leoq

This just came out... It seems gold is on its way.

"The fall in the U.S. dollar seems to be pushing all the central banks to strengthen their portfolio with gold," said N.R. Bhanumurthy, professor at the National Institute of Public Finance and Policy in New Delhi. "Gold is a safe store of value compared to the U.S. dollar."*

The Wall Street Journal recently reported that the hedge fund manager who earned more than $9 billion by predicting the collapse of the housing market is now investing his clients' funds into gold. "What's the only asset that will hold value? It's got to be gold," the hedge fund manager stated. "Three or four years from now, people will ask why they didn't buy gold earlier…"

I have a 401k and am seriously considering buying some gold from the money I have on it.
Think it is worth it?

fretboard

The new gold price and all indicators are exciting for sure. About your 401k there's alot of ways to diversify and a little gold wouldn't hurt but it would be better if you could just collect gold free and clear of something you may have to live off of like your 401k.

Depending on your annual income, household income and spending habits addition of eveything you own. Planning and studying will help you to make the right decision on how to diversify and how much to diversify with.

Paddy54

I Second that Fretboard.....buy what you can 1/10oz 1/4 oz what ever and just sit on it......I'm a firm beliver in holding hard money and why tie it up in a 401 K my gold holdings did not take a the 40 % hit like on IRA's & 401K's. did!! dollar cost aveage buy small work up big .....

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coleguy

Everything I've read lately says not to buy gold right now, and for good reason. People always buy high thinking it's just going to go higher. There really is a cap on commodity inflation, and I believe gold to be nearing it. Gold's not going anywhere. Wait for it to drop then buy if you have to. As an investor (I'm assuming you're one to be asking this question here) ask yourself this: why should gold continue to rise in value? The economy is the generic answer, but as we know, the economy is in a slump, and slumps never last long. Will gold drop as the economy rebounds? Why don't major investors use gold as hedges? I'm not talking individual investors, but large firms. Birkshire Hathaway doesn't and they're about the only ones who have continued to make money during the recession. I know, because they just made me 12K today.

In short, do some hard research before you dump your money in an uncertain prospect. Otherwise it's not an investment, it's a gamble and a poor one at that.
Guy~

taurus876

I dont think it is a good idea to buy anything when it is at an all-time high.

Danr

SirCharlie

Awesome Danr!!
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I sum up everything that I take in with my eyes and ears, and my brain digests it and gives me my gut feeling. With almost everything else I would agree with you, but I feel gold is the exception to that rule.
My gut feeling tells me gold is going higher and higher. I think a year from now everyone will be saying dangit! Why didn't I buy more gold at $1250/oz? My best guess would be minimum of $1750 by next November. I'm holding every ounce of gold I own!
Just my opinion.
Chuck

fretboard

In answer to your question above, gold could continue to go up for various reasons. One being that this slump is bigger than any we've had since the early 30's. The unemployment rate is extremely high, there's constant unrest in the middle east, gold sales started in China, gold sales started in Russia. India just bought a few tons I guess, really didn't read the story yet. As the economy gets better, more ppl will get money and buy even more gold. Heck you could take your pick, all these things together will keep our economy in a slump longer, which may equal an even bigger increase in gold prices.

Sure it is a bit of a gamble nobody is gonna argue that ever but if you love coins and you love gold, well then gold coins are a must have especially in this economy.

boxerchip

I cant say if I agree or not.
Consider what he said, and also consider if you had said this when gold was at 1020 people would have said the SAME thing and assuming you listened to them you would be sitting here 60$ further from an oz of gold. Worth the risk... I cant say, could see 1300, could see 600... no one really knows where it will go, but the question you must answer is whether its worth it for you.

Morgan1878

I wasn't sure about gold 5 years ago when I started buying so I used a dollar cost averaging strategy which as many of you know is putting money into the market over a period of time to average out the highs and lows.

As the picture became clearer as to the direction of precious metals, I increased the percentage of my portfolio from 5-8% where it now stands. This percentage was determined by following the advice of money managers much smarter than myself who have very successful long-term records.

Although 8% in gold does not sound like a lot, it provided a very successful hedge (along with a short position) in 2008 and prevented serious damage to my portfolio. Gold has also accelerated the recovery of my portfolio to a point where all of the damage done in 2008 has been repaired.

The main lesson I have learned from the really good money managers is that as a rule, they initially learn as much as they can, they listen well, they aren't cocky and because they know there are things beyond their control regardless of their excellent analytics, they never bet the farm on any one sector no matter how attractive it may appear.

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GoldenFire

This is all very true, and brings back memories of the housing market. A few years back, there was a rush to buy houses and now those people that did during the height of the market are losing them…hence, the downfall of the economy and the rising price of gold.

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boxerchip

ohhh the poor housing market who woulda thought no one actually wants to pay 3 mil for a condo in vegas... someones gotta stop flippin em at some point and actually live there!

Cloudsweeper99

I like gold a lot and I plan to hold what I own. But the window of opportunity for buying gold cheaply is closing fast. I'm sure some of the gold buying is in response to the weak dollar, but a lot of it is also hedge funds and trend followers just jumping on what is moving. If you plan to hold for at least 5 more years and can stand volitility and short term losses as hedge funds move in and out, then it's probably okay to buy some now before the potential moon shot in the gold price. But it's getting very very late.