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Is Gold Still A Good Investment

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According to Alex Jones, and the bloke on his show who sells gold, the answer is a resounding 'yes'.

Personally, I have no idea, but you can't eat gold, which would be a shame in Jones' worst case scenario.

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:ph34r:

You post that, I check the price and it is nearly 1% down today. Deliberate?

I am not a professional, just some guy on the internet but I would say it looks overbought at the mo.

Edited by FaFa!

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You post that, I check the price and it is nearly 1% down today. Deliberate?

I am not a professional, just some guy on the internet but I would say it looks overbought at the mo.

No, not delibarate. I'm just getting downright scared (too much time on HPC, too much talk of inflation) and genuinally considering moving deposit fund out of cash this week.

Opinions appreciated despite my silly OP.

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:ph34r:

Two things that worry me:

1) Almost without exception, financial press, investors, people on the street etc ALL think it is a good thing to buy at the moment. I remember a colleague telling me he was 'just getting into tech stocks' in around 1999. This guy had never previously been interested in share dealing. We all know what hapened next.

2) Gold has no intrinsic value. You can't live in it, use it to power your car or heat your home, eat or drink it. The 'value' of gold is perhaps even further detached from its worth than are houses at the moment.

Yet it might still keep going up in price from here. You must, of course make your own conclusions.

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No, not delibarate. I'm just getting downright scared (too much time on HPC, too much talk of inflation) and genuinally considering moving deposit fund out of cash this week.

Opinions appreciated despite my silly OP.

Are you seeing inflation? Or just reading about it? Do you feel squeezed? How are your grocery/utilities bills?

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No, not delibarate. I'm just getting downright scared (too much time on HPC, too much talk of inflation) and genuinally considering moving deposit fund out of cash this week.

Opinions appreciated despite my silly OP.

In an uncertain world, diversification has a lot of merit. Mix your investments up a bit. I wouldn't put all your money on the Gold Horse, any more than I would put it all on the UK Sterling Horse.

But do question yourself if you are investing out of fear rather than rational logic.

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According to Alex Jones, and the bloke on his show who sells gold, the answer is a resounding 'yes'.

Personally, I have no idea, but you can't eat gold, which would be a shame in Jones' worst case scenario.

There's a question I keep asking to myself:

If gold is such a good investment according to people who sell it, why don't they just keep it for themselves?

Why are they so interested in trading it for your cash?

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No, not delibarate. I'm just getting downright scared (too much time on HPC, too much talk of inflation) and genuinally considering moving deposit fund out of cash this week.

Opinions appreciated despite my silly OP.

I thought it was overbought at £500, £600, £700.... but I eventually listened to some of the posters on here and bought at £600/£650/£700. Glad I did. It helps me sleep better at night.

90% of my STR fund is still in sterling (I know, i know but it's only to buy a house and so isn't being eroded away by inflation.... yet).

Stick 10% into PHYSICAL gold and take possession in your hand is my advice. My reasoning? (I'm no expert)

i) None of the currency debasement that has helped gold rise looks likely to stop any time soon.

ii) Central banks are buying - and no longer selling - gold.

iii) 10% is a small and not too dangerous diversification particularly if you mentally set a mental stop loss at which you'll sell and stick to it.

iv) Gold could well be a bubble but if it is, it could well go much further from here. Why not ride it for a while?

v) Even if you buy in at a high price, the bull market that gold appears to be in should save you. If today's correction is a big one, buy on the dip.

vi) Realist Bear still thinks gold will crash soon :P (Sorry RB, no offence intended!)

This guy's blog might be helpful while you DYOR: Money Changer

PS I bought all my physical from Bairds, who I can recommend. Maybe not the cheapest but a tip top service.

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Two things that worry me:

1) Almost without exception, financial press, investors, people on the street etc ALL think it is a good thing to buy at the moment. I remember a colleague telling me he was 'just getting into tech stocks' in around 1999. This guy had never previously been interested in share dealing. We all know what hapened next.

2) Gold has no intrinsic value. You can't live in it, use it to power your car or heat your home, eat or drink it. The 'value' of gold is perhaps even further detached from its worth than are houses at the moment.

Yet it might still keep going up in price from here. You must, of course make your own conclusions.

