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

The answer to that is up to the investor in question. I would not presume to guess the motivations of others except to say the need to consume a loaf of bread is different than the desire to invest.

 

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Gold was within a few dollars of hitting $1600/oz today.

 

how much did you buy?

 

I never discuss my personal gold buying plans. I recommend the same to everyone. In fact you shouldn't even admit that you have any.

 

better delete your profile then.

 

Sound advice. The only reason I deviate from this is because I'm not concerned about someone who owns this board tracking down my IP address, getting a subpoena from my ISP, and finding out where I live. Plus I like to put my money where my mouth is. I never put personally identifiable information online, not even social networking. Now if you mean discussing it in person, I completely agree. Loose lips sink ships.

 

Sir I keep my side of the street clean and leave the rest to others. I also recommend this to you along with not telling people you buy gold.

Exactly what does this have to do with the price of gold?

 

it's high now, I'm just interested if anyone sees this as a time to buy. I didn't plan on trying to find out their address

 

If I didn't have any, I'd be buying. Even if I had a lot I'd still be buying if I had cash to burn, although I'd prefer a dip first, but if you see things from my lense you see that gold at any price is better than worthless paper.

 

see, that's all I was looking for, a conversation.

 

Well actually you were trying to be a bit of an ass about it. If this wasn't your intention, then my apoligies. Next time just try asking what you want to know instead of telling people to delete their profile and accusing them of being smug. Now that I think about it, I don't have anything to apoligise for, so NVM.

Anyway, I've done with this particular conversation. It has nothing to do with the topic nor the price of gold.

 

Gold is for investors. Silver for speculators. Back on track.. I believe both can be investment, both can be speculative.. depending on how much one commits to either aspect (both time and $)

And yes, loose lips sink ships. My husband was fond of saying that often, a polite reminder..

Lucy

 

I collect silver. I thought I was investing

 

But both of you are really speculating.

Me too, so don't get mad. Buying a commodity on the notion it will go up is speculation. Putting money into a business enterprise with the goal of it growing and becoming more profitable is investing.

I know, its semantics, and speculation has a bad connotation, but its the true meaning of the words.

I view both buying gold or silve of equal worth for trying to preserve long term wealth, with the silver buyer accepting more volatility. Its great when its up, but the volatility cuts both ways. I own both, but own more in silver than gold, (I just have always loved silver and not cared for golds appearance).

 

Silver just takes up so much space compared to gold... both are (can be) hard to move around.

Semantics.. that seems to be the discussion going on here. Whether one is 'investing' or 'speculating', there are no guarantees as to the performance. One can hope they 'got in' early enough (at a low enough $) that at least for the moment they believe they have 'made a good decision' (regardless of whether they have chosen to buy or sell..)

I personally am only in the mode of watching right now, for I believe these ups and downs will continue for a time. At some point the trend in force will change, but for the time being (IMHO) we're still in an upward mode. The dollar on the other hand, well, different story! For some things, it would be nice to have a crystal ball..

Just my opinion,

Lucy

 

You got that right! Heck, it don't take but a quick minute for the common criminal to put an address with a name. There's simply no reason to show anyone your hand ever, I'm just sayin' :thumb:

 

a few thousand oz bars don't take up much space

 

Lucy, just my opinion as well but I think absent any other forces, gold will continue to go up as well. Remember always that inflation is almost always built into our economy, so slow, steady increase should always be seen as the "normal" state. I say that if a market is flat for a period it is in reality slowly declining.

I know I have said it but it bears repeating. Gold price in 1933 adjusted for inflation is about where it is today. Today's price is not a shock to me. Going to $2000 an ounce in the next couple years would be a shock, but $2000 in 5 years would not be, since that is only assuming less than 5% inflation.

Humans tend to think of prices as static and not factor in inflation into returns. I am no different even though I have training in this area. I remember full well buying silver for $4 in 1991. I look back and think how "smart" I was. Even that, factoring in 5% inflation, gives me a cost of over $10 today. $4 back then is not $4 today, it simply is not but humans cannot wrap their minds around that very well. I fall victim every day to this as well.

Fatima is completely right that gold will probably continue to rise, but it should. Oil should as well, and sugar, and silver, and pork bellies, (man those have really gone up, buy bacon if you can because its going through the roof). I think silver is a little too high relatively right now, but that is just my opinion. Its not high enough for me to dump most of my silver holdings though.

 

"Ben Graham exhorted the stock market participant to first draw a fundamental distinction between investment and speculation. In Security Analysis, he proposed a clear definition of investment that was distinguished from what he deemed speculation. It read, 'An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.'"

I'll go with Ben's definition. I don't think speculation vs. investment has anything to do with the asset class involved. It has to do with the depth and accuracy of the research and expertise brought to bear on whatever is under consideration. So one person may be speculating on commodities while another is investing in them. It all depends on the circumstances and not confusing the two. I thought gold was a pretty good investment when it was $400 and silver when it was $7 since they were baiscally selling below replacement cost and far below their historic high prices. I still think both are pretty decent speculations at current prices in the middle of a bull market. The same goes for businesses. At one price and set of conditions a business may be a speculation, and at another the same business may be an investment.

 

Now all you have to do is define "thorough", "safety", and "adequate".

It sounds to me like, by his definition, it's not possible to "invest" in common stocks (which can lose their value), or savings accounts over the FDIC insurance limit (the bank could fold and take your uninsured capital), or real estate (the market could collapse and leave you underwater). This seems like an unduly restrictive definition.