. Gold is no exception. Gold can’t drift lower forever any more than stock markets can rally forever.

So instead of just blindly accepting today’s belief that the Fed’s rate hikes are bearish for gold, why not check the historical record? This first chart includes over 45 years of daily gold-price and interest-rate data. For interest rates I used the yields on benchmark 1-year Treasury bills and 10-year Treasury notes to represent both the short and long ends of the yield curve. Are rising and higher rates really bearish for gold?



Read more here

http://www.zealllc.com/2015/goldfrhk.htm

Let next generation take care of themselves.

i make for myself.

Gold is more for hedging.

The price of gold is rather controlled by the paper gold backers. So it's rather difficult to say how much we will see.

Unless world war 3 starts of course

Does that equate world war 3?

where got its on 169 now?

Gold hedge against?

Pls DO NOT buy gold now.
Save all ur cash in FD. Earn interest first. Once the spot price skyrocket OR RM depreciated like hell, then only withdraw from your FD.... buy from me... hehe...

Just kidding.... hehe....

Know your financial objectives then strive to achieve it!!!
Diversification is key!

Gold as investment is true before 2012. Now i think its more like to protect money value thats it.

Protect money value in what way?

Say ringgit go down to the drain, the gold price still as is.
Say usd also go down to the drain, the gold price still as is.

It still have better value regardless what currency goes down.

Historically, sgd is a better hedge against myr depreciation.

Unless your income or investment is in USD, why need to hedge against USD?

Most who bought gold during the last bull run are believed to be underwater.

Because here we earn in myr thats why.
Even though i am not an avid gold buyer, I am lucky because manage to buy gold when 3.15myr = 1 usd last time.

Gold is a commodity, as it lack industrials uses, price is speculative.

If your intention is to hedge against myr, there are other better assets.

this. its 80% true I think.

20% not true since theres still so many things we can do with gold and how the value may increase by itself. Even online currency like BTC have higher value than gold at one point...and we are talking about something with no physical value. Gold will find it way, as long as theres less people making stupid scheme with them.

Buy, and keep. and when you walk around meeting friends, if any of them getting married soon, offer them to customised the jewellery instead because you have your own bulk of 999 purity gold. should make you money. not much, but its money.

owning a chunk of 999 gold doesnt mean you need to keep them till the end of time in that particular shape. you can always cut some and make good use of it.

Turbulence in the financial markets for one. That's why it's the antithesis of fiat.
Geopolitical crisis. Etc

Gold is a commodity, suffer as much price turbulence if not more.

Not always.

It is viewed as a safe currency in turbulent times. Ask the Germans, the Vietnamese, etc

gold still have its power...dun lose faith on gold...like when we have MYR crisis, the gold price was skyrocket...