Good time to buy Gold?

weiss

Peter Schiff believes Gold could reach $5000 an ounce in a few years time which had me thinking it might be good investment.

https://www.youtube.com/watch?v=NHzfslWYYO4

What do most people think about it?

PCPhoto

Gold always goes up in price in times of recession - but promptly drops afterwards ..... so its not really a question of is it a good time (2years ago was a good time) ...now its only ok.....but when it does end - will you be fast enough to get out and make a profit ?

Personally I wouldnt - I can see it jumping up marginally over the next couple of months so for a short term (5-7yrs) I would say ...NO - will drop in a year or two or three...just a question of how low will it drop ?

Note: This is not investment advice just my personal opinion - and I have limited investment experience

MrMatisse

Gold will go up.

Indian consumers will buy more as they get richer for religious and ceremonial reasons.

Chinese Investors love it.

Obama is printing money to stave off the recession but this is destroying the dollar, people will want a currency that holds it value.

An ounce of gold would have bought a senator in ancient Rome a nice suit of clothes, it does the same today. It holds it value in the long term but you will never get stupendous returns on it over the long term.

lucky-colm

PCPhoto wrote: »

Note: This is not investment advice just my personal opinion - and I have limited investment experience

your not getting my house lol

silverharp

wait til 2010 , gold will be a great long term investment especially the gold stocks. You have to remember as smart as Schiff is he is too firmly wedded to the inflationary camp, I see no reason to believe that the US is on a Weimar lite course for now.

weiss

The WGC believes gold could reach $1100 by next year because of fears about the dollar being abandoned by oil producing nations.

WGC: Dollar concerns are boosting Gold Prices

"There have been rumors that some countries in the Middle East are looking at moving away from pricing oil in dollars."

weiss

There was also something said by Robert Fisk earlier this week, commentating on the demise of the dollar.

"In the most profound financial change in recent Middle East history, Gulf Arabs are planning -- along with China, Russia, Japan and France -- to end dollar dealings for oil."

They would instead switch "to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council (GCC), including Saudi Arabia, Abu Dhabi, Kuwait and Qatar," added Fisk.

Could this mean Schiff is correct with his prediction? well...could we atleast see a price bubble?

buck65

Surely we are seeing the price bubble now!?
Almost bought 20k worth 2 or 3yrs ago at $540 ounce!! Invested into property instead!!! That was the time to buy I reckon.

nuac

Most financial publications have carried articles in recent weeks extolling the advantages of buying gold.

Therefore might be a good time to sell it!

pearcider

Have to agree with the above sentiments. The time to buy was 2001-2002 when it was less than 300. I'm betting gold has more downside risk than upside just from the sheer bullishness of the gold market these days. It appears too populated an asset class - it's a near mania at this stage. There are risks to owning gold. For example it's illiquid and not linked to inflation. What if governments sell their reserves? The price could collapse. Shouldn't one be buying long duration index linked bonds if you're risk adverse?

silverharp

pearcider wrote: »

Have to agree with the above sentiments. The time to buy was 2001-2002 when it was less than 300. I'm betting gold has more downside risk than upside just from the sheer bullishness of the gold market these days. It appears too populated an asset class - it's a near mania at this stage. There are risks to owning gold. For example it's illiquid and not linked to inflation. What if governments sell their reserves? The price could collapse. Shouldn't one be buying long duration index linked bonds if you're risk adverse?

you need to know exactly what you are being risk adverse against, general inflation or deflation/credit risk, either way long dated bonds would be risky as you would have a significant price risk.
Long term I think gold will do just fine , its only a couple of hundred bucks above its 1980 price. Its a popular asset class for traders but dont think its really got the public behind it yet. If it gets whacked in the next few months I'd be a buyers of the stocks.

Daragh101

PCPhoto wrote: »

Gold always goes up in price in times of recession - but promptly drops afterwards ..... so its not really a question of is it a good time (2years ago was a good time) ...now its only ok.....but when it does end - will you be fast enough to get out and make a profit ?

Personally I wouldnt - I can see it jumping up marginally over the next couple of months so for a short term (5-7yrs) I would say ...NO - will drop in a year or two or three...just a question of how low will it drop ?

Note: This is not investment advice just my personal opinion - and I have limited investment experience

5-7 years isnt short term mate!:rolleyes:

Roonbox

Gold is only going up in the next 5 year - It may drop when the DOW has a second collapse - but with the amount of money that has been printed in the last year, the entext that central band are now buying bullion instead of the dollar, especially China, and the coming collapse of the dollar, gold could easilt reach $5000 -

how can you call something a bubble when it is not much above where it was 30 years ago -

You'll make more money with silver too -

cmpunk

also 2nd a bubble very soon