Once in a while you come across an article which is purely logical especially because GOLD is bought and sold on emotions and not on reasons…
By Lynn Alden
I’m not a perma-bull on gold, and I invest in a variety of asset classes depending on where value is in the market.
For example, I sold my gold and silver coin collection at high levels in 2011 because there was so much enthusiasm in the space and started buying back in 2018 with a long-term bullish outlook when gold touched $1,200. After an initial large investment in 2018, I’ve been dollar-cost averaging into gold and golds stocks over the past year.
Although we may have pullbacks along the way, and gold may retest its previous resistance level in the high $1,300’s as support at some point, my base case is for gold to reach or at least test new all-time highs in dollar terms as the rest of this business cycle plays out into the early half of the 2020’s decade.
How I Value Gold
Gold is challenging to value because it doesn’t produce cash flows, so discounted cash flow analysis and other valuation methods are out the window. I treat it as a currency, but I cannot use most of the same metrics that I value other currencies with (such as foreign-exchange reserve levels, current account balances, purchasing power parity vs exchange rates, and so forth).
Therefore, I use a combination of two primary methods to value gold, along with a set of secondary metrics for confirmation.
read full article below
https://news.gold-eagle.com/article/gold-price-forecast-path-new-all-time-highs/1166