3rd straight annual loss for Au

"third-straight annual loss and its longest slump since 2000..."
Is it the right time to start nibbling?

http://seekingalpha.com/news/3008356-gold-loses-its-luster-for-third-straight-year?ifp=0

 

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Always nibble. Dollar cost averaging on way down is a sound approach. Happy New Year!

 

Currently it's $13.86. To me, anything under $15.00 is a bargain. The lower it goes, the more I buy. It lowers my overall costs and when it goes back up, which it will in time, it doesn't have to go up as much to break even.

 

I believe, with my 45 yrs. in studying metals markets, and my (crystal ball), that gold is priced several hundred dollars too high. It could reach Near $700 or less in the near future.

 

I would love to own some gold for under $15 bucks. How do you do it??

 

I will bow to your 45 yrs experience...thanks.

 

You were quoting silver...gold closed at 1060.49/ oz
http://silverprice.org/silver-price-per-ounce.html

 

I was actually quoting "collecting nut", who confused AU for silver

 

Yep, we were in a bull market based on fear for years - as always, the bear has returned. I'm looking forward to collecting gold coins again, once the price has returned to a stable price, sans the fear factor, which should be lower than $700.

 

Roger that

 

Even with gold at these current inflated levels, collecting high quality gold coins is and always be (according to my crystal ball) a wise and sound investment. As for silver, it demands a closer look by the investor. For many years, the silver to gold ratio was close to 50/1. It is now about 76/1. You do the math.

 

Was buying gold at 1800+ a good investment then?

 

I'm afraid to invest in metals. Why? Well, with a simple explanation, lets say I have a $20 bill and $20 worth of gold. Gasoline costs one dollar per gallon and they accept paper money or gold. To make it simple lets just say gold costs $20 an ounce, so I have one ounce. I can buy twenty gallons of fuel and pay with either the $20 bill or the ounce of gold. Next year gasoline prices are still the same, $1 per gallon, but the price of gold dropped by 50% to $10 an ounce. I can still get twenty gallons of fuel with my $20 bill, but now I need twice as much gold to get the twenty gallons. Sure, gold can also go up, but it just seems safer to save paper money....I guess?

 

I agree with your philosophy very much. U S dollars are a fine commodity both now and in the near future. If you examine a few simple retail items such as fuel, food, and durable goods, compare their prices with those of the past, while taking inflation into consideration, the economy starts to make a little sense. Rapidly rising and lowering bullion prices are not only impossible to predict, but difficult to hit the perfect time to buy and sell. Now who does well with bullion? You pay a premium to both buy and sell. The bullion dealer always makes money on your investment! You stand to make more money picking up alum. cans than in bullion. Beware of mood swings and spikes in the market as they are short term moves and as in mutual funds, the long term always and without exception is the healthy way to invest your hard earned money. I find that investing in high quality coins at a good price is not only a great investment for the future, but also an extremely fun-filled hobby.

 

I'm 70. I'll never live that long.

 

It is a fun filled hobby though.

 

Good thinking for gold as a commodity...but what about gold coins as a numismatic investment?

 

Gold is still way too high, WAAAAY too high. Silver is another story. I THINK it's still somewhat too high, but not ridiculously so. The gold to silver out-of-whack ratio does NOT argue for silver going up; it argues for gold coming DOWN.

 

You,ve hit the nail on the head with bullion. Now as for the rare gold coin market, one should not compare desirable rare gold coins with bullion coins or common gold business strikes. I am retired and have a limited investment budget, however, I recently found a nice choice a u $20 liberty type 1 for a nice price. I enjoyed it for a few months and sold it to a dealer for a nice profit! The price of gold had little or no influence on the absolute rarity of this coin. While gold has dropped in value, rare gold coins have only increased.

 

All commodities -- whether gold, silver or oil -- are in a state of flux now where sound investment decisions, IMO, are nothing more than a craps shoot.