Gold within a hair of new record high in $s (Metal of Kings)

While all the focus has been on silver over the last few months, Gold came within just a hair's reach of a new high today. $1556.49/oz. It has reached all time highs when denominated in in pounds or euros.

Silver? down. (and a long long ways from it's high)

Gold is for investors, silver for speculators.

 

Log in or Sign up to hide this ad.

I'm not a king so I can't afford much gold right now.

 

Are you saying now is a good time to buy gold - at nearly an all-time high?

Don't forget the old adage - Buy low. Sell high.

 

In other words, you believe you can time the market? When Gold hit $300/oz 10 years ago, people said the same thing.

 

Uh, I thought it was just the opposite: Silver is for investors and gold for speculators

 

Any investment that could result in the loss of all or part of the principal could be considered speculation, especially if the aim is a quick profit.

 

Uh, no, I don't believe I said that. My point was with gold at a near-record high it is closer to "high" than "low". And if you adhere to the old adage "Buy low. Sell high." now may be a better time to sell than to buy.

Hey, I could be wrong. Been wrong before and will be wrong again. But I would not be comfortable buying gold at these prices (although I did buy $800 worth of gold coins last week).

 

As opposed to the old adage, "buy when it's going up, sell when it's going down"?

 

Maybe we should just take Calvin Coolidges's advice (as told by Will Rogers):
"Take all your money and buy good stock, and wait for it to go up. Then, sell it. If it don't go up, don't buy it!"

 

Ayup.

"Buy low, sell high" implies that you know when an item is going to go up or down. You don't.

"Buy when rising, sell when falling" is great -- but all you can know is that an item has risen or has fallen. Buying when an item "has risen" = "buy high"; buying when an item "has fallen" = "sell low".

Buying below spot, on the other hand, is always a better strategy than buying at or above spot. Likewise, selling above spot is always better than selling at or below.

 

i think you can say that gold and silver are a safer store of value than the US dollar. that doesn't mean the price will go up or down in relation to goods and services. they will just hold their value relative to weakening currencies.

 

Based on the wild swings in silver and the relative consistency of gold I would agree with you, and I would choose gold over silver if not for all the fundamentals behind silver that gold does not share. Gold is a one trick pony, but I think silver will turn out to be a superstar because it is the only metal that is both a monetary and an industrial metal. It has been shown to diverge from copper and follow gold when faced with a crossroads, and is also more rare than gold above ground and arguably below ground as well (see epithermal deposition) even though most people will quote the historical 15:1 ratio as what remains underground - past results are no indication of future gains. ;]

I do think gold is a good buy, because it is still far off from it's inflation adjusted high even though it is near an all time high in dollars. The state of the economy (and confidence thereof) and monetary easing play a role in that opinion as well. I just think silver is a better buy if your strategy is to buy and hold, and ride out the waves.

 

If you think silver will be a "superstar because it has "industrial uses" you should check how much of a "use" it has. Believe me the amount of silver industries use is so small it will never have an impact on silver at least in our lifetimes and gold has industrial uses too. Gold has industrial uses to. **** its found in virtually every computer ever made.

 

Copper, nickel, platinum, even zinc are all both "monetary" and "industrial" metals. Gold can also be an industrial metal, but its high price usually precludes its use in applications where a cheaper metal (such as copper or silver) would suffice.

 

I agree with Hobo. The time to buy gold and silver was BEFORE they rose. While I do not know whether precious metals will continue to rise, I do know that getting on the bandwagon late in the game is usually not a great idea.

 

That my friend, is how APMEX, KITCO and your local B&M make a lot of money.

 

Copper is more so an industrial metal than a monetary hedge, because it is not a safe haven demand when confidence drops in fiat currency. Gold can be used in industry, but isn't because silver can do everything it does better and cheaper.

 

Gold is the least reactive of all the metal elements--silver corrodes and reacts with many chemicals, including sea water. Gold is far more malleable than silver is. Silver does have better electrical conductivity. Gold can be used in catalytic converters http://news.cnet.com/Gold-to-go-in-diesel-engines/2100-11389_3-6176100.html. Gold also has better ductility than silver.

 

Metals actually aren't as useful as advertised, you can't eat them during a Depression, esp. if the gov't confiscates them (again).

Farmland is probably better, but lacks portability !

 

Of course, if you can't pay your yearly taxes on your farmland, it can be confiscated as well.