E Gold - Bulls Vs Bears; Price Vs Value

What does it mean to say that one is "bullish" on gold? Or "bearish"? Or, more simply, what is a bull or a bear?

"A bull is an investor who thinks the market, a specific security or an industry is poised to rise. Investors who adopt a bull approach purchase securities under the assumption that they can sell them later at a higher price. Bulls are optimistic investors who are attempting to profit from the upward movement of stocks, with certain strategies suited to that theory. ...James Chen, Investopedia

According to the definition, then, being bullish on gold is an indication that an investor can optimistically purchase gold and expect to sell it later at a higher price for a profit. 

"A bear is an investor who believes that a particular security, or the broader market is headed downward and may attempt to profit from a decline in stock prices. Bears are typically pessimistic about the state of a given market or underlying economy."...James Chen, Investopedia

As contrasted, then, with being bullish on gold, being bearish implies that an investor is pessimistic if he thinks that gold prices are headed lower, "and may attempt to profit from a decline" in prices.

From the same source quoted above:

"A bull investor believes that the market will increase in value over time. Bears are the opposite of bulls and they believe that the general direction of prices in a market trends towards a decline." 

So, which is it; price or value?

We place a value on things by setting a price for them. A new dress, a haircut, our homes, stocks, etc., all have a perceived value that is measured by the price affixed to it.

The price of a specific item or asset at any given time is a reflection of varied opinions. Some are based on fundamentals, some are based on technical factors. But the combination of all the opinions, and the resulting expectations (some expect the price to go up, others expect it to go down or remain the same), plus all of the other known factors at the time that might possibly impact the price, provide us with the clearest possible indication of current value for the item in question: its market price.

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Kelsey Williams is the author of two books: Inflation, What it is, What It Isn't, And Who's Responsible For It and  more

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Noah Pomerance 1 month ago Member's comment

Very Interesting! Would Crytpo-Currency be exchangeable for the US dollar in this article?

Kelsey Williams 1 month ago Author's comment

ALL currencies are substitutes for real money, i.e., gold.