Next Level: GOLD $1,350.00

What do you guys think of this article?
One thing he doesn't mention though is the risk of the USD losing its reserve currency.

Buying gold may be riskier that it looks



http://www.msnbc.msn.com/id/34483403/ns/business-personal_finance/

 

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they love to talk about the 1980 boom...forgetting to mention that it was an artificial market because of the Hunt Brothers.

Yes, no one should park all of their assets in any one asset class -- especially gold. Yes, you might lose money in Gold if the economy goes well and there is no inflation...which if you are diversified should help your equities.

Yes, copper could be a better hedge -- as long as you don't want physical possession or own a large warehouse

If you define wealth as more buying power, then I doubt anyone is going to get rich on gold (unless they are like Yankee and time it right)...hold enough to protect the other assets that actually earn money...gold is that 'neutral' asset more or less although it all depends on the trend an getting in our out at the right time.

Know when you are getting in and when you are getting out....and do it!

 

Gold continues its descent! MetalBidAsk Gold$1,086.70 $1,087.70 ($8.40) Silver$16.84 $16.89 ($0.14) Platinum$1,404.10 $1,414.10 ($11.40) Palladium$356.00 $361.00 ($7.40) Updated:12/22/2009 7:10:40 AM CST $1000. here we come!

 

Well, let's not forget it's a light week due to holidays. It's not really sinking very quickly. But all the same don't drink too much nog and miss your mark if the chance comes.

 

APMEX rings my cell when the price is right!

 

Ditto, only I opted for the email alerts... All the same if you spike your nog, make sure they don't ring you while you're being too generous.

 

It's easy to come up with scenarios of doom for any investment, and it is a good practice because EVERY investment has something wrong with it. It is the function of an analyst to figure it out and determine whether or not the probability of gain exceeds the probability of loss. With the gold ETF, there are a few points to remember. (1) Not everyone can sell their shares unless someone else buys them. (2) The ETF is more of a price-taker than price-maker. (3) $39billion just isn't very much money in the institutional investment world. (4) Institutions are under-invested in metals, not over-invested. (5) It is just as likely that the short positions in GLD will have to be covered as it is that the longs will have to sell. (6) Some investors, such as Greenlight Capital, don't believe GLD has all of the gold they claim. In that situation, there might be a rush to sell GLD and purchase physical gold at some point, which is more likely to raise prices than lower them. Or, GLD may be forced to rush to purchase physical gold to back the claims against their shares. There are other points, but I think this makes the case that some sort of massive liquidation of the ETF isn't really much of a threat to gold prices.

 

The Hunt brothers were silver investors, not gold. Gold went up in 79 and early 80 because of inflation, fears that the dollar could collapse, and a huge participation by individuals and speculators jumping on the gold bandwagon. I remember that business news stories on the radio [CNBC didn't exist back then] typically led with the daily price increases in the leading gold stocks like Homestake. It was wild! We'll get there.

 

It's a fairly good article except that the author may be understating the risk of inflation. He's right. Gold is risky and nobody should buy it with any other understanding.

 

BUT you should buy gold when its cheep in price! LOL

 

But not necessarily if you don't have other debt paid off, cash on hand for immediate needs, some idea of what your plan in buying it is for and when to get out.

I think that article fools_gold posted didn't admonish strong enough how people in the 70s-80s jumped into PMs without much/any regard for their financial positions to begin with and not only got burned for a long time if they held the PMs but may have ruined themselves in their decisions by selling short term and loosing big. I think that danger is always present in PMs and wish more articles cautioned it with examples.

Still anyone can buy amounts according to their income and safety levels and doing so little by little at a steady pace is a good approach.

 

In our case we are debt free our home is paid off in full no credit debt of any kind. My wife's deceased husband was a stock broker and real good at investments!. He passed on 2 years before the "CRASH" my wife knew nothing about stock investment and as such she sold all her stocks after his death in hind sight (DARN SMART) anyway she put all the money in low interest Cd's. Although she doesn't make allot out of those Cd's at least she managed to hang on to all 5.5 MILL! not bad for a 50 year old woman!. Why she married a $7.00 a hour guy like me I will never know! LOL I guess its true what they say "LOVE IS BLIND" looking at me makes you think she should have asked someone what they thought about me BEFORE she committed! LOL

 

Wait for it! when the price is going down or bottomed you be the judge and buy,markets are a little swingy this morning,guess we'll see where they end up,the time is ripe for a pullback,so I'll get my buying finger ready just in case the bottom drops out.

 

Gold plunges on heavy selling, silver also drops
http://economictimes.indiatimes.com...ing-silver-also-drops/articleshow/5366759.cms

 

Thanks I've been waiting to read some kind of recent article about gold plunging....

 

Wow what an interesting story. Hey, I don't want to get too personal, but I've always wanted to know, where does one keep their millions?

Do you actually just store it at a regular bank? Knowing that the FDIC will only protect $250K of it?

What if you have $10 million? Do you open up 15 bank accounts and spread your money out to get the FDIC protection? That seems kind of crazy...

 

PMs drawing near the London/EU market close, currently:

GOLD $1,080.40/oz.
SILVER $16.91/oz.
Platinum $1,395/oz.
Palladium $361/oz.

 

You can look into something like this First State Depository Co.
They allow TPG graded collector coins as well.

 

But what about athletes and celebs who makes $50 million bucks.

Do you think they just have one big bank account? I don't see these types of people looking into gold and diversifying their money unless they have a CPA that controls where their money goes..

 

Celebs wear it... bling! bling! and their managers/legal teams do the rest of the hard work for them.