Are we headed down to the $800s?

I am hoping for a good buy price and have noticed the gold price down today. If it gets down to the upper 800s are you going to buy?

 

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what? it never hit $1000 last week ... wow..

 

Jc

 

Hopefully, if it gets extremely low, we can hoard and when the market returns, we'll all be rich...

 

If you're gonna speculate, watch the foreign markets, not New York.

 

My buy price is $825.
That's when I go all in with the home equity line of credit.

 

Not likely...Wednesday's decline attributed to some strength in the dollar and profit taking.

A number of larger players in the market think we'll surpass $1000 before the end of June.

 

One asset class rarely makes anyone rich..multiple asset classes can...but it generally takes years and lots of patience and discipline.

 

Are we looking backwards and heading up...or forward and heading down?

 

no. instead we are going north and pass $1,000.00 soon.

 

kind of silly trying to guess every 3 seconds isnt it??

 

I disagree. Substantial wealth usually comes from putting most of your investment capital into a single asset or asset class and being lucky enough or skillful enough to make it work. This can be real estate or a family business or a single stock or whatever. Diversification = mediocrity.

Markets almost never move in a straight line for a long time. The movements in the gold price are not unusual.

 

look at platinum, palladium and silver. those metals keep going up. the gold will follow too.

 

Be very careful using another precious metal as an indicator for another. Commodities are not market indicators unless it is part of a group of like commodities. Take a look at historical prices for the platinum metals for 2008 (that would be platinum, palladium, and rhodium). Now compare the trend on these metals to the trend for gold for 2008.

That is where the danger is in using other commodities as market indicators. Each of the platinum metals fell, while gold remained stable. The reason for this includes industry use and needs, availability, government interference and regulation, etc. Use commodities from the same group or family as indicators, but not commodities outside that group.

Same goes between silver and gold. They are not indicators to each other. That should be evident by the continuing skewed value ratio.

 

It will hit the $800's again, during a correction, but the trend is still upward. If it does go to the $800's, I am probably buying more.

 

everybody is hoping to buy at $800.00 or plus. that's mean it won't go that way. may be $900.00.

 

No argument that markets generally do not move in a straight line. All the more reason for diversification since different asset classes do not perform identically in all markets. The whole is greater than the sum of its parts.

I disagree that most people should have "all of their eggs in one basket." Ask the many people who invested too heavily in real estate the last few years or had all of their assets with Bernie Madoff. My experience with investors that are trying to make a fortune quickly is that for the most part, they fail due to greed which blinds them to the common sense notion that building wealth is generally a long-term process.

I would never consider luck as a component of successful investing since there is no way to predict its presence or absence. It is capricious.

Skill is another story. If you're an entrepreneur with a solid business plan and have all of your net wealth invested in your business, it is more than possible to realize sizable wealth with your skillsets and "sweat equity".

Most people however are not in this category and do not have a sufficient understanding of markets to take an oversized position in one asset class and emerge with a happy ending.

 

There are a lot of considerations here though, like production and buying and selling done by governments,,, oh and those weird Asian markets.

 

I agree that diversification is a pretty good strategy for most people. I also indicated that it requires luck. I never said that most people should have all their eggs in one basket. I indicated that it was the primary way that substantial wealth was accumulated in most cases. Most people who manage to accumulate substantial wealth want to attribute it to skill and hard work, but luck is usually a major component of success, like it or not. Nassim Taleb's books cover this pretty well.