Is now a good time to buy Gold?

[Janine100]

The good thing about buying gold (bullions or coins) is that if the value drops you just hold on to it until the value goes back up.

[greenskeeper]

The good thing about buying gold (bullions or coins) is that if the value drops you just hold on to it until the value goes back up.

That could be said about every investment but the problem is sometimes it never recovers when the time comes for you to "cash out"

[Petunia 100]

On 9/13/13 at 2:00 am PST the spot price of gold is now $1309 an ounce. Is now a good time to buy gold? Or should one wait for it to drop further? It could also go back up. I'm keeping a close eye on gold. Investing in precious metals can be very risky. If I do make a move it'll on the EFT's (gld, iau, slv, pplt, etc.). I lost a lot of money recently on the precious metals ETF's so I'm hesitant to make any knee jerk reactions.

I don't know, is it? Your guess is as good as anyone else's.

[QuarterMillionMan]

I bought a 1 ounce Pamp Suise gold bullion bar today.

[QuarterMillionMan]

These pieces were bought a few years ago when gold was $1500, $1600, and even $1800 an ounce. I'm following Dojo's advice to hold it. Also dollar cost averaging.


2.5 gram, 5 gram, and 10 gram pieces



1 gram & 2 gram pieces



2.5 gram pieces

[BuckyBadger]

Congratulations?

[HereForTheCheese]

Being that Gold isn't the type of asset that can go "bankrupt" so to speak, I think it's safe to say it will eventually reach where it was before. While the interest in gold isn't new, it's definitely a bit gimmicky if you look at how it fared in the past. Not until 2000 was it so widely speculated upon.

[JoeP]

A co-worker produced a gold coin from the 1920s and said that the value of the gold during that time was enough to buy a steak dinner for two.

The value of the gold in that coin in today's market? Enough to buy a steak dinner for two.

His claim is that the value of gold trends with inflation. Not sure how applicable that claim is looking at the past 6 or so years, but it seems to hold water looking at the longer term.

[greenskeeper]

correct. gold (and silver) preserve wealth.

Meanwhile, the dollar has lost 97% of it's buying power since the creation of the federal reserve in 1913.

[MatthewC]

In that case you have no place investing in gold, other precious metals, or anything else that is typically so unstable. When you invest, you need to know, understand, and follow your own personal level of comfort. If watching your assets drop in value causes you to panic, make knee-jerk reactions, and generally uncomfortable, you need to change what you're investing in.

A different strategy is to simply change the frequency with which you personally monitor your investments. You should find someone you trust who also has investments and then have each other monitor the other person's investments and here is why :

Page 37 of "What Works on Wall Street" (Fourth Edition) shows a chart correlating emotional pain to the % chance that investors made money while investing in the S&P 500 from 1980 to 2009. It shows conclusively that those that looking at their investments in the S&P 500 less frequently created a much higher potential for positive returns being generated.

However, monitoring someone else's investments will be far less stressful. If you can trust each other to monitor the other person's investments and have some good ground rules for when to make notifications to the other person, this can create a much better environment than checking your own investments daily.

[danielhermann]

Is now a good time to buy Gold? Is now a good time to buy Gold?

Looking at the present market scenario and the type of fluctuation in the market observed it is better to invest in gold rather than investing in other investment options like shares,stock etc. Investment in gold always yields success.

[KTP]

Looking at the present market scenario and the type of fluctuation in the market observed it is better to invest in gold rather than investing in other investment options like shares,stock etc. Investment in gold always yields success.

Rubbish

[QuarterMillionMan]

I bought GLD at $124 on 10/1/13 when Comex Gold was $1292 an ounce. I'm holding long this position this time and not getting out should it backslide. On 10/2/13 I made about $500 dollars including some of my other positions as you can see.

[gorgopietro]

Technically, gold should be a necessary asset in a diversified portfolio.

Diversified basically means that when one asset class zigs the other zags. Well for the past 10 years gold has had about a 0.46 correlation to the S&P 500 and a 0.68 correlation to Vanguard's World ETF (VT) since 2008. A total U.S. bond portfolio (AGG) had a 0.59 correlation to the S&P over 10 years and a 0.83 to the world ETF since 2008. So, at least to me, it seems as if holding a little gold in a portfolio could do you some justice.

I'm not advocating putting a lot of your portfolio in gold or other precious metals but they do help in diversification.

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I agree with kv 968...according my opinion gold can rappresent an anti cyclical financial instrument in order to reduce the portfolio's risk...

that said, today can be a good moment to invest in etf gold in order to gain from the fall of the last two years.

[J.Apple902]

A co-worker produced a gold coin from the 1920s and said that the value of the gold during that time was enough to buy a steak dinner for two.

The value of the gold in that coin in today's market? Enough to buy a steak dinner for two.

His claim is that the value of gold trends with inflation. Not sure how applicable that claim is looking at the past 6 or so years, but it seems to hold water looking at the longer term.

I have heard very similar comparisons via "X amount of gold can buy you a nice suit", and how the volume of gold for you what you get (value), hardly changes over time. Good point some have made though, that the dollar's power has lost over 90% in the last 100 years - gold has not.