However, that is not to say it will go up soon. It was below par value since the 80âs and did not go over it until around 2011; it took twenty years for gold to hit par value and go over. It may very well do the same thing again, it is difficult to tell. However, it will hit its par value and go over at some point again and if one has the money and time to wait then Gold is a good investment and a great insurance policy for a financial portfolio.
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Former Member
What's the relevance of "par" in the market?
I too was going to ask for an explanation as to what is "par value", cited so often in the lead post.
Former Member
Gold keeps its value during inflation. It has never gone to zero. But I don't buy it unless it is cheap. That is around $400 to $500 dollars an ounce.
Former Member
The main commercial impetus for gold is the nation of India. Beyond that, the other major impetus is a hedge (frequently used by central banks) against devaluation because as Wally said, it never goes to zero.
Furthermore, as Wally inferred, wealthy investors (like Wally) and portfolio managers dip in when they believe it's oversold and presents a capital gain opportunity.
The biggest buyer of gold in past few years were the China Central bank and Indians who buy mostly tax free from Dubai. The Chinese are now moving away from gold and US T-bonds into hard assets in Africa and Australia. The Indian middle class are now investing in their own businesses and bourse.
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