Does the GOLD have a conspiracy theory?? "If you pay attention, the public is selling not buying". For short term investment, buying and selling are advisable. From the profit views, in 5 year later, you gain more profit which i agree most. However, think of the selling price after 5 years. The price of GOLD also will become more expensive than before. As a result, you have to spend money again to buy and do the same again and again. Unless you do something else....
I show in simple calculation and plus with story:
This is uncle SAM
Uncle SAM want to buy GOLD and plan to sell back in 2015. In his wallet, Uncle SAM have a cash for USD500. He discover from the gold spot price, the 10g OBAMA gold is cost around USD500 also. Without wasting time, Uncle SAM buy gold before the price are changing.
In 2010, selling price USD500 and buying price USD475
In 2015, selling price USD1000 and buying price USD970
*example of prediction price
Nett profit = USD970 - USD500 = USD470
If Uncle SAM want to buy GOLD again, the price during 2015 is USD1000. Therefore, Uncle SAM have to add USD30 (own capital) + USD970 (sale profit) to buy the new GOLD. SO where is the real profit when you repeat the same investment????
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