Buy Gold for Long Term as “Fiat Money Is Doomed”

– Buy gold for long term as fiat money is doomed warns Frisby
– Gold’s “winning streak” will continue in long term
– September is traditionally a good month for gold, as we head into the Indian wedding season
– “It’s just a matter of time before gold comes good again…”

by Dominic Frisby, Money Week

Today folks, by popular demand, we’re talking gold.
It’s had a nice summer run.
What now?

Gold price chart

Gold has been buoyed by the North Korea scare

Let’s start with an update. Back in July I suggested a flip trade: buy then in anticipation of a rally, sell in the autumn. But I also ventured that a proper, multi-year bull market in gold, such as the one we saw in the 2000s, was a way off.

The price then was $1,230 an ounce. As I write, we’re a couple of dollars shy of $1,340. We’ve had a $110 rally. Aren’t I a genius?

So what do we do now? Buy more? Sell? Hold?

Let’s have a lively debate.

The first observation I’d make is that a good $30 to $40 of today’s price is war premium. A certain North Korean has been firing missiles and exploding bombs. The world has, quite understandably, got nervous. And a certain American has been positing (with some justification) various potential responses on Twitter.