George Soros is selling his gold. Should you sell yours? After all, it is close to its all time high. This article makes the argument that despite its historic run-up, the yellow metal still has a ways to go. http://www.marketwatch.com/story/soros-is-selling-his-gold-should-you-too-2011-06-06?Link=obinsite All in all I found this article to be a great read, with lots of relevant points to today's PM market. Best quote of the article is this one: "Smart investors always sell too soon — it’s the only way to avoid the carnage when the bull market collapses."
I think the author is correct, that there will likely be a blow-off phase in gold prices and that will be the time to sell. We aren't there yet. There are two reasons to sell; (1) you think the price will go down, and (2) you've found a better use for the money. If you search way back in the deep dark library of posts in CoinTalk, you will find knowledgable folks posting about how they were selling their gold at $500 and their silver at $12 and taking the profit. Many of these posts are accompanied by the thought that "you can never go wrong taking a profit." Selling too soon will avoid losses, but it may also make investors miss the manic phase of long term bull markets which for most of us may be the best opportunites of a lifetime to make big money. Everyone has to make their own decisions about this and get out when they think is best.
Good thoughts. The one thing I tell everyone to always remember in investing, for everything you buy or sell there is someone on the other side of that trade. This is what makes markets, if everyone thought the same there would be no trades. Everyone is financially in a different position, in a different position needing the money or needing a hedge to other assets. Everyone has a slightly different perspective on markets. There is not, and cannot, be a generic answer to whether to sell or buy. The answer has to be personal. The one thing I would strongly warn you about is when "famous" investors let it publicly be known what they are doing, many times that is for a reason. Privately is the best place to make money if you are big enough to move markets unless you wish to change the market by your public actions. Warren Buffett doesn't let the market know what he is buying until he is done buying it. Something to think about. Chris
Soros may have sold his gold ETF's, but he immediately reinvested in gold mining companies. So I don't think he's short on gold. I am concerned about gold ETF's due to the possibility of mass produced 400 oz gold plated tungsten bars floating around, which would certainly knock down ETF prices of inventories that were found to contain them (and boost physical prices). Maybe Soros was thinking the same thing, or maybe it's because mining companies have not had the same boom that gold has had and are due.
I would take it a step farther and say that if a famous investor or company tells you what they are doing, there is a good chance it isn't even true. I recall a story by Louis Rukeyser who said that guests would frequently come on his "Wall Street Week" show and recommend buying a stock, and later he would find out that they were actually selling the stock at the same time as the recommendation.
when gold pass $2,300.00 an ounce. then i will start to think about selling it. other than that. no way jose.
Want to hear something sad? I got my coins from the SD box last week, and was going through the contents and found 4 American eagles I cannot for the life of me remember buying. So I guess I am a bigger holder of gold than I thought. Found a MS shield nickel and 1795 cent as well I had no clue I owned. I love looking through coin boxes you haven't looked at in ten years, its like buying it all over again!
I was trying to be nice and give some benefit of the doubt, but I am very sure you are right. I do like the fact so many newspapers publish whether a writer holds a position in a stock they are talking about, I just wish it was a law on disclosure that would cover all media and get them on record as to their personal and companies holdings. No one ever got rich giving away their investing secrets. Most investment ideas, if valid, are not for sale at any price, let alone free. The trick is to try not be a sheep and be led by these people. Research and think for yourself, get a little education, and have a thick skin and an even firmer stomach. My opinion anyway. Chris
Thanks for the link. Checked the site out and really like it. Put it on my favorites list. Thanks again.
Folks should read their May 31st Outlook newsletter. It documents the Comex contract defaults in December and March that have been mentioned elsewhere. Now I know that some people will say that settlement in cash is not a "default" but if the holder of a long silver contract expected delivery of physical silver to keep their production lines running or for portfolio diversification and received cash instead, to them it is the functional equivalent of a physical default regardless of how the regulators spin it.
I WISH I could THINK about MAYBE buying ANY gold. Im eleven , I currently do not own a penny,and the only metal I have is 11 oz. in silver.Most of my silver is In morgan dollars and Franks and Roosevelts anyway.
That's a pretty good start. And don't feel bad about not owning gold. Many analysts believe silver will go up a lot more.
You have a lot of time Trust, you are just starting. In the future if you want a little gold, Mexico made 2 peso coins that were 1/20th of an ounce, so those would be more affordable. You have 60 years of collecting, what is more important right now is not the coins you own but educating yourself about coins. That will stay with you forever. Chris
In the real world no one buys traded futures contracts for the purpose of securing raw materials with the expectations of taking delivery to keep their production lines running.
They absolutely do, although probably not as a primary source except for portfolio and inventory purposes. Physical silver changes hands all the time on the Comex with various quantities moving between the registered and available categories, and various quantities are delivered and removed via armored car. But when someone expects to obtain the physical and instead takes cash with some substantial premium over spot, then you have a constructive default on those contracts. That's the point. Edit: I'm going to reverse myself and say that my comment above should not be considered true since I can't back it up with any facts in the case of the production uses of silver, only investment use. So justafarmer's comment should be considered correct.
