"So why do long term holders of gold talk the price up?"
timber, i am not sure if you are attempting to paint all long term holders with the same brush. no offence but that would be like comparing you with skol.
like prospector i have never talked the price of gold up. i simply believe that as an asset class it has many compelling reasons to hold in the current economic environment.
to me the most ridiculous conversations seem to centre around:
a) talking about price of gold going to the moon b) saying gold is going to crash tomorrow
imo, these both represent unlikely highly unlikely scenarios and i just don't see either of them happening.
on point a, i just can't picture $20,000 gold, $50,000 gold or whatever some of these crazy numbers are.
point b to me is unlikely to happen in the near future. there will be corrections and consolidations (like now) that will happen along the way, but i don't believe the global financial catastrophe is over, or that it has even started in earnest.
i am yet to see any firm or long-standing evidence that the economy is "healing" or even heading in the right direction. the notion to me that some people think that many years of profligate spending and lax lending standards resulting in debt up on debt upon debt will somehow magically disappear or be ground away in a matter of 4-5 years astounds me.
economic recovery will be a very long haul and gold will represent sound money throughout this. it doesn't mean that gold wont correct more, as low interest rates have put a lot of air into the market and commodities. when this corrects everything will come down, but i believe gold will come down less relatively speaking.
