I was in a coin shop a few days ago and was asking about gold coins. The man who owned the stores basically told me I would be a fool to buy gold right now. He said that since it is at an all time high and it would have to come down at some point. Now since he could have made $ I am inclined to agree. I am just wondering what people here thought about the future of the gold market? Over the next year or so, and further… Until I talked to this guy I pretty much assumed gold would just keep going up.
Hello RexLuna... Well first..Gold is not at an alltime high..back in the 1980's (late 80's) gold was ~$850.00 /ounce ! We are still quite a few hundred dollars off that mark. Secondly, gold is a commodity and is traded daily as any other commodity! It will rise and fall based upon economic conditions. It (gold) is revered as an inflation hedge in most portfolios. If you were looking for a short term investment I would point you toward the Mutual Fund area or Gold ETF's. As far as gold coins go, well that my friend is a matter of personal taste, available $$$ to invest, tolerance for risk and a mountain of other variables! I have purchased gold as low as 320.00 an ounce and as high as current market value. When Gold "heats up" no matter what the cost, people will buy it because of financial trending and preservation of capital (other things as well) that my friend is when you watch the gold...pick your target....sell it all and sit on the $$$$ until it comes down again. Then reinvest in whatever you like to continue the gains! Lots of folks do that...some do it for the sheer joy of the collection. Find your path, pick your flavor and read read and read some more! Best O' Luck to Ya ! RickieB
In my personal opinion..Nope! I think we are just entering the PhaseII of a major Bull Market. If you go to www.kitco.com and read the economic reports, theory, and mining outputs you will indeed form your own opinion as well. The important thing is to ask your self what you think! I could be very very wrong, if so, I can deal with it. Research, Research and more Research will provide the answer for you.. Good Luck! RickieB
It's hard to predict - if you can, you should be a millionaire by now. You might be right that gold is probably a good time to cash in if you bought gold a few years back, but I am not going to necessary agree if you say it's a good time to buy. Remember back in the 1980, when the Soviets invaded Afganistan and held it's Olympics and the rest of the world boycotted, gold prices went to an extreme. It was coupled with fear of the cold war as well as the Soviets refusing to supply the rest of the world with her gold, and hence the insane prices. Right now, what is happening is that the Iraq war is causing people to hoard gold as well as casuing oil prices to soar. And when oil prices soar, what will hit first is transportation costs. And when that happens - where do you think gold is minted from? From your backyard and transported via public transportation? Very unlikely - mines consume way too much fuel. Another issue is the matter of gold reserves left in the mines - S. Africa last year announced that their mines might be running out and thus causing major panic. Fortunately, Australia right now is supplying the rest of the world. All you need is a major country to back off from the mining and that will cause a shock. Back in 1993 or so, when Russia first showed signs of economy troubles, world gold prices went a bit higher until 1997 when Russia finally reformed it's economic policies and stablized since then. But hey, if you are to check about gold prices history, such flucation existed thanks to President Reagan's policy as he realized this is the only way to finance the war against Vietnam. Now that the US is in a war with Iraq, claiming that the war has ZERO effect on gold prices is absoutely nonsense.
Gold never changes; what changes is the value of the world's FIAT CURRENCIES as compared from one time to another.Gold prices climb only because of changes in perception of stability in the world.Predicting the future price of Gold is a supply and demand issue; as with any commodity.Gold should not be more of your portfolio than you can afford to lose.I would say that Gold can be an effective Hedge against chaos in the world.But so can ammuntion and stored food!
