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Originally Posted by LIKEABOSS
What's your outlook on bullion in the mid-term (3-5 years)?
I'm predicting that gold will double and silver will triple. 
I think the endgame of the current Euro financial crisis will be another Lehman Brothers moment in either Europe or America and we will see another financial crisis similar to what happened in 2008. But this time it's going to be a whole lot bigger because since then the banks have only gotten bigger (thus adding more systemic risk) and the central banks of the world are saddled with unprecedented debt from previous bailouts and stimulus packages. I think when this crisis comes, investors will rush to precious metals because the US dollar and US treasury notes will no longer be seen as safe. This is when the price of gold and silver will skyrocket. Your thoughts? |
I think gold and silver are solid long term investments, they will continually appreciate in value indefinitely as demand increases and resources become more difficult to access. In the 3-5 year term however, 200-300% gains are very optimistic, imo. The market for gold and silver spiked during the initial stages of the recession with nervous investors running towards a safe asset and seeing as no market has entirely recovered, and arguably the recession hasn't even ended, a lot of the money that will be put into gold is already there. Not that more money won't flow in as the market becomes more unstable, but I don't think it will more significant than 100% for gold and maybe 150% for silver. I have a fair bit tied up in silver, so hopefully you're right and I'm wrong.
I keep my silver in a safety deposit box, btw.