What is the fair market value of gold in $/oz?

[DemonD]

So gold today is $625/oz. (BTW I know the gold charts are no longer on the front page of itulip, but I would like to thank the staff for turning me on to Kitco.)

I know predictions have been for 1000, 2000, 3000, and even $5000/oz for gold, but I'm wondering what the fair market value of gold is, and what rationale you would use to come up with a valuation for gold.

[bart]

Re: What is the fair market value of gold in $/oz?

Here's one I use - just offsetting the value of M1 (cash & checking accounts, roughly) and then matching it to the gold peak in 1980. Note that the chart below is out of date by over a year.

[Spartacus]

Re: What is the fair market value of gold in $/oz?

you're going to hate me for this

http://www.lbma.org.uk/clearing_table.htm

Note that 9 times as many dollars worth of gold changes hands as dollars worth of silver.

So Gold's monetary demand is 9 times Silver's monetary demand.

(S gets into a crouch)

IMHO Gold should be 9 times the price of silver.

So, before asking for Gold's price, one must ask, what should the price of Silver be?

(S sprints out of the crouch, ducks and runs and hides)

So gold today is $625/oz. (BTW I know the gold charts are no longer on the front page of itulip, but I would like to thank the staff for turning me on to Kitco.)

I know predictions have been for 1000, 2000, 3000, and even $5000/oz for gold, but I'm wondering what the fair market value of gold is, and what rationale you would use to come up with a valuation for gold.

NOTE the LBMA clearing statistics are daily outstanding-at-end-of-day amounts, summed up for the month.

Accounts that have traded millions of ounces in the day but have no outstanding balances are not counted.

So those are actually a fraction of the daily trading activity IOW that 130 million ounces of monetary Silver changing hands is a small fraction of what was actually traded ON ONE DAY.

For a sense of scale, 600 to 700 Million Oz of Silver are mined ANNUALLY - IOW, sometimes all the Silver mined in a year changes hands in 3 or 4 days on LBMA (which I'm using(probably invalidly) as a proxy for worldwide monetary demand for metals).

[spunky]

Re: What is the fair market value of gold in $/oz?

Hmmmm, dont know . I look at Gold as a long term protection and a real store of wealth. I dont trade, certs, or own mining stocks. To me Gold is now standing on its own , awash from crude and the USD. Silver is very different from Gold in several ways though as of late they have been mirroring each other in this narrow trading range. I just look for dips in the market to add small pieces to the inventory. Gold eagle has some nice articles also. Good luck on this you will get many answers. I dont think you will see the huge spike in PM's till we get a serious Geo political or financial meltdown then hold on baby. :cool: