The Price of Gold, to Buy or not to Buy, that is the Question?

Discussion in 'Bullion Investing' started by fretboard, Jul 1, 2020.

  1. fretboard

    fretboard Defender of Old Coinage!

    Gold has consistently held it's price and is starting to really make a statement! It has stayed above $1750 for at least 10 days and is making many people realize that for whatever reason, Corona virus, quantitative easing or an unsteady economy, it looks like it's gonna stay up and most likely go higher!! So, would you buy at today's prices or not? If not, please state why not after all, this is only being posted as I'm a bit leery to put out any more money! I went to my LCS but they were closed, I don't really like buying online but I may! Comments anyone??
     
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  3. GH#75

    GH#75 Trying to get 8 hours of sleep in 4. . .

    It's all a gamble. It could go down to 1200 in 20 minutes. IMO, you should buy when it's low, not when it's high. It could already be at its peak, and will only go down from there. Or, it might go up another $1000 for all I know. But nobody knows for sure whether you should buy it or not.
     
  4. GH#75

    GH#75 Trying to get 8 hours of sleep in 4. . .

    Or, you could put in a little money into the gold stock, like $100 or so, and then you won't have as much of a risk.
     
    midas1 likes this.
  5. imrich

    imrich Supporter! Supporter

    Would I, yes I am, but buying classic certified Gold that the average collector wouldn't buy, while doing thriving business with buyers who love large purchases from me at appreciably less than eBay prices.

    Buyers locate eBay offerings of coins they desire, as double eagles, boxed 1 oz. Gold Eagles, Buffaloes, etc., find the lowest price for what they'd like, and I beat that price, through negotiations where often they can have the coins in their hands within 24 hours.

    They often state they need to discuss it with their "partner", when I suggest they propose a fair price that'd convince any opposition at "home". Reasonable! Sold! Generally less than 15 minutes on the phone.

    They often come from significant distances, where I try to meet them "half-way".

    My best advertising is young men (i.e. early thirties) telling their friends.

    A seemingly win-win situation, as there are many knowledgeable young collectors, who've already exhausted normal resources.

    I'd recommend that the decision should be made in the same vain as buying any other tangible commodity, such as a vehicle that may change in desirability upon evaluating usefulness, as my 1958 Corvette with a competition drive train when my wife announced pregnancy. LOL

    JMHO
     
    Last edited: Jul 1, 2020
  6. David Betts

    David Betts Elle Mae Clampett cruising with Dad

    I'm buying as much as possible and until recent up tick could get at $30-40 above smelt but that has changed recently
     
  7. David Betts

    David Betts Elle Mae Clampett cruising with Dad

    Keep the vet!
     
    imrich likes this.
  8. QuintupleSovereign

    QuintupleSovereign Well-Known Member

    My philosophy on gold: buy it in the hope that it doesn't go up significantly in value. If it does, chances are, things will be looking pretty dire at that point.
     
    Santinidollar and David Betts like this.
  9. fretboard

    fretboard Defender of Old Coinage!

    Yeah, I bought a bit a couple of weeks ago and I plan on getting a bit more sometime this week. I know a lot of people won't buy but I've studied gold heavily since 2011 as I made a little bit back then but I could have made a lot more if I had risked more. No risk, no reward! :D
     
    David Betts likes this.
  10. Herodotus

    Herodotus Well-Known Member

    There are other charts that express the emotions of the 'boom & bust' cycle in varying styles, but this one essentially gets the jist...

    [​IMG]

    Per investing in commodities...

    The key is to buy below the median line and sell above the median line.

    Where do you think the price of gold is at right now as it relates to the chart shown above.. Above or below that dotted line?

    The time to buy is after the majority have sold and are afraid to buy. The time to sell is after the majority have bought and are afraid to sell.

    If a person is looking to ride short-term waves, one ought to be sure that they know how to surf so that they don't drown. One also has to keep an eye out for sharks.

