hi all, i am shortly recieving some inheritance and i am wanting to invest it in something like gold. Could you please tell me iff this is a good time to buy or not. Thanks. Jake:high5:
that is a hard question to answer, because no one knows what gold or silver is going to do in the future
Depending on the amount you plan to invest in metals you may want to hedge your bets by averaging your purchases over a period of time. For example you might take 25% and purchase gold now. Then another 25% in 6 months, etc.
Without knowing your approximate age, financial circumstances, job security, level of debt, commitments to dependents, etc.... it would be completely irresponsible to recommend that you invest your inheritance in gold or any other asset class.
If I were you I would play it this way: Let us suppose you receive $100, I would buy 5% on 2009 Ultra High Relief Double. They will not loose their $$$ value nor thier collection-wise beauty. They will only come out this year; that is if we can trust the Mint. The rest of the moneis, I would take a way more conservative action.
Think long and hard about what you are going to do with that money. If you are really determined to invest it in something, get some professional help.
Crystal ball says not today. U see what happend to gold? Probably back down tomorrow though as investors take profits. I agree with peace people, get a professional.
As a short-term investment, gold is not at a good place right now. As a long-term investment, nobody knows. Long term, the stock market has always been a good investment. It looks like we are climbing our way out of the declines of 2008. My money is on conservative mutual funds and bonds for the foreseeable future, although I like physical silver as a way of diversifying. However, I would never sink a major portion of my money in physicals.
Yes, it appears that gold has gone through its resistance level and may very well go over $1,000 per ounce. That said, I believe you should not even consider buying bullion at what may very well be the top of the market, even over the long-term. Although conventional wisdom dictates that current U.S. fiscal policy will lead to possible hyperinflation, there are many indicators that point to a sustained deflationary period as well. You need to ask yourself which is more likely: a run up on gold to $1,500 or a downturn back to the $600 level? My personal opinion is that whatever run up we see in the short-term will be retraced completely longer-term. Now is a great time to be a seller of gold and very risky to be a buyer. If you are looking to add tangible assets, like coins, to your portfolio, I would advocate to purchase high-quality, rare coins instead of coins mostly derivative of bullion value. Furthermore, cost-averaging is essential as others have pointed out. Do your homework and make your purchases over time because the coin market fluctuates jut as every other market.
Thanks very much for great feedback, new to this site but the people are great at replying to queries. Thanks everyone !
The critical question is what is your investment goal timeframe? Is it a year, 5 years, retirement in 30 years? It is very important to diversify your investments, so having a portion in gold is not a bad idea, but realize that gold has gone from about $250 an ounce 9 years ago to almost $1,000 an ounce now. If you believe in the adage buy low, sell high, you would be doing the opposite with gold, but if your timeframe is long enough . . . Although stocks have risen about 50% over the past 6 months, they are still down about 35% from their high in October of 2007. So, a diversified portfolio of no-load stock and bond mutual funds, including perhaps a precious metal or gold stock fund, is something you may want to take a look at in addition to gold coins etc. If the inheritance is substantial (everyone's definition is different) I would get professional advice. Remember that buying an investment is the easy part, not selling when everyone else is panicking - and visa versa, is the hard part. If you live near a Fidelity Investments Investor Center, that might be a good place to start (no, I do not work for them but have in the past). They are a good outfit that cares deeply about customer satisfaction. Good luck.
No matter what you do, remember DO NOT PUT ALL YOUR EGGS IN ONE BASKET. Even if you do dollar-cost-average into gold at what may be lofty levels, do it only as part of your overall portfolio. Do you already own stocks, or good stock mutual funds? Do you have 6-8 months worth of emergency savings (first)? None of the ideas presented here are prima facie bad or good, but you have to look at your own situation. And if the money is considerable, you need to find a reputable investment professional who does not work on commission sales! Good luck. Best Regards, George VDB Coins
Then there is the alternative strategy proposed by former NY Mets pitcher, Tug McGraw. After he signed a large contract and was asked what he planned to do with the money he replied, "I think I'll spend 90% of the money on wine, women and song; and then just waste the rest."
same idea, but by Irish footballler George Best: "I spent a lot of money on booze, birds and fast cars. The rest I just squandered."
