I had an interesting question posed to me the other day - what is gold's fair value?
I did not have a good answer. On one hand, you could look at it in terms of scarcity - how much does it cost to get it out of the ground on average and how much demand is there. Using the scarcity method, it should increase as costs increase with inflation. On the other hand, you have it as an hedge against hyper inflation and devaluation of currency, which makes it have value, but how much? You could also look at the commercial value, of which there is some, but there are also many alternatives so its generally not the only option out there so if it is too expensive, alternatives will be sought.
So I thought I would come to the experts on here: what do you think? Or are there too many factors to even speculate?
Thanks for your input and for coming by today,