This is very much in line with my own viewpoint on gold. Also, as a store of wealth, what can you actually exchange it for? In a hyperinflation doomsday scenario, you can only negotiate and trade services and products (food) with likeminded people that also hold gold in high regard.

Also, what are people selling gold in return for this moment.......... a fiat currency of course.

It's just another bubble IMHO of course.

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:ph34r:

Holding any asset in any class is has a risk to it IMHO. That's why the other posters who suggested diversification are I think spot on. Diversify, and think of every single asset you hold as an insurance policy/hedge. I'm no Gold bug - in fact I sold up my Randgold shares at £25 per share (they are now £63), but I've stopped being a speculator and started being defensive. It's the safest way.

Therefore I hold gold, platinum, silver, sterling, dollars, euros, oil, cotton, sugar, copper...you get the picture - it's ridiculous but what can you do? Before anyone asks, yep, quite a bit in ETF form. I'm well aware of the risk of that!

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Wow, that's a huge move upwards. There's going to be some roasted shorts in the banking world if that is today's price, what with option expiry coming up and all that.

Its a number plucked out of the air as a guess where the top is before a 1980's-style sell off from which gold has never recovered (top in 1980 was c. $2,378.47 IA).

Well worth piling in today at $1288 to catch that last bit of profit before the others decide its time to take their profits too. The key is moving before the herd do. But then again today may be the best it will do for the next 30 years?? Trying to guess gold is slightly easier than trying to predict FOREX movements.

My decsion making process is focused on bonds--whether to sell or hold. My PIMCO bonds funds have had a run up of almost 14% YTD and that is too much IMO.

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According to Alex Jones, and the bloke on his show who sells gold, the answer is a resounding 'yes'.

Personally, I have no idea, but you can't eat gold, which would be a shame in Jones' worst case scenario.

You can't print it, either.

Yes, it's a bubble but I feel it has a way to go yet as people look for safe havens away from cash & stocks (due a correction imho).

SIlver also worth a look - it has more industrial uses and has been steadily creeping up alongside gold.

Might be worth looking at mining stocks or ETFs if you want exposure; all this and more on the Gold thread, which is where this will probably be moved to any minute now...

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Everything has a value. dry.gif

Gold is seen as a store of wealth, whether that's your view or not.

Why do you think it's been rocketing over the past five years then, you don't think it's anything to do with the way the governments have been printing and are starting, to print then ? dry.gif

Your anecdotal is touching but if there is a sell off in the equity markets, Gold will get hit with everything else, but to dismiss 'Gold' as having no value is a bit like dismissing the pound in your pocket or your dollar if you are American. Hang on a minute? ph34r.gif

I agree, but it is useless unless it can be used as a means of exchange for goods and services as well is it not? And, since the last time I went into Curry's they were only accepting GBP, and not gold coins, in exchange for a new fridge-freezer what use is it other than converting fiat currency into gold with the hope that when you convert it back you get the same worth back as before. And with gold at the price it is at the moment, I'm not so sure. It's all speculative and a gamble at the end of the day, what every you decide to store your wealth in.

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You can't print it, either.

Yes, it's a bubble but I feel it has a way to go yet as people look for safe havens away from cash & stocks (due a correction imho).

I think the man in the street is still unlikely to invest in gold, but with property on the way to tanking, and cash paying no return, I see stocks doing OK for a while yet.

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But if we go back to currency backed by Gold.................

Do you know, what, I almost pondered that scenario in my last post! I kid you not! The reason was because I was looking at the various graphs of gold over the past 100 or so years and noticed that its price didn't get so crazily up and down until 1975 with the demonetization of gold.

GoldPriceHistoryChart.JPG

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Its a number plucked out of the air as a guess where the top is before a 1980's-style sell off from which gold has never recovered (top in 1980 was c. $2,378.47 IA).

Thanks for clearing that up. I wondered what that figure was.

Well worth piling in today at $1288 to catch that last bit of profit before the others decide its time to take their profits too.

Take their profits where? Into the dollar with QEII on the horizon? QEII will be a like a sister ship to the Titanic for the dollar. Gold is acting as safe haven and the price increases we are seeing are more to do with fear, not greed.

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