As the world is flooded with money due to QE / stimulus, every item price goes up in relative to the worth of the money. But as the gold standard is no longer used, do you think gold will still be consider a store of value ?

I see not much use for gold except for jewelry and other production use, as such with the scare of USD collapse gone the fair value for gold should be around 1100 ~ 1150 level based on production cost ?

Don't think this will happen, unless some major market movement happen. Such low value will not provide incentive for mining company to mine and produce gold. Leading to demand > supply and prices goes back up.

I like basic need commodities eg corn wheat soy sugar. Human appetite and population growth will ensure steady demand.

But nothing is 100% even those prices are tumbling as new technology allow food to be produce cheaper and faster than before

Swiss voted strongly against the referendum. Wonder will gold fall back to pre 2008 ? 900 ?

To bet on gold, on my end the most important statistic i would look for would be:

1) How many still believe in it as a store of value (laymen)
2) Is the amount of believer in an upward rising trend or downward trend

I'm too lazy to search for it, but my general understanding is older generation tend to favour gold, predicting that the QE will further make gold appreciate in value, while the newer generation with their fancy education will come to conclusion that gold is not a good store of value. iPhone does it better.

But bulk of money still with the boomers, so short/mid term Gold will go up, while long term it may be drop by many as a store of value. Pardon for the noob analysis, but somehow simple facts make more sense to me than complicated theories.

Also to note, while the Russian economy is facing an evident collapsed in currency, i did not notice a huge spiked in gold, rather people are clearing furniture, staples good, iPads etc. So the only thing that can test the gold peak again would be a global crisis with USD facing extinction scenario ?

I don't think we will become Zimbabwe, so instead of buying gold which is based on USD, why not look into gold producer which trade on relatively weak currency to us as well as a way to preserve your capital and bet on gold

what would happen once most country undergoing QE eventually wind down and raise interest rate like US ? eg Euro / Japan.

the main scare during the gold boom will be that USD lose its dominance and value due to overprinting and hence many keep gold to perserve their capital.

Actually long has the gold standard been abandoned since USD becomes the main trading / transaction medium.

However it receive a second breath when after Lehman there is talk about USD collapsing / being drop as a standard. Too bad in the end the dollar won and gold has been sidelined again.

Gold is an asset / investment vehicle. So like everything it will appreciate in prices as general inflation goes up. It is much like the S&P index but does not pay dividend. Like the purchase of undeveloped land etc.

However we can say that it will no longer have that surge like it did years ago, as recent greece crisis and china stock collasped had shown that people no longer view gold as a short term hedge and they more likely revert back to USD / YEN to park their liquidity.

This does not mean the price of gold will go negative in a 10 year period, just that it will trudge along slowly within the 1100 - 1500 range like during the 1980s - 2000 till the next demand drive, whatever trigger that maybe.

For myself i will still park some money in gold just to catch the next run . However im still hoping for it go further down until a fair value.

Based on cost of production, i would say 900 range is break even value and the best bargain, while 1200 is the maximum fair value in the 15-16 horizon. Unless another bull and herd drive it from no where. One can never really timed the market .

Good time for a round gold fever ?

Tension between two major economy and hostile message bouncing across is always a good ingredient for volatility.

Bought into gold when trump was sworn in. No regrets

Bought paper gold during trump election win 2016. Sold it off yesterday for extra liquidity. Got around 40% gain.

Not bad also, quite a good run for a stable asset.