Is it a good time to buy Gold

bennej

Any financial wizards out there able to tell me if it is a good time to buy Gold?

douglashyde

Gold reached it's a new high yesterday; so the question is: do you think it will get any higher?

It will get higher if confidence in the euro drops. It will fall if the ECB/IMF bail out is precevied to be enough.... so depending on what you think..... there is your answer.

pocketdooz

bennej wrote: »

Any financial wizards out there able to tell me if it is a good time to buy Gold?

Long term (3 - 5 years out), yes - I am buying Gold to hold for this period.

2 Reasons:

1) I am expecting high levels of inflation

2) I am expecting the long-term decline of the dollar

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Thargor

What kind of growth are you expecting Pocketdooz? Double digit?

pocketdooz

Thargor wrote: »

What kind of growth are you expecting Pocketdooz? Double digit?

Think about it on a relative basis rather than an absolute return. If you have USD investments or inflation sensitive investments, moving some of your money into gold makes sense.

It's all relative to what other assets do. Everything is relative in investing.

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douglashyde

pocketdooz wrote: »

Think about it on a relative basis rather than an absolute return. If you have USD investments or inflation sensitive investments, moving some of your money into gold makes sense.

It's all relative to what other assets do. Everything is relative in investing.

.

what if everything goes up?

Bullish

Pocketdooz,
Could I ask why you expect high levels of inflation from 3 - 5 yrs, I certainly hope you are correct, But i have no Idea that far out,
I would think a high level of inflation although rough would actually be healthy for ireland and other high dept countries in the Euro zone.
Also do you see Ireland still in the Euro during that period.

thanks
Bullish

pocketdooz

douglashyde wrote: »

what if everything goes up?

That would be great. But it's not going to happen.

pocketdooz

Bullish wrote: »

Pocketdooz,
Could I ask why you expect high levels of inflation from 3 - 5 yrs, I certainly hope you are correct, But i have no Idea that far out,
I would think a high level of inflation although rough would actually be healthy for ireland and other high dept countries in the Euro zone.
Also do you see Ireland still in the Euro during that period.

thanks
Bullish

I think we'll see higher levels of inflation as the only way the US and the Eurozone can delever in the medium term is to print money. Sovereign deficits and debt levels are too high - giving countries two options (i) default or (ii) print more money in order to pay off debt thus debasing their currencies and leading to inflation.

Yes, I still see Ireland in the Euro.

.

Bullish

To be honest that is what I am hoping for as the alternative to priming the printing presses is worse for Ireland IMO. You said inflation in the period 3-5 yrs, so in the 1-2 yr time frame deflation until the excesses are worked through ?

If my question is in line with your thinking wouldnt gold be a bad investment short term ?.

I am bearish on Gold but on a 3 month time and only as a trade not an investment.

buck65

Personally I would wait a few weeks, I bought last year fairly high at 1.180oz, the price was near it's all time high and I used the inflation reasoning. I sold last week for 1.21 it is now nearer 1.24oz . Gold dropped to 1.08 shortly after I purchased and hovered between that and 1.13 for a good few months until the latest crisis.
I expect it to drop again as things stabilise and that may be the time to get in when it is around the 1.12 mark.

pocketdooz

Bullish wrote: »

To be honest that is what I am hoping for as the alternative to priming the printing presses is worse for Ireland IMO. You said inflation in the period 3-5 yrs, so in the 1-2 yr time frame deflation until the excesses are worked through ?

If my question is in line with your thinking wouldnt gold be a bad investment short term ?.

I am bearish on Gold but on a 3 month time and only as a trade not an investment.

Hi Bullish, I think you may have misread my post a bit. What I said was Long Term (3 - 5 Years) - Yes, I am buying gold to hold for this period and possibly longer. I am no economist but I think the only logical result of all the money in the system and the yawning deficits and debt/GDP levels is inflation - but maybe one of the economists on here might offer their opinion?

I am talking about accumulating gold over the next few years ... Not trading it.

.

Économiste Monétaire

You might be interested in this :pac:

Bullish

Yes I miss read your statement Pocketdooz
didnt mean to mis quote you.

willietherock

Goldminer etf on the ISEQ is up 11% today.Reports of an Austrian and German mint holding gold and silver reserves near depletion levels due to recent panic buying. Are were entering mania stage?

Will smith

According to me there is no right time or bad time for buying gold. If you feel like investing in Gold just go ahead. Though there may be some fluctuations in gold price, i am sure, after a point of time definitely it will be higher than purchase price. You should worry about the time only when you are selling.
Expecting experts comment.

Thank you!

RizzoJR

Will smith wrote: »

According to me there is no right time or bad time for buying gold. If you feel like investing in Gold just go ahead. Though there may be some fluctuations in gold price, i am sure, after a point of time definitely it will be higher than purchase price. You should worry about the time only when you are selling.
Expecting experts comment.

Thank you!

sounds very like term "as safe as houses"
house prices ALWAYS go up in value, right??

pointless "investing" in gold

gold is over-hyped

its becoming a bubble, just like property, dot.com, etc etc

better potential returns buying / shorting stocks

RoadKillTs

Are people not a bit concerned about buying gold? I would be. I think its far too over valued.

When I see crap like this and people on AH considering buying it as an investment, I don't know it just doesn't sit will with me.

I guess time will tell.

WildBoots

A good time to buy gold was yesterday.

Buy it now while it's still reasonably priced.

And buy lots of it.

Bullish

I would buy a 4 bed Dormer in Roscommon now before i would buy Gold.

The Pontiac

RizzoJR wrote: »

sounds very like term "as safe as houses"
house prices ALWAYS go up in value, right??

pointless "investing" in gold

gold is over-hyped

its becoming a bubble, just like property, dot.com, etc etc

better potential returns buying / shorting stocks

I wouldn't have thought gold could become a "bubble" like property, dot.com etc. Of course nearly every investment has a risk factor, but gold is a commodity of limited supply, unlike, say, the practice of building too many houses.

Yes, there's a risk attached to investing in gold and its value is going to fluctuate, but I don't see the gold market 'crashing'. I'd be happy to buy gold today as a long-term investment.

Jesus Wept

<Ollie> wrote: »

but gold is a commodity of limited supply

And limited use.

The Pontiac

The-Rigger wrote: »

And limited use.

It's still a precious metal though and that's the real value of it - its beauty and scarcity.

Gold is still only around halfway to its all-time high price of the 80's. It's at a nominal all-time high now, but taking inflation into account, it's still way off the all-time high of the 80's price of $873 per ounce, which equates to around €2,200 in today's money.

Scarab80

I love Warren Buffet's quote on gold..

[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.

ixus

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