Gold took a little dive this morning. Is it lamentable or an opportunity?

Down a bit over $30 today. Do you guys think this is an opportunity to buy on a rogue dip or is this just a correction of the past few weeks' increase in price?

 

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Depends on why you believe it went down, why you're thinking of buying, what you think is yet to come, etc.

Silver is down by $0.54. Sounds pale in comparison to gold's $30.54 dip, but it's larger percentage wise. Gold is down 2.33% while silver is down 2.58%.

Over the past 30 days, gold is up less than silver. Gold to silver ratio has gone from 67.04 to the current 62.58.

Where it goes from here is anyone's guess.

 

Good call on the gold:silver ratio, Blaubart. To think silver was under 19.00/oz just over a month ago...

 

Gold needs to get below $1,000 an oz again to be a viable short term investment in my opinion. As high as it is now if it nosedives there will be people jumping out of windows.
I am actually shocked it has stayed as high as it has.

I would only buy god now to put in a safety deposit box and not touch for 20 years.

 

I think you'll be seeing many more $30 down days as gold is going down in a big way. The world has a ton of problems with Israel pounding on Hamas and killing Palestinians hourly and Honduran children walking across our border to find a better way of life. The fat white cats who sit in congress or have connections in congress can blame it all on Obama. While all our problems are mounting up into a huge abscess the public thinks our economy is doing great. As long as so many ppl think our economy is doing great the POG will continue going downward. Looking for an opportunity to stock up on gold? Give it time, it's about to drop in a big way within the next 3 years. That's my story and I'm sticking to it.

 

You're going to buy God and put him/her/flying spaghetti monster into a safety deposit box for 20 years

 

I think your prediction is fairly accurate. Although I think we will see 1 more big boom in gold and silver before the pm market comes crashing down.

 

You really believe in the financial Doomsday theory? In 2012 were doomed then it was 2013 now 2014.

 

Well, believe what you will about the value of precious metals in the long-term, but the main reason for me to think about buying is the idea that the massive amount of wealth in stocks relative to the recovery of the real economy seems pretty inflated, and the Fed reported as much. If a correction comes, having some of your money in precious metals could be a really good thing. Of course, I'm no financial adviser, so what do I know?

The big thing for me is that not everyone understands that precious metals are not solely the province of people preparing for some kind of economic doomsday; they have a place in more mainstream investing, but not everyone takes advantage.

 

I've said it a million times, but it bears repeating - economic doomsday scenarios destroy PM value in the same way as paper currency. PM in the US is concentrated into too few hands, and when people are hungry, they take what they want. If you're a stacker and want to see your PM grow in value, cheer for inflation, not doomsday. It's a fool who thinks that his PM will save him while 99% of his neighbors starve in the streets.

 

I hope you're not referring to my above post because its intent was 100% in agreement with you on this point, though I don't know that I'd go so far as to tell preppers they're wrong. Different strokes for different folks is the way I see it and I think there's room for both types of PM holders.

 

I agree. Btw, you do not need to be a financial planner to have an informed opinion on macroeconomic events. I passed the CFP exam years ago, and it was probably the easiest certification test I ever passed. The CPA and CMA exams were 100 times harder. Just because someone has CFP on their business card is not a very high level of cerification.

 

I'm just trying to err on the side of modesty.

 

The idea that the dollar's loss of reserve currency status will cause the U.S. to "crumble" is pretty wild, in my opinion. The U.K. didn't cease to be a nation after the dollar took precedence in the world economy.

To say that the dollar may lose its reserve status is fine, but to predict the doom of the U.S. is more than a little alarmist.

 

...and to play the Devil's advocate, to assume the US will never fall is naïve at best. The US and our current form of government are quite old by historical standards. Since you mentioned the U.K., let's take them as an example. Many people assume England has been around forever, which is somewhat true, but it hasn't been without significant changes in governance. It's gone from a monarchy, to a parliamentary system, and on to become the Kingdom of Great Britain, which became the United Kingdom. The governance of the UK has been significantly changed at least twice since it's formation in 1707. (1801, 1922) It is also now a member of the EU, which also has an impact on governance.

Whether our inevitable "doom" is a somewhat smooth transition from one form of government to another, or a revolution, or an invasion by another country is anyone's guess. It may or may not include a financial collapse, barter, violence, famine, etc.

 

"Doom" and "smooth transition" are qualitatively different as I see it. The idea that the U.S. will "crumble" seems to imply a tumultuous end.

No nation lasts forever, I realize, but an imminent collapse of the U.S. seems extremely unlikely.

In any case, this thread isn't about debating the merits of such logic, but to discuss investment in gold. That said, did anyone else see the $15-20 spike in gold after the news of the Malaysian Airlines plane in Ukraine hit the news?

 

Gold and silver both jumped up when the news of the Ukraine crash hit the media. Israel just launched ground incursion into Gaza. Keep an eye on PMs.

 

Also, one of my co-workers has been saying to keep an eye on Platinum Group Metals because of ratcheting tensions with Russia. Interesting to see Platinum and Palladium doing well today right after the U.S. announces further sanctions.