    Gold is a poor short-term investment, and ought to best be considered as a hedge -- A tool in a greater long-term investment strategy. Much in the same way that an oil company might sell(short) oil contract futures to hedge (as a loss-limiter) for when oil spot prices flounder. While gold is a traditional safe-haven, it is still beholden to the philosophy that markets act irrationally.

    One of the most foolish actions that any investor can employ is to ask for/or take advice from random people on the internets.
     
    medoraman likes this.
  11. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Gold is something you buy and hold on to long term, like a nest egg
    if you one of those people that want to buy and sell a month later gold
    is not for you ! price is very high right now so I would think twice if your
    looking to get rich quick.
     
  12. fretboard

    fretboard Defender of Old Coinage!

    No, I have plenty of years to wait and cash out at a later date, I don't have a problem holding at all. I'm not looking to get rich on this, a nice profit would be good enough for me. What's exciting about the pog today is what's happening with platinum and silver. Normally when gold goes up, silver follows but that's not happening. These are not normal times at all and there seems to be a combination of situations affecting the price of gold. It's terrible that the Corona virus is having an impact but the fed printing up dollars is also having an effect and maybe their impact is half and half. We may never know! :)
     
  13. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    You have to throw out everything you have learned, ant go by your gut !
     
    fretboard likes this.
  14. chungt

    chungt Member

    The issue is no one knows what is low or what is high. If someone did, no one would ask this question. $1750 could be the new low.
     
  15. Collecting Nut

    Collecting Nut Borderline Hoarder

    It's a fifty fifty shot.
     
  16. baseball21

    baseball21 Well-Known Member

    I wouldn't in terms of a pure bullion or investment play. There's far to many stocks right now which almost certainly will double your money or more in the next year or two where the investment should be going where the return will be significantly better.
     
  17. imrich

    imrich Supporter! Supporter

    If you had continuously invested over the years in a dollar-cost-average Classic Gold buying basis, it would have been a positive "sure thing". Remember, hind-sight is perfect, but for most fore-sight is difficult. I've spent my life passively guiding others, but less than a hand-full have listened and been relatively rewarded. I promise others that I'll purchase whatever has been been dissatisfactory under my guidance, no takers, but I've earned many rewards betting with professionals about the future. The seemingly failing factor in investing is the human factor, impatience, greed, degree of knowledge, natural intelligence application.

    I've generally invested in the broad gamut of businesses/investments to personally find, that when properly invested, the value increase with Gold can be equivalent or greater than the average of other touted investments.

    Regardless, relative to the average return on investments, my constant investment return has been satisfactorily positive. However, I'm a pragmatic contrarian who often reads posts here, by believed unpracticed individuals, as my source for Numismatic entertainment. LOL

    JMHO
     
    Last edited: Jul 4, 2020
  18. fretboard

    fretboard Defender of Old Coinage!

    Yep, there's some within this thread! :D
     
  19. yakpoo

    yakpoo Member

    Gold is close to breaking above $1800/oz...and will likely head higher in the near term. However, gold is a negative play against the denominated currency. Gold buyers aren't really buying gold...they're selling their currency.

    If inflation doesn't increase as much as expected, people holding gold could be in for a rude awakening. Expanding mine production, redemptions, and possible tax hikes will likely pull the rug out from under gold...at some point.

    Another factor impacting the trading price of gold is the COMEX margin requirement. Increased margin requirements shrink demand...(or vice versa).

    https://www.investopedia.com/articles/investing/100915/learn-how-trade-gold-4-steps.asp
     
    Last edited: Jul 6, 2020
  20. fretboard

    fretboard Defender of Old Coinage!

    Absolutely true and I've thought of that! There's a number of things that can happen, that's why anyone who is planning on making a profit off of their gold coins has to have a plan B. :D
     
  21. David Betts

    David Betts Elle Mae Clampett cruising with Dad

    Mini golds like LA purchase and Lewis and Clarks kicking azz lately bought a couple ms 62-ms64 for about $350-$380 look them up! love it 1903/1904 commens
     